How Good Is a Credit Score of 689?

FT Contributor
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According to credit reporting bureau Experian, a credit score of 689 officially ranks as “Good.” While you’ve surpassed minimum ranking factors for “Very Poor” and “Fair” credit scores, taking simple steps to further improve your score can earn you a “Very Good” or an “Exceptional” ranking.

A collection of financial factors like credit age, credit type, and payment history, your credit score is the key to unlocking fiscal opportunities like home loans, new credit cards, even reasonable auto insurance premiums.

Further improvements to your credit score of 689 can mean lower interest rates, more affordable monthly payments, and more rewarding credit card incentives.

Credit scores can be confusing to understand, but they’re one of the most important financial figures that can affect you. Whether that means a personal loan to fund a honeymoon or a property mortgage for short- or long-term housing, credit scores are the key when it comes to spending money in the ways you want.

Free, safe-for-use credit reporting programs like AnnualCreditReport.com can provide updates on recent credit score improvements or changes, to help you understand and improve your credit score.

Why Your Credit Score Is 689

While it’s difficult to identify the exact reason for credit score changes, common influences on 689 credit score fluctuations can include credit utilization, total debt, and irregular payment history.

Credit Utilization

Credit utilization simply refers to the amount of credit currently used by a borrower, expressed as a ratio of the amount of total credit that the borrower has available.

There is generally a negative relationship between total credit used and overall credit score. With a Good credit score of 689, excessive credit utilization may be keeping you from achieving an even higher ranking.

Improving your credit utilization means either lowering the overall amount of credit used or further expanding your available credit. Lowering your monthly credit used can be accomplished by making smart financial decisions.

For example, avoid unnecessary purchases so that you can dedicate a fuller percentage of monthly income specifically toward debt.

An approved request for more available credit can also help benefit your credit utilization percentage, thereby giving your credit score of 689 a chance for improvement.

Total Debt

Total debt is another determining factor in deciding credit score. Your total remaining debt is the second-most important influence on credit score, behind payment history. High levels of remaining debt can negatively affect credit score, especially if no payments have been made toward those debts for several straight payment periods.

At times, it’s normal to maintain high levels of debt. For example, after closing on a home, a borrower will naturally owe high levels of debt to their mortgage loan provider. However, high levels of debt that are not regularly decreasing can further drive rankings back toward a Fair or Very Poor credit score.

Payment History

As the ranking factor which affects credit score the most, payment history has the potential to critically impact your credit rating. Full, on-time payments are one of the major signs of a Good credit score; by contrast, lesser credit scores are typically characterized by incomplete or late payments.

With a credit score of 689, you’ve likely begun to make a practice of regular payments toward total debt. Perhaps incomplete, late, or missed payments have compromised your credit score or slowed its growth, though your current Good ranking indicates a habit of regular credit repayment.

What Can You Do With a 689 Credit Score?

With a credit score of 689, you’re firmly in line for certain financial benefits. While you’re not likely to see the lowest insurance rates or the most affordable premiums, a Good credit score still means you’ll be allowed to secure new lines of credit whenever necessary.

Consult the details below for even more information on the opportunity you’ve earned with a credit score of 689.

  • Obtaining a personal loan may be possible from the majority of lenders, though borrowers should be wary of high interest rates and fees if approved.
  • Securing a mortgage loan is also a possibility with a credit score of 689, though the same conditions apply: borrowers should expect lofty interest rates.
  • Signing up for a rewards-based credit card is possible but your financial status will have to satisfy certain conditions, such as minimum salary requirements and low outstanding debt.
    • The best rewards-based credit cards offering airline and hotel perks aren’t available, but you may still be able to secure an incentive-based credit card.
  • Landing an apartment rental is usually possible with a 689 credit score, though each apartment complex usually has its own standards.
    • If approved, your monthly rent may be subject to additional security fees to protect apartment managers from inherent risk.

A Good credit score of 689 means a borrower will often be approved for a personal loan, mortgage loan, or an apartment rental, alongside certain rewards-based credit cards.

Further improving your credit score to a Very Good or Exceptional ranking will help you streamline loan acceptance, and lower associated interest rates and fees.

How to Improve a 689 Credit Score

Improving your credit score of 689 means taking simple, calculated steps to practice disciplined spending habits. Ensure that old credit is paid down as fast — or faster — than new debt is obtained.

Keep loan utilization low, dedicate significant portions of your monthly income toward loan repayment, and minimize credit applications to reduce hard inquiries.

No matter how much money you make each month, practicing sound financial habits will go a long way toward improving your credit score of 689. Limit leisure-based purchases, especially ones you can’t immediately pay off.

Keep the average age of your credit accounts high, to positively influence your credit score. And consult one of the best credit repair companies if you need to dispute any charges or other details on your financial record.


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