In a Nutshell: A fair credit score is typically in the middle of the range, not very high nor very low. You might have trouble getting approved for some credit cards or loans with advantageous terms and rates if your credit score is only fair. You can improve your credit by learning how to read and comprehend your free credit reports and credit scores from Credit Karma. Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect.
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Absolutely! With a credit score of 682 you’re in a great position to buy a house. This score falls within the “good” range which means you’ll likely qualify for a conventional loan with competitive interest rates and terms.
Here’s what you need to know about buying a house with a 682 credit score:
- Conventional loans: With a 682 credit score, you can qualify for a conventional loan with just a 3% down payment. However, you may still face a higher interest rate than someone with a higher credit score.
- FHA loans: If you have a lower down payment, you may want to consider an FHA loan. These loans require a minimum credit score of 580, and you can qualify with just a 3.5% down payment. However, FHA loans require you to pay mortgage insurance premiums (MIP), which can add to the overall cost of the loan.
- VA loans: If you’re a veteran or active-duty service member, you may be eligible for a VA loan. These loans don’t have a minimum credit score requirement, and they offer other benefits like no down payment and no private mortgage insurance (PMI).
- USDA loans: USDA loans are available to borrowers in rural areas, and they don’t have a minimum credit score requirement. However, you’ll need to meet certain income requirements to qualify.
In addition to your credit score lenders will also consider your income debt-to-income ratio, and employment history when making a decision on your loan application. If you have a strong financial profile, you may be able to qualify for a loan even if your credit score is slightly below 682.
Here are some tips for buying a house with a 682 credit score:
- Get pre-approved for a mortgage. This will give you a good idea of how much you can afford to borrow and what your interest rate will be.
- Shop around for the best mortgage rates. Compare offers from different lenders to find the best deal.
- Make a larger down payment. This will help you qualify for a lower interest rate and avoid paying private mortgage insurance.
- Improve your credit score. Even a small increase in your credit score can make a big difference in your interest rate.
With a 682 credit score, you’re in a great position to buy a house. By following these tips, you can increase your chances of getting a loan with competitive terms and rates.
Here are some additional resources that you may find helpful:
A 682 credit score is generally a fair score. While a lot of people have fair scores, you may still find it difficult to get approved for credit without high fees and interest rates with a score in this range.
| Generation | Percentage |
|---|---|
| Gen Z | 22.5% |
| Millennial | 18.4% |
| Gen X | 18.3% |
| Baby boomer | 15.0% |
| Silent | 10.7% |
“Fair” score range identified based on 2023 Credit Karma data.
Fair credit does open the door to some possibilities. If your credit score is moderate, you may be able to get a loan with better terms than if you had to start from zero. Additionally, you might be accepted for an unsecured credit card with reasonable fees and interest rates, as well as perhaps some small rewards and cash back.
To understand what fair credit means, it’s helpful to first understand exactly what a credit score is. A credit score is a three-digit number that gives potential lenders a sense of your credit health. To put it another way, it aids lenders in determining your likelihood of repaying loans to them. Credit scores aren’t the be-all, end-all of lending decisions, but they can be an important aspect.
Of course, it gets a bit trickier from there.
Depending on the various credit-scoring models developed by organizations such as FICO and VantageScore, you could have a wide range of credit scores. One of your credit scores may differ from another as a result of these models’ potential to weight different aspects of your credit history differently. Furthermore, since credit-scoring models may rely on data from various credit bureaus, the information in the scores may differ even if they are computed using precisely the same factors and weighting.
To add to the confusion, it’s frequently unclear which credit score a given lender considers or what level of score you must meet to be approved.
The good news is that you can still use individual credit scores to gauge your overall credit health. One such source is Credit Karma, which offers free credit scores. Additionally, you still have opportunity to improve your financial future if you review your scores and find that they are reasonable. If you maintain good credit practices over time, your scores may rise and you may be able to obtain better financial products.
Let’s take a closer look at what fair credit is and where you can go from here.
You may be wondering how to raise your credit if your scores are only mediocre.
Although you have some experience using credit, fair credit indicates to lenders that you have a long way to go in building your credit. With patience and persistence, you can achieve good or even excellent credit scores!.
However, you must first comprehend the variables that may impact your credit scores and the steps you can take to resolve them.
One of the most impactful ways to build credit is also one of the simplest: Make on-time payments.
Unfortunately, late payments can stay on your credit reports (and impact your credit) for up to seven years. If you’ve already missed a payment, it’s a good idea to pay it off as soon as possible. Otherwise it could go into collections and have an even greater effect on your scores.
You don’t have to wait the full seven years to see an improvement in your credit scores because the negative effects of late payments usually fade over time. But there are still steps you can take as the clock counts down. Consider setting up autopay to avoid future late payments. If this is your first instance of a late payment, get in touch with your lender and attempt to convince them to remove the late payment once you bring your account up to date. It doesn’t always work, but it’s worth a shot.
Your credit utilization rate is another important factor in determining your credit scores. It measures how much of your available credit you’re using at any given time. Your credit utilization rate will go down as you establish new credit accounts or pay off existing credit card debt. If you avoid taking on additional debt concurrently, this may help raise your credit scores.
This is obviously easier said than done, and obtaining new credit may result in hard inquiries being made on your credit reports. But even if you can’t pay off all of your debts right now, every little bit helps.
As a general rule of thumb, you should never use more than 30% of your credit limit at once, so this is a good benchmark to aim for. Anything higher might indicate to lenders—regardless of whether it’s true—that your financial situation is a little unstable.
What credit card can I get with a 682 credit score?
As someone with fair credit, you may have access to a number of unsecured credit cards. Unlike secured cards, an unsecured card doesn’t require you to put down a security deposit.
That’s a plus, but there are other factors to consider. For example, many unsecured cards available to applicants with fair credit may charge an annual fee. Additionally, these cards might have a high variable annual percentage rate (APR) on purchases. If you carry a balance rather than paying off at least your statement balance each month, this could result in high interest charges.
If your credit is fair, you may be able to get a credit card with a modest credit limit; however, some issuers will review your credit limit automatically after a few months of on-time payments, at which point they may increase it. Your credit limit is important, because it’s directly correlated with your credit utilization rate.
Minimum Credit Score to Buy a House | Retail Mortgage
FAQ
Is 682 a good credit score to buy a house?
What can you do with 682 credit score?
Is 680 a good credit score to buy a house?
Is 688 a good credit score to buy a house?
Can you get a mortgage with a 620 credit score?
Make on-time payments on credit cards, loans and other debts. Some conventional mortgage providers will lend to those with a credit score lower than 620. Cardinal Financial Mortgage offers conventional loans, as well as FHA, VA, USDA loans, and will approve borrowers with a credit score as low as 550. Terms apply.
Can a 680 credit score qualify for an FHA loan?
– The minimum down payment required for an FHA loan is **3.5%** . 2. **FHA Loan Rates for 680 Credit Score**: – According to Bankrate, the average **FHA loan rate** for credit scores in
Should I buy a home with a 660 credit score?
Lenders will use a decision score of 660 to decide whether to offer you both a loan and determine the terms. A major benefit of buying together is qualifying for a larger loan amount because your combined income is higher than your individual income.
Can you buy a house with a 580 credit score?
If your credit score is above 580, you’re in the realm of mortgage eligibility and homeownership. With a score above 620, you should have no problem getting credit-approved to buy a house. But remember: Credit is only one piece of the puzzle.