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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So, you’ve got a 678 credit score That’s pretty darn good, placing you right in the middle of the pack when it comes to creditworthiness But what does that actually mean? Can you buy a house with a 678 credit score? Can you snag a sweet credit card with awesome rewards? Let’s dive into the world of credit scores and see what your 678 score unlocks.
What Does a 678 Credit Score Mean?
A 678 credit score falls squarely in the “good” credit category. This indicates that you are viewed as a borrower with a low degree of risk because you typically make your bill payments on time. If you impress lenders with that, they’ll be more inclined to approve you for credit cards and loans.
However “good” doesn’t mean “great.” Your score isn’t high enough to qualify for the best interest rates and loan terms. But hey, it’s a solid foundation to build on, and with a few tweaks you can easily boost your score and unlock even more financial opportunities.
Buying a House with a 678 Credit Score
Absolutely! With a 678 credit score, you’re well above the minimum requirements for most mortgage loans. Conforming mortgages (the kind backed by Fannie Mae or Freddie Mac) require a score of 620, while FHA loans with low down payments only need a 580. So, you’re golden on that front.
However, your score won’t qualify you for the best mortgage rates. Lenders reserve those for borrowers with exceptional credit. But don’t fret, you’ll still get rates that are pretty darn good, likely around the national average.
Credit Cards and Your 678 Score
Good news! You should have no problem getting approved for a standard credit card with your 678 score. However, the top-tier cards with the most enticing rewards and benefits might be out of reach. Those usually require scores in the “excellent” or “exceptional” range.
Also, remember that your credit score is just one piece of the puzzle. Lenders will also consider your income and other debts when making a decision. So, even with a high score, you might not get approved if you’re already carrying a lot of debt.
Personal Loans and Your 678 Score
Personal loans are a bit trickier. Some lenders require scores in the 700s, while others are more flexible. On the other hand, you stand a good chance of being granted a personal loan with reasonable terms if your score is 678.
Boosting Your 678 Score to Greatness
Your 678 score is a solid starting point, but why not aim for greatness? Here are a few tips to take your credit score to the next level:
- Keep your credit utilization low: Aim to use less than 30% of your available credit. The average consumer with a 795+ credit score only uses 7% of theirs.
- Apply for new credit sparingly: Hard inquiries from credit checks can ding your score. Only apply for new credit when you really need it.
- Let your credit age: The average consumer with a 795+ credit score has an average account age of 12 years. The longer your credit history, the better.
- Pay your bills on time: This is a no-brainer, but it’s worth mentioning. Even one late payment can hurt your score.
Remember, Your Credit Score is Just One Piece of the Puzzle
While a good credit score is important, it’s not the only factor that matters. Lenders also consider your income, employment, and overall financial health. So, even with a less-than-ideal credit score, you might still qualify for a loan if the rest of your financial picture is strong.
Upstart: Looking Beyond the Credit Score
At Upstart, we believe that your credit score doesn’t tell the whole story. For this reason, when reviewing your loan application, we also take into account other elements like your income, work experience, and education. This enables us to provide loans to eligible applicants who may not have the best credit scores but are still creditworthy.
Therefore, a 678 credit score is a good place to start when applying for credit cards, personal loans, or home purchases. You can easily raise your score and get access to even more financial opportunities with a few small adjustments and wise financial choices.
What credit card can I get with a 678 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.
A 678 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.
Do You Really Need A Credit Score To Buy A House?
FAQ
Can I buy a house with 678 credit score?
What can I get with a credit score of 678?
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Type of Credit
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Do You Qualify?
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Store Credit Card
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YES
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Unsecured Credit Card with No Annual Fee
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YES
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Unsecured Credit Card with Rewards
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YES
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Home Loan
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YES
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What is the perfect credit score to buy a house?
What credit score is needed to buy a 300k house?
What does a 678 credit score mean?
A 678 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. “Fair” score range identified based on 2023 Credit Karma data. Fair credit does open the door to some possibilities.
Is a 678 FICO ® score good?
A 678 FICO ® Score is Good, but by earning a score in the Very Good range, you could qualify for lower interest rates and better borrowing terms. A great way to get started is to check your credit score to find out the specific factors that impact your score the most and get your free credit report from Experian.
What credit score do you need to buy a house?
Whether your credit is flawless or average, here’s what to expect when you apply for a mortgage. The minimum credit score to buy a house is generally 620, but it can vary depending on the kind of loan you’re seeking.
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.