Is a 682 credit score good? Credit scores range from a low of 350 to a high of 850. A score of 682 is considered “Fair”.
It’s in your best interest to improve your 682 credit score as much as possible. Credit scores are important when applying for loans, mortgages, jobs, apartments, and professional certifications, licenses, and security clearances.
If you improve your 682 credit score by 38 points to a score of 720, your credit score will be considered “Good”. A “Good” credit score will make it easier to qualify for the best mortgage, credit card, and loan interest rates.
What Can I Get With a 682 Score?
Click the links below to check out lenders and loan options that may be available for a 682 credit score. Note that interest rates are generally subject to market conditions and can change at any time.
So, what can I get with a 682 credit score? It’s likely you’ll qualify for most mortgage, personal loan, and credit card offers. However, you’ll get a better deal by improving your credit scores to 720 and above. We’ll cover how to improve your scores shortly.
Is 682 a good credit score to buy a house? Yes, it is! If you’re a veteran, you may consider a VA mortgage. VA mortgages are relatively easy to qualify for and have aggressive interest rates for credit scores similar to yours.
If you receive VA disability income, you may also be exempt from the VA funding fee, which can make a VA mortgage even more attractive.
If you’re not a veteran, your best bet may be an FHA mortgage.
If you have an existing FHA or VA mortgage, you may be able to reduce your interest rate and payment with a streamline refinance. Credit scores usually don’t matter for streamline refinances.
Can I buy a car with a 682 credit score? Yes, very likely you can! You should qualify for a car loan, but you’ll likely pay a higher interest rate than somebody with credit scores in the 700s.
If you’re over 62 and a homeowner, you may be able to qualify for a reverse mortgage with your credit profile.
How Your 682 Score Is Calculated
There are multiple credit scoring models available, but the one most commonly used by lenders is the FICO. According to MyFICO.com, there are five main factors that go into calculating your 682 credit score:
- Payment history: 35%. Making your payments on time is one of the most important factors that determine your credit scores. Payment history is also commonly evaluated as a separate lending criteria for many types of loans (for example, mortgages).
- Credit utilization: 30%. If you have high utilization (i.e., you’re “maxed out”) on your credit cards, expect your credit scores to take a hit even if you make your payments on time. Ideally, you want to keep your utilization on credit cards below 30% of the credit limit. This is important even if you pay off your credit cards in full every month.
- Credit age: 15%. Length of credit history contributes to good credit scores. Avoid closing old accounts unless absolutely necessary.
- Credit mix: 10%. Lenders like to see a mix of different types of credit accounts, such as revolving (credit card) accounts and installment loans like mortgages, car loans, etc.
- New credit: 10%. Be careful when applying for new credit cards or loans. Too many new accounts can damage your credit scores.
The FICO credit scoring model ignores factors such as race, color, religion, national origin, gender, and marital status. It also ignores where you live, your age, salary, occupation, job title, employer, employment history, and any items reported as child or family support obligations.
Average Credit Scores for People in the United States
So, what is a good credit score? What is an average score? The credit score range goes from a low of 350 to a high of 850. We categorize credit scores as ‘Poor’, ‘Fair’, ‘Good’, and ‘Excellent’ using criteria similar to what mortgage lenders use:
- Poor: 350 to 619
- Fair: 620 to 719
- Good: 720 to 779
- Excellent: 780 to 850
According to Credit.com, the average credit score in the United States was 711 in 2021. This means your credit score is slightly below the national average.
What is a very good credit score? If your scores are 760 or 780 and above, they’re considered excellent, depending on the type of loan you’re applying for. It’s worthwhile to do your best to increase your scores to the high 700s.
How To Increase Your Credit Scores
Your credit rating is super important. If you have an 806 credit score, for example, you’ll likely get the best deals on pretty much any loan you apply for. If you have a 620, you may struggle to get a loan at all.
Your credit profile is also important when you rent an apartment, apply for a job, or get a professional certification or security clearance. This is why it’s important for your credit scores to be as strong as possible even if you have no plans to apply for a loan. Here are some tips for improving your credit score:
- Make payments on time without fail. If you want to improve your credit scores, the most important thing to do is make your payments on time. Payment history is the single largest credit scoring factor.
- Avoid overutilizing revolving accounts like credit cards. A high utilization can severely damage your credit scores even if you make your payments on time. This is a very common reason many people have credit scores in the 600s or low 700s even though they make their payments on time. Ideally, you want to keep your revolving balances below 30% of your credit limits at all times.
- Be careful with balance transfers. Credit card companies often set your credit limit on the new account equal to the amount you’re balance transferring, which means you’re 100% utilized (i.e., “maxed out”) on the new account from the get-go. Your credit score may take a significant hit. If you’re not planning to apply for loans in the near future, this may not matter, but it’s something to keep in mind.
- Keep older accounts. If you’d like to close a few accounts, be sure to leave older accounts open. Length of credit history contributes to good credit scores. It’s usually best to close out newer accounts before you start closing older ones.
- Don’t open too many accounts at once. Be careful not to open too many new credit accounts at one time. If you’re shopping aggressively for new loans or credit cards, your scores may take a hit.
- Clean up derogatory credit. If your credit score is 682, you may have some collections and charge offs in your credit file. These can have a significant negative impact on your scores, so it’s important to get them cleared up as soon as possible to improve your 682 credit score.
Periodically Check Your Credit
It’s important to check your credit periodically to make sure there aren’t any ugly surprises that could pop up the next time you apply for a loan. You can check your credit once per year for free at annualcreditreport.com (credit scores are likely an extra charge).
Protect Your Credit From Damage Caused By Others
As we’ve covered, it’s important to manage your credit properly so your score stays strong. However, it’s also important to protect your credit from damage caused by others. Here are some tips for protecting your credit score:
- Cosign with care. When you cosign for somebody, you become legally obligated on the new debt. We recommend never cosigning at all. But if you must, make sure you’re cosigning for somebody who will make their payments on time without fail. If they don’t, your credit score will suffer. Be especially careful about cosigning for student loans. Student loans can make it tougher to get a mortgage for many, many years to come even if you’re just a cosigner.
- Freeze your credit files. If you’re not planning to apply for loans in the near future, we highly recommend freezing your credit files at the three major credit repositories: TransUnion, Equifax, and Experian.
- Protect your identity. It’s not enough to just be careful about giving out your Social Security number. Your personal information is stored in a huge number of places, including lenders, federal agencies, credit repositories, insurance companies, etc. A single data breach can put your personal information into the hands of identity thieves who will destroy your credit. We highly recommend protecting your credit with identity theft protection.
Over 147 million Americans had their personal information (Social Security Numbers, account numbers, addresses, etc.) exposed in the Equifax data breach of 2017. That means there’s nearly a 1 in 2 chance that some of your personal information has already been compromised. Data breaches happen all the time. Protect your identity before you become an identity theft victim.
Do Credit Inquiries Hurt Your Credit Scores?
Credit inquiries usually don’t damage your credit scores unless you have an excessive number of them.
It’s good to be careful about credit inquiries, but don’t be paranoid about them. It’s not true that a credit inquiry automatically deducts points off of your credit score. It’s OK to have a few credit inquiries if you’re shopping around for the best deal on a loan. If the inquiries are for the same kind of loan and occur in a narrow time window, they’re treated as one for scoring purposes.
Credit inquiries usually only damage your scores if you have an excessive number of them in a short period of time. If you have a lot of inquiries, it looks like you’re desperately shopping for a loan and your 682 credit score will probably take a hit.
Again, credit inquiries are not usually a problem as long as you don’t have an excessive number of them.
Remember, the credit bureaus (Experian, Equifax, and Transunion) make money from the lending industry. The credit bureaus want people to apply for loans. They’re not going to penalize you for shopping with a few lenders to try and get the best deal.
Be Careful With Revolving Debt
A common reason many people with good payment histories have credit scores in the 600s is because of how much revolving debt they carry. We covered this already, but it’s worth emphasizing again.
If you pay your bills on time and don’t have any major derogatory items on your credit like collections, charge offs, bankruptcies, foreclosures, etc., it could be your debt load that is dragging your credit scores down.
We recommend keeping your balances below 30% of your credit limits on revolving accounts at all times.
Is a 682 Credit Score Good?
Is a 682 credit score good or bad? Actually, it’s considered fair. Though you’ll likely be able to qualify for most loans and credit cards, you likely will pay higher rates than if your scores were even just 40 to 50 points higher. It’s in your best interest to improve your scores as much as possible using the tips we’ve provided here.
Check out the video below for more great information about how to improve your credit scores.
Is a FICO score the same as a credit score?
FICO is one of several credit scoring models. However, when somebody refers to a FICO score, they’re referring to the credit score that lenders look at when you apply for a mortgage, loan, or credit card.
How do I go from good to excellent credit?
If you have good credit, you likely pay your bills on time and don’t have any derogatory items such as collections, charge offs, bankruptcies, etc. To get excellent credit scores, we recommend that you keep your credit card usage below 30% of your credit limits and pay them in full every month. Credit card over-utilization is a common reason many people with good scores don’t have excellent scores.