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.
We think its important for you to understand how we make money. Its pretty simple, actually. The offers for financial products you see on our platform come from companies who pay us. The money we make enables us to produce our other fantastic tools and instructional materials as well as to provide you with free credit scores and reports.
Compensation may factor into how and where products appear on our platform (and in what order). However, since the majority of our revenue comes from the offers you accept, we make an effort to present you with offers we believe are a good fit for you. Thats why we provide features like your Approval Odds and savings estimates.
Naturally, not all financial products are represented by the offers on our platform, but our aim is to present you with as many excellent options as possible.
A 689 credit score falls within the “good” range, according to Experian. This means you’re in a sweet spot where you can qualify for various loans and credit cards, but you might not get the best interest rates or terms.
Here’s a breakdown of what you can expect with a 689 credit score:
Credit Cards:
- Unsecured credit cards with rewards: You should be able to get a standard credit card with a 689 credit score. However, you might not qualify for the best rewards cards or those with 0% APR offers.
- Secured credit cards: These cards require a security deposit, which acts as collateral for your credit line. They can be a good option if you have limited credit history or bad credit.
Loans:
- Home loans: You can qualify for a mortgage with a 689 credit score, but you might not get the best interest rates. You’ll also need to meet other requirements, such as having a good income and employment history.
- Auto loans: You can also get an auto loan with a 689 credit score. However, your interest rate will be higher than someone with a higher credit score. Be sure to shop around for the best rates.
- Personal loans: You might be able to get a personal loan with a 689 credit score, but not all lenders will approve you. Some lenders require scores well into the 700s. However, you may get a competitive rate with Upstart-powered personal loans, which consider non-traditional variables in their assessment.
Here are some additional things to keep in mind:
- Your credit score is just one factor that lenders consider. They will also look at your income, employment history, and debt-to-income ratio.
- It’s important to shop around for the best rates. Don’t settle for the first offer you get.
- You can improve your credit score over time by paying your bills on time, keeping your credit utilization low, and avoiding opening new credit accounts too often.
Here’s a table summarizing what you can get with a 689 credit score:
| Type of Credit | Do You Qualify? |
|---|---|
| Unsecured Credit Card with Rewards | YES |
| Home Loan | YES |
| Auto Loan | YES |
| Personal Loan | MAYBE |
Remember a 689 credit score is a good starting point but there’s always room for improvement. By taking steps to improve your credit score, you can unlock even better rates and terms on loans and credit cards.
Lower your credit utilization rate
Your credit utilization rate is the percentage of your available credit that you’re using. For instance, in the event that you have a single credit card with a $1,000 limit and $500 balance, your credit utilization rate would be 20%500%.
Generally speaking, the lower your credit utilization rate, the better for your scores. A good general rule of thumb is to maintain your credit utilization rate below %2030%%20%E2%80%94% and even lower than that, if at all possible. A 50% rate is an example of a high credit utilization rate that could negatively affect your credit.
By eliminating debt (rather than adding to your already-existing credit cards), you can lower your credit utilization rate. You can also lower your credit utilization rate by increasing the amount of credit available to you. One way to achieve that is to apply for a higher credit limit from your lender or to open a new loan or credit line. However, you should avoid opening too many credit lines too frequently as that could also negatively affect your credit.
A 689 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.
Depending on your unique credit profile, there are several strategies to improve your credit from fair to good (and beyond). But there are some overall healthy credit habits you can practice.
Here are some tips to help you address the factors that can affect your credit.