Introduction
A 698 credit score sits comfortably in the “good” range, showing that you’ve demonstrated responsible credit behavior over time but may have some areas that could use improvement. While it signals reliability to lenders, it still may prevent you from accessing the lowest interest rates or premium financial products.
Having a clear understanding of what a 698 credit score means and how it affects your borrowing options can help you make smarter financial decisions. In this guide, we’ll explore its impact on loans, credit cards, mortgages, and other opportunities. We’ll also provide actionable strategies to raise your score into the very good or excellent range, helping you save money and improve your financial flexibility.
What Is a 698 Credit Score?
A 698 credit score is classified as good, but it is on the lower end of the “good” range. This means you have a history of responsible credit usage, though certain behaviors or circumstances may be holding your score back from reaching “very good.”
- FICO Score Range: 670–739 is considered good. Your 698 score is right in the middle, showing solid credit management.
- VantageScore Range: 661–780 is considered good. Here, 698 is above average but not yet in the top tier.
Comparison With Other Credit Score Ranges
| Score Range | Classification | Implications |
|---|---|---|
| Below 580 | Poor | High interest rates, limited loan approvals |
| 580–669 | Fair | Moderate approval chances, higher borrowing costs |
| 670–739 | Good | Most loans accessible, moderate interest rates |
| 740+ | Very Good/Excellent | Lowest interest rates, access to premium financial products |
A 698 score indicates a positive payment history and responsible credit usage. However, factors like occasional high credit utilization, late payments in the past, or a limited mix of credit types may be keeping it from rising further.
Is a 698 Credit Score Good?
Yes, a 698 credit score is considered good, meaning you are financially reliable, but you may not always qualify for the most favorable rates or offers.
Loan Approvals and Terms
With a 698 score:
- Personal Loans: Approval is likely, though interest rates may be slightly higher than for very good credit scores. For example, a personal loan at 10–12% APR might be offered, whereas someone with a 740+ score could get 6–8%.
- Auto Loans: Financing is generally accessible, but lenders may require a larger down payment or offer slightly higher interest rates.
- Credit Cards: You can qualify for a variety of credit cards, including some rewards cards, though premium travel or low-APR cards may require a higher score.
Impact on Borrowing Costs
Even small differences in credit scores can significantly affect borrowing costs. For instance, on a $20,000 auto loan, a 698 score may result in hundreds more in interest over the life of the loan compared to a 740+ score. This makes improving your score a financial priority if you plan to take out loans or finance large purchases.
Factors That Affect a 698 Credit Score
Several key components contribute to a 698 credit score. Understanding them can help you identify areas for improvement:
1. Payment History
Payment history accounts for the largest portion of your credit score.
- Timely payments strengthen your score over time.
- Late payments, defaults, or collections can cause noticeable drops.
Example: Missing a single credit card payment by 30 days could reduce your score by 50 points or more, depending on your credit history.
2. Credit Utilization
Credit utilization is the ratio of your outstanding credit balances to your total credit limits.
- High utilization can signal risk to lenders.
- Keep utilization below 30%, ideally closer to 10–20%, to optimize your score.
Example: If you have a $5,000 credit limit, aim to keep your balance under $1,500.
3. Length of Credit History
Longer credit histories are preferred by lenders because they indicate experience managing credit.
- Closing old accounts can shorten your average account age, negatively impacting your score.
4. Credit Mix
A mix of different types of credit—revolving accounts (credit cards) and installment loans (auto loans, mortgages, personal loans)—can boost your score.
- A limited mix may restrict potential score growth.
5. Recent Credit Inquiries
Hard inquiries from applying for new credit can temporarily reduce your score.
- Multiple inquiries in a short time signal risk to lenders.
- Plan applications strategically to minimize impact.
How to Improve a 698 Credit Score
Raising your score from 698 into the very good or excellent range is achievable with consistent effort and smart financial strategies.
1. Pay Bills on Time
- Payment history is critical; even one late payment can lower your score.
- Set up automatic payments or reminders to ensure on-time payments.
2. Reduce Credit Card Balances
- Focus on paying down high balances first to reduce utilization.
- Keeping utilization below 30% can result in a noticeable score improvement within a few months.
3. Avoid Unnecessary Credit Applications
- Each new application triggers a hard inquiry, slightly lowering your score.
- Apply for credit only when necessary, such as for a low-interest loan or essential credit card.
4. Maintain Older Accounts
- Preserving old accounts increases the average age of your credit history.
- Even if you don’t use them frequently, keep them open to benefit your score.
5. Diversify Credit Types
- Adding an installment loan or using different types of credit responsibly can improve your score.
6. Regularly Monitor Your Credit Reports
- Check for errors, fraudulent activity, or outdated information.
- Dispute inaccuracies promptly to protect your score.
Financial Opportunities With a 698 Credit Score
A 698 score still provides access to a wide range of financial products, though some premium offers may remain out of reach:
Credit Cards
- Standard and some rewards cards are available.
- APRs may be higher than those for very good or excellent scores.
Personal Loans
- Available for debt consolidation, major purchases, or emergencies.
- Rates are moderate, but improving your score can reduce interest payments.
Auto Loans
- Approval is likely, though interest rates may be slightly higher than for higher scores.
- Larger down payments may help secure better terms.
Home Loans
- FHA loans and some conventional mortgages are accessible.
- Interest rates are higher than for very good credit scores, but still manageable.
Other Opportunities
- Secured credit cards or credit-builder loans can help strengthen your credit.
- Responsible use ensures steady improvement and access to better offers over time.
Conclusion
A 698 credit score is a strong indicator of financial responsibility. While it allows access to loans, credit cards, and other financial products, interest rates and borrowing terms may not be optimal.
By focusing on timely payments, reducing debt, maintaining older accounts, diversifying credit, and monitoring your credit reports, you can gradually raise your score into the very good or excellent range. Doing so unlocks lower interest rates, premium financial products, and long-term financial stability.
A 698 score is not just a number—it’s a stepping stone toward greater financial opportunities and better financial health.
