We are an independent, advertising-supported comparison service. Our objective is to empower you to make confident financial decisions by giving you access to interactive tools and financial calculators, publishing original and unbiased content, and allowing you to conduct free research and information comparisons.
Issuers that Bankrate has partnerships with include American Express, Bank of America, Capital One, Chase, Citi, and Discover, among others.
Your credit score is a crucial factor in determining your eligibility for a mortgage and the interest rate you’ll pay A 690 credit score falls within the “good” range, but it’s not the best score you can have. Let’s delve into what this means for your homebuying journey.
What does a 690 credit score mean?
A 690 credit score indicates that you’re a relatively low-risk borrower with a good track record of paying your bills on time. However it’s not considered exceptional, and you might not qualify for the best loan terms.
Can you get a mortgage with a 690 credit score?
Indeed, a 690 credit score is significantly higher than what is typically required to qualify for a mortgage loan. Nevertheless, your individual score as well as additional variables like your income and debt-to-income ratio will determine the interest rate you end up with.
How does your credit score affect your mortgage rate?
The higher your credit score, the lower your interest rate will likely be. This can translate to significant savings over the life of your loan. For instance, the average annual percentage rate (APR) on a new, 60-month auto loan for a person with a FICO score of 720 or higher is 5, according to MyFICO. 64%. With a score in the 690-719 range, it’s 6. 83%. That’s a difference of almost 1. 2 percentage points, which could save you thousands of dollars in interest.
Tips for improving your credit score:
- Pay your bills on time: This is the single most important factor in your credit score.
- Keep your credit utilization low: Aim to use less than 30% of your available credit.
- Don’t apply for new credit too often: Hard inquiries can lower your score.
- Become an authorized user on a responsible credit card: This can help you build your credit history without having to open a new account.
- Dispute any errors on your credit report: This can help you remove negative information that is dragging down your score.
Remember, your credit score is just one piece of the puzzle. Lenders will also consider your income, employment history, and debt-to-income ratio when determining your eligibility for a mortgage.
Here are some additional resources that you may find helpful:
- Bankrate: What Credit Score Do You Need To Buy A House?
- Upstart: 690 Credit Score: What You Need to Know
- Experian: What is a Good Credit Score?
You can raise your credit score and better position yourself to purchase your dream home by heeding these advice and making use of the resources offered.
P.S. Don’t forget to shop around for the best mortgage rates. Comparing offers from multiple lenders can save you a lot of money.
Why your credit score matters to lenders
Your credit score helps lenders determine your ability or inability to repay the mortgage (and, subsequently, their risk). Your debt-to-income ratio (DTI), or the proportion of your monthly debt payments to your income, is another factor that lenders look at.
For example, your debt-to-income ratio (DTI) would be 31% if your monthly income is $4,000 and you have $1,250 in credit card payments, loan payments, housing expenses, and other debts. Generally speaking, the ratio should be less than 36%, but some lenders will accept higher ratios in exchange for a larger down payment.
Can I get a mortgage with a low credit score?
Low credit scores can still be used to obtain a mortgage, but the interest rates and monthly payments will be higher. Lenders may be more stringent about other aspects of your finances, too, such as your DTI ratio.
Keep in mind that credit requirements vary from lender to lender. Shop around with multiple lenders to find one that will work with you.
Do You Really Need A Credit Score To Buy A House?
FAQ
How much of a loan can you get with a 690 credit score?
|
Lender
|
Loan Amounts
|
APRs
|
|
SoFi
|
$5,000 – $100,000
|
8.99% – 29.99% Fixed APR with all discounts
|
|
Wells Fargo
|
$3,000 – $100,000
|
7.49% – 23.24%
|
|
USAA
|
$1,000 – $100,000
|
7.24% – 17.65%
|
|
Discover
|
$2,500 – $40,000
|
7.49% – 24.99%
|
Can I get a house with a 690 credit score?
What can I buy with a 690 credit score?
|
Type of Credit
|
Do You Qualify?
|
|
Unsecured Credit Card with No Annual Fee
|
YES
|
|
Unsecured Credit Card with Rewards
|
YES
|
|
Home Loan
|
YES
|
|
Auto Loan
|
YES
|
What is an excellent credit score to buy a house?
What is the best credit score to buy a house?
When considering the best credit score to buy a house, many lenders use the FICO model for credit scores. It grades consumers on a 300 to 850 point range, with a higher score indicating less risk to the lender. FICO scores range as follows:
How does a 690 credit score affect a home loan?
Credit scores are an essential piece of your home loan application. Your credit score might even determine whether or not you get approved for a loan at all. A 690 credit score puts you in a good position to qualify for a conventional loan, but lenders consider many other factors. Your credit score also influences your mortgage rate.
Is 690 a good credit score?
Here is a list of our partners and here’s how we make money. A 690 credit score is considered a good score on the most common credit score range, which runs from 300 to 850. How does your score compare with others? You’re within the “good” score range (690 to 719), but just barely — any drop could land you in the “fair” category.
Is a 690 FICO ® score good?
A 690 FICO ® Score is Good, but by raising your score into the Very Good range, you could qualify for lower interest rates and better borrowing terms. A great way to get started is to get your free credit report from Experian and check your credit score to find out the specific factors that impact your score the most.