Is 698 a Good Credit Score? A Comprehensive Guide

A credit score of 698 sits on the cusp of "good," offering a clear path to improved financial opportunities. This comprehensive guide will dissect what a 698 credit score truly means in 2025, how it stacks up against other ranges, and the actionable steps you can take to elevate it further.

Understanding Credit Scores: The Foundation

Before diving into the specifics of a 698 credit score, it's crucial to grasp the fundamental purpose and mechanics of credit scoring. Credit scores are numerical representations of your creditworthiness, essentially a snapshot of your financial behavior and your likelihood to repay borrowed money. Lenders, landlords, insurers, and even some employers use these scores to assess risk. A higher score generally indicates lower risk, making you a more attractive candidate for loans, credit cards, and other financial products. In 2025, the landscape of credit scoring continues to evolve, with more sophisticated algorithms and a greater emphasis on comprehensive financial data.

The FICO Score and VantageScore Models

The two most widely used credit scoring models in the United States are FICO and VantageScore. While they share similar goals, their methodologies can differ slightly, leading to minor variations in your reported scores. Both models typically use data from the three major credit bureaus: Equifax, Experian, and TransUnion.

• FICO Score: This is the most prevalent model, with various versions used by lenders. The FICO Score 8 and FICO Score 9 are common, with newer versions like FICO Score 10 and 10T gaining traction. FICO scores generally range from 300 to 850.
• VantageScore: Developed by the three credit bureaus, VantageScore aims to provide a more consistent scoring model across bureaus. It also ranges from 300 to 850, and its latest version, VantageScore 4.0, is increasingly being adopted.

Understanding which scoring model a lender uses can be helpful, but for general purposes, focusing on improving your score within either model will likely yield positive results. The principles of good credit management apply universally.

Key Factors Influencing Your Credit Score

Your credit score isn't a static number; it's a dynamic reflection of your financial habits. Several key factors contribute to its calculation:

• Payment History (35% of FICO Score): This is the most critical factor. Consistently paying your bills on time, every time, is paramount. Late payments, defaults, and bankruptcies can significantly damage your score.
• Amounts Owed (30% of FICO Score): This refers to your credit utilization ratio – the amount of credit you're using compared to your total available credit. Keeping this ratio low (ideally below 30%) is crucial.
• Length of Credit History (15% of FICO Score): The longer you've had credit accounts open and managed them responsibly, the better. This demonstrates a track record of financial management.
• Credit Mix (10% of FICO Score): Having a mix of credit types, such as credit cards, installment loans (like mortgages or auto loans), and student loans, can be beneficial. It shows you can manage different forms of credit.
• New Credit (10% of FICO Score): Opening multiple new credit accounts in a short period can negatively impact your score. This is because it can signal a higher risk to lenders.

By understanding these pillars of credit scoring, you can begin to strategize how to manage and improve your financial standing, including a score like 698.

What is a 698 Credit Score in 2025?

In 2025, a credit score of 698 is generally considered to be in the "good" range. It signifies that you have a decent history of managing credit responsibly, but there's still room for improvement to access the most favorable terms and rates. It's a score that lenders look at favorably, but it might not unlock the absolute best offers available in the market.

The Nuance of "Good"

The term "good" is subjective and depends heavily on the lender and the specific financial product you're seeking. While a 698 might be "good" enough for some credit cards or personal loans, it might fall short for premium mortgages, prime auto loans, or the lowest interest rate credit cards. Lenders often have internal score thresholds that determine eligibility and interest rates. A score in the high 600s suggests a moderate level of risk, meaning you've likely had a few minor blemishes on your credit report, such as a late payment or a slightly higher credit utilization, but nothing catastrophic like a bankruptcy or foreclosure.

What Lenders See with a 698 Score

When a lender pulls your credit report with a 698 score, they see a borrower who is generally reliable but not perfect. They might note:

• A history of making most payments on time.
• A credit utilization ratio that is likely within acceptable limits but could be lower.
• A credit history of a reasonable length.
• Possibly a few recent inquiries or a mix of credit that could be optimized.

The perception is that while you're a responsible borrower, there's a possibility of future issues if not managed carefully. This often translates into slightly higher interest rates or less favorable terms compared to someone with a score in the 700s or 800s.

The Opportunity for Growth

The most important aspect of a 698 credit score is its potential. It's a solid foundation upon which to build a truly excellent credit profile. The difference between a 698 and a 750, for instance, can mean saving thousands of dollars over the life of a mortgage or securing a car loan with a significantly lower monthly payment. Recognizing this potential is the first step towards actively improving your financial future.

Credit Score Ranges Explained: Where Does 698 Fit?

To truly understand the significance of a 698 credit score, it's essential to contextualize it within the broader spectrum of credit scores. While exact ranges can vary slightly between FICO and VantageScore, and even by the specific version of the model, there's a general consensus on what each tier represents. These classifications help lenders and consumers alike quickly assess creditworthiness.

General Credit Score Tiers (2025)

Here's a breakdown of typical credit score ranges and what they generally signify:

Where 698 Stands Out (and Where it Lags)

As the table above illustrates, a 698 credit score firmly plants you in the "Good" category. This is a significant achievement and a vast improvement over "Fair" or "Very Poor" scores. With a 698, you are generally considered a reliable borrower.

• Advantages of a 698 Score:
  • Eligibility for most credit cards, including some rewards cards.
  • Likely approval for personal loans, though rates might be higher than prime.
  • Potential for auto loan approval, but expect interest rates that are not the absolute lowest.
  • Ability to rent apartments, though some landlords might prefer higher scores.
• Limitations of a 698 Score:
  • You probably won't qualify for the most premium credit cards with the best sign-up bonuses and rewards.
  • Mortgage rates might be slightly higher than those offered to borrowers with scores in the 740+ range, costing you more over the life of the loan.
  • You might not get the lowest advertised interest rates on car loans or personal loans.
  • Some competitive loan products or insurance policies might be out of reach.

The key takeaway is that while 698 is good, the difference between "good" and "very good" or "exceptional" can translate into substantial financial savings. This underscores the importance of continuous credit improvement.

The Impact of a 698 Credit Score on Your Finances

A credit score of 698 has tangible effects on your financial life, influencing everything from the cost of borrowing to the ease with which you can secure essential services. Understanding these impacts can motivate you to take proactive steps to improve your score.

Borrowing Costs: Interest Rates and Fees

The most direct impact of your credit score is on the cost of borrowing money. Lenders use your score to predict your risk, and a higher score generally means lower risk, leading to lower interest rates.

• Mortgages: For a 30-year fixed-rate mortgage, a borrower with a 698 credit score might pay an interest rate that is 0.5% to 1.0% higher than someone with a 740+ score. Over 30 years, this difference can amount to tens of thousands of dollars in extra interest payments. For example, on a $300,000 mortgage, a 1% difference in interest rate could mean paying an extra $60,000 or more over the loan's term.
• Auto Loans: Similarly, auto loan rates can be significantly higher with a 698 score. A difference of even 2-3% in interest can add hundreds or even thousands of dollars to the total cost of a car loan.
• Personal Loans: Approval for personal loans is often possible with a 698 score, but the interest rates can be substantial, making the loan more expensive.
• Credit Cards: While you can likely get approved for credit cards, the rewards programs, sign-up bonuses, and introductory 0% APR offers might be less generous or unavailable compared to cards targeted at those with higher scores.

Loan and Credit Card Approval Odds

A 698 credit score generally places you in a favorable position for approval for many standard financial products. However, it's not a guarantee for all types of credit.

• Prime vs. Subprime: Lenders often categorize borrowers into prime and subprime. A 698 score typically qualifies you for "prime" or near-prime lending, but you might miss out on the absolute best "super-prime" offers.
• Limited Options: While you'll have options, they might be more limited than if you had a higher score. You might need to shop around more diligently to find lenders willing to approve your application with favorable terms.

Beyond Borrowing: Other Financial Implications

The impact of your credit score extends beyond just loans and credit cards:

• Renting Apartments: Landlords frequently check credit scores to assess a tenant's reliability in paying rent. A 698 score is often sufficient, but some high-demand or luxury apartment complexes might have higher minimum score requirements.
• Insurance Premiums: In many states, insurance companies (auto, home, renters) use credit-based insurance scores to help set premiums. A lower score can sometimes lead to higher insurance costs, as it's seen as an indicator of higher risk.
• Utility Deposits: Utility companies (electricity, gas, water) may require a security deposit if your credit history is poor. A 698 score typically means you can establish service without a deposit.
• Employment: Certain employers, particularly in industries involving financial responsibility or security, may conduct credit checks as part of their background screening process. A 698 score is generally not a red flag in these situations.

In essence, a 698 credit score is a good starting point, but optimizing it can unlock significant financial benefits, saving you money and providing greater access to financial products and services.

How to Improve a 698 Credit Score: A Strategic Approach

Improving a 698 credit score from "good" to "very good" or "exceptional" is achievable with a focused and consistent strategy. The key is to address the factors that influence your score most significantly. Here’s a step-by-step guide:

1. Master Your Payment History

Since payment history is the most critical factor, ensuring on-time payments is non-negotiable. If you have any recent late payments, focus on preventing future occurrences.

• Set Up Auto-Pay: For all your credit accounts and bills, set up automatic payments to ensure you never miss a due date.
• Payment Reminders: Use calendar alerts or budgeting apps to remind you of upcoming due dates.
• Catch Up on Delinquencies: If you have any accounts that are currently delinquent, pay them off as soon as possible. The longer a payment is late, the more it hurts your score.

2. Optimize Your Credit Utilization Ratio (CUR)

Your credit utilization ratio is the amount of revolving credit you're using compared to your total available revolving credit. Aim to keep this ratio below 30%, and ideally below 10% for the best results.

• Pay Down Balances: Focus on paying down the balances on your credit cards. Prioritize cards with the highest interest rates or highest utilization.
• Request a Credit Limit Increase: If you have a good payment history with a particular credit card issuer, you can request a credit limit increase. This will lower your utilization ratio, assuming your spending remains the same. Be cautious, as some issuers might perform a hard inquiry, which can temporarily lower your score.
• Avoid Maxing Out Cards: Never let your credit card balances get close to their limits.

Example: If you have a credit card with a $5,000 limit and a $2,000 balance, your utilization is 40% ($2,000 / $5,000). If you pay down the balance to $500, your utilization drops to 10% ($500 / $5,000), which is much better for your score.

3. Lengthen Your Credit History

The longer you've had credit accounts open and in good standing, the better. This factor emphasizes responsible long-term management.

• Keep Old Accounts Open: Resist the urge to close old credit card accounts, especially if they have no annual fee and you've managed them well. Closing an account reduces your average age of credit and can increase your credit utilization ratio if it was a revolving credit line.
• Use Old Accounts Periodically: To keep old accounts active, make a small purchase on them every few months and pay it off immediately.

4. Diversify Your Credit Mix (Carefully)

Having a mix of credit types (e.g., credit cards, installment loans) can be beneficial. However, don't open new accounts solely for the sake of credit mix if you don't need them.

• Consider a Secured Credit Card: If you have limited credit history or want to rebuild after past issues, a secured credit card can be a good option. You make a deposit, which becomes your credit limit.
• Small Installment Loan: In some cases, taking out a small installment loan (like a credit-builder loan) and paying it off consistently can help diversify your credit mix.

5. Be Mindful of New Credit

Applying for multiple new credit accounts in a short period can signal risk to lenders.

• Limit Applications: Only apply for credit when you genuinely need it.
• Shop Smart for Loans: When shopping for a mortgage or auto loan, most lenders will perform a "hard inquiry." However, credit scoring models typically allow for a "rate shopping period" (usually 14-45 days, depending on the model) where multiple inquiries for the same type of loan are treated as a single inquiry. This allows you to compare offers without significantly damaging your score.

6. Monitor Your Credit Reports Regularly

Errors on your credit report can negatively impact your score. You are entitled to a free credit report from each of the three major bureaus (Equifax, Experian, TransUnion) annually via AnnualCreditReport.com.

• Review for Accuracy: Check for any inaccuracies, such as accounts you don't recognize, incorrect payment statuses, or outdated information.
• Dispute Errors: If you find errors, dispute them immediately with the credit bureau and the creditor.

7. Consider Credit-Building Tools

In 2025, more tools are available to help individuals build or improve their credit.

• Rent and Utility Reporting Services: Services like Experian Boost, UltraFICO, and others allow you to potentially add positive rent and utility payment history to your credit report. Check the eligibility requirements and potential impact.
• Authorized User: Becoming an authorized user on a credit card account held by someone with excellent credit can potentially boost your score, but only if the primary cardholder manages the account responsibly.

By consistently applying these strategies, you can systematically improve your credit score from 698 and unlock better financial opportunities.

Common Misconceptions About a 698 Credit Score

Even with a score in the "good" range like 698, misconceptions can lead to poor financial decisions. It's important to clarify what a 698 score truly represents and what it doesn't.

Misconception 1: "A 698 Score Means I'll Get the Best Rates."

Reality: As discussed, 698 is considered "good," but not "excellent" or "exceptional." While you'll likely qualify for many loans and credit cards, the interest rates and terms offered will probably not be the absolute lowest available. Lenders reserve their best offers for those with scores typically in the mid-700s and above. The difference in interest paid over time can be substantial.

Misconception 2: "My Score is Good Enough, So I Don't Need to Worry About It."

Reality: Credit scores are dynamic. A 698 score is a good position, but it can easily slip if financial habits change. A single missed payment, a significant increase in credit utilization, or opening too many new accounts can cause your score to drop. Continuous monitoring and responsible management are crucial to maintain and improve your score.

Misconception 3: "Closing Old Credit Cards Will Improve My Score."

Reality: This is often the opposite of what happens. Closing an old credit card account can:

• Reduce the Average Age of Your Credit History: A longer credit history is generally better for your score.
• Increase Your Credit Utilization Ratio: If the closed card had a credit limit, closing it reduces your total available credit, potentially increasing your utilization ratio if you carry balances on other cards.

Unless an old card has a high annual fee you can no longer justify, it's usually best to keep it open and use it sparingly to maintain its positive impact on your credit profile.

Misconception 4: "Checking My Own Credit Score Will Hurt It."

Reality: This is a common fear, but it's largely unfounded. When you check your own credit score or credit report (often called a "soft inquiry"), it does not affect your score. Only "hard inquiries," which occur when you apply for new credit, can have a small, temporary negative impact.

Misconception 5: "All Credit Scores Are the Same."

Reality: As mentioned, there are different scoring models (FICO, VantageScore) and various versions of these models. A lender might pull your FICO Score 8, while a credit monitoring service might show your VantageScore 4.0. While these scores are usually correlated, they can differ. It's important to know which score is being used when evaluating offers.

Misconception 6: "A 698 Score Means I'm Financially Responsible in All Areas."

Reality: A credit score is a measure of creditworthiness, not overall financial health. You could have a 698 credit score but still have significant debt, lack an emergency fund, or have poor budgeting habits. It's essential to have a holistic approach to your finances, not just focus on your credit score.

Understanding these misconceptions is vital for making informed decisions about your credit and financial future. A 698 score is a good indicator, but it's not the complete picture of your financial standing.

What to Expect with a 698 Credit Score

Navigating the financial world with a 698 credit score means understanding the landscape of opportunities and potential challenges. Here’s a realistic outlook on what you can expect in various financial scenarios in 2025.

Loan and Credit Card Approval

• Credit Cards: You can expect to be approved for many general-purpose credit cards. These might include cards with moderate rewards programs, introductory 0% APR offers (though perhaps not the longest terms), and standard credit limits. You'll likely be eligible for cards that require a "good" credit score. However, premium travel cards, ultra-high-rewards cards, or cards with very low introductory APRs might be out of reach.
• Personal Loans: Approval for personal loans is generally possible. Lenders will assess your income, debt-to-income ratio, and credit history. The interest rates offered will likely be higher than those for individuals with excellent credit, making the total cost of borrowing more expensive. You might need to compare offers from various lenders to find the most competitive rate.
• Auto Loans: Securing an auto loan with a 698 score is usually feasible. You'll likely qualify for financing, but the interest rate will reflect your "good" credit standing. This means you won't get the rock-bottom advertised rates that are typically reserved for borrowers with scores in the 740+ range. Over the life of a car loan, this difference can add up.
• Mortgages: A 698 credit score can qualify you for a mortgage, especially with government-backed programs like FHA loans, which have more lenient credit score requirements. Conventional loans are also possible, but you might not get the lowest interest rates. This can significantly increase your monthly payment and the total interest paid over the 15-30 year term of the loan. You may need a larger down payment to offset the perceived risk.

Renting and Housing

Apartment Rentals: Most landlords and property management companies consider a 698 credit score to be acceptable for renting an apartment. You should be able to pass most credit checks without issues. However, in highly competitive rental markets or for luxury properties, landlords might have higher minimum score requirements (e.g., 700 or 720). In such cases, you might be asked for a larger security deposit or a co-signer.

Insurance Premiums

Auto and Homeowners Insurance: In many states, insurance companies use credit-based insurance scores to help determine premiums. A 698 score generally means you'll pay more for insurance than someone with an excellent credit score. While not as impactful as a poor score, it's a factor that contributes to your overall cost of living. It's always wise to shop around for insurance quotes from multiple providers, as rates can vary significantly.

Utility Services

Utility Deposits: Establishing service with utility companies (electricity, gas, water, internet) typically requires a credit check. With a 698 score, you are generally expected to be approved for service without needing to pay a security deposit. This score indicates sufficient credit reliability to be trusted with ongoing service.

Employment Considerations

Background Checks: For certain professions, particularly those involving financial responsibility, handling sensitive data, or requiring a security clearance, employers may conduct credit checks as part of their background screening. A 698 score is typically not a cause for concern in these situations, as it demonstrates a history of responsible financial behavior.

The Importance of Context

It's crucial to remember that your credit score is just one piece of the puzzle for lenders and other decision-makers. They also consider your income, employment history, debt-to-income ratio, and the specifics of the loan or service you're applying for. While a 698 score opens many doors, actively working to improve it will unlock better terms, lower costs, and greater financial flexibility.

When to Seek Professional Help for Your Credit

While improving your credit score is often a DIY endeavor, there are specific situations where seeking professional assistance can be highly beneficial. If you're struggling to make progress or feel overwhelmed, consulting experts can provide clarity and effective strategies.

Signs You Might Need Professional Help

• Stagnant Progress: You've been diligently trying to improve your score for months or even years, but you're not seeing significant improvement. This could indicate that you're missing key strategies or dealing with complex issues.
• Overwhelming Debt: You have a substantial amount of debt that feels unmanageable. A credit counseling agency can help you create a debt management plan and negotiate with creditors.
• Past Credit Disasters: You have serious negative marks on your credit report, such as bankruptcies, foreclosures, or multiple collections accounts, and you're unsure how to recover or dispute them.
• Complex Credit Report Errors: You've identified errors on your credit report but are having difficulty getting them corrected through direct disputes. Professional credit repair services specialize in navigating these disputes.
• Lack of Understanding: You find credit scoring and financial management complex and confusing. A financial advisor or credit counselor can provide education and personalized guidance.
• Impending Major Financial Event: You're planning to apply for a mortgage, a significant loan, or need to improve your credit for a specific opportunity, and you need to maximize your score quickly and effectively.

Types of Professional Help

• Non-Profit Credit Counseling Agencies: These agencies, often affiliated with the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA), offer free or low-cost services. They can help with budgeting, debt management plans (DMPs), and financial education. A DMP involves consolidating your debt payments through the agency, which then pays your creditors, often with reduced interest rates or fees.
• credit repair companies: These for-profit companies specialize in disputing negative items on your credit report that are inaccurate, outdated, or unverified. They can be effective for removing errors but cannot guarantee the removal of legitimate negative information. It's crucial to choose reputable companies and understand their fees and services. Be wary of companies that promise guaranteed results or charge upfront fees before any work is done.
• Financial Advisors/Planners: While not exclusively focused on credit scores, financial advisors can offer comprehensive advice on managing your overall financial health, including debt, investments, and credit management as part of a broader strategy. They can help you align your credit goals with your long-term financial objectives.
• Legal Assistance: In cases of severe credit report inaccuracies or identity theft, consulting an attorney specializing in consumer law might be necessary.

Choosing the Right Professional

When seeking professional help, always do your research:

• Verify Credentials: Look for certifications and affiliations with reputable organizations.
• Understand Fees: Be clear about all costs involved, whether hourly, monthly, or performance-based.
• Read Reviews: Check online reviews and testimonials from past clients.
• Ask Questions: Don't hesitate to ask about their process, success rates, and what they can realistically achieve.
• Beware of Scams: Avoid any service that guarantees results, asks for payment before services are rendered, or makes unrealistic promises.

A 698 credit score is a solid foundation, but professional guidance can be invaluable for overcoming specific hurdles or accelerating your journey to excellent credit. It's about making informed choices that align with your financial goals.

In conclusion, a 698 credit score in 2025 is a respectable standing, firmly placing you in the "good" category. This score signifies a history of responsible credit management, opening doors to many financial products and services. However, it also presents a clear opportunity for growth. By understanding that this score is a stepping stone, not a final destination, you can leverage its strengths while actively working to overcome its limitations. Focusing on consistent, on-time payments, optimizing your credit utilization ratio, and maintaining a healthy credit mix are paramount. While 698 might not secure you the absolute best rates on mortgages or premium credit cards, it generally ensures approval and avoids the pitfalls associated with lower scores. For those facing significant challenges or seeking accelerated improvement, professional credit counseling or repair services can offer tailored strategies. Ultimately, a 698 credit score is a testament to your financial efforts, and with strategic planning and continued diligence, you can undoubtedly elevate it to achieve even greater financial freedom and savings.