AML Customer Risk Assessment Steps and Tools
Discover how AML customer risk analysis can help identify potential threats using tools like IP & device fingerprinting, and transaction monitoring.
Imagine you're ready to make a big financial move, like buying a car or securing a mortgage, and you check your credit score to see 698. A whirlwind of questions floods your mind: Is this score good or bad? How will it affect your financial future? Let's dive into what a 698 credit score signifies, how it's generally perceived, and what it means for you.
A credit score of 698 falls into a unique category. It's just shy of the "good" range, teetering on the edge of "fair." Generally, credit scores are classified as poor, fair, good, very good, and excellent. A 698 score sits in the upper part of the "fair" range. This score shows that you have some positive credit behaviors, but there's room for improvement.
So, how does a 698 credit score impact you? While it's not bad, it's not excellent either. With a 698 score, you're likely to be approved for loans and credit, but you might need better interest rates. This article will break down actionable tips to boost your credit score from 698 to higher levels. Let's get started on the path to improving your credit health!
The average FICO® Score in the U.S. hovers around 714. With a score of 698, you're slightly below the national average, but you're still in a good position. It means you're close to having an average credit score, which is a positive sign for your financial health.
It has been researched that approximately 21% of U.S. consumers have scores in the Good range. This widespread occurrence means that lenders are familiar with and have established criteria for individuals in this category.
A good credit score, like a 698, has many advantages that can positively impact your financial life. Let's explore the benefits and what they mean for you.
A credit score of 698 demonstrates a solid credit management history. It shows that you handle credit responsibly, even with occasional mistakes. This score reflects your ability to bounce back and maintain good standing, making you a reliable borrower in the eyes of lenders.
Statistics show that about 33% of individuals with a credit score 698 have had late payments. While this isn't ideal, it means that the majority—67%—manage to keep up with payments consistently. This is a key factor in maintaining a good credit score and indicates that you can handle credit well over time.
Lenders view a 698 credit score as solid and reliable. You will likely be approved for various credit products, from credit cards to loans. However, you might not qualify for the best interest rates or the most lucrative rewards programs. This is because lenders still see a moderate level of risk, albeit lower than those with fair or poor scores.
In Summary
A good credit score like 698 provides a stable foundation for your financial activities. It reflects strong credit management, resilience in the face of occasional financial hiccups, and a generally positive perception from lenders. By improving your score further, you can unlock even more benefits, including lower interest rates and better rewards, leading to significant savings and financial opportunities.
Boosting your 698 credit score to an even higher range can unlock better financial opportunities and lower interest rates. Here are five effective strategies to help you improve your credit score:
Keeping a consistent check on your credit score is necessary to understand where you stand and identify any potential issues early on.
This shows lenders that you are not overly dependent on credit and can manage your available credit responsibly.
Consistently paying your bills on time is one of the most straightforward ways to improve your credit score.
Correcting these mistakes can result in a swift improvement in your credit score.
However, only take on new credit when necessary and ensure that you can manage additional debt comfortably.
The distribution of credit scores varies across different generations in the U.S. Here's a breakdown of the percentage of each generation with credit scores in the range of 640–699:
Understanding these percentages can provide insight into the credit health of various age groups and help target financial education and credit improvement efforts more effectively.
Understanding the factors that build your credit score is crucial for maintaining and improving it. Here's a detailed look at what influences your 698 credit score:
Your payment history is an important factor in your credit score, accounting for nearly 35% of the total score. Late or missed payments can significantly impact your score, as they indicate to lenders that you might struggle to meet your financial obligations. Even a single late payment can cause a noticeable drop, so making all payments on time is essential to maintaining a good score.
Credit utilization, the ratio of your current credit card balances to your credit limits, accounts for roughly thirty percent of your credit score. A lower utilization rate shows that you're using your available credit effectively. Your credit utilization should be below 30%. For example, if you have a total credit limit of $10,000, you should aim to keep your total balances below $3,000. High utilization rates can signal financial distress and lower credit scores.
The length of your credit history accounts for about 15% of your credit score. Generally, a longer credit history results in a higher score, as it provides more data on your credit behavior. It contains the age of your oldest account, the average age of all your accounts, and the ages of individual account kinds. Having older accounts open and in good standing can improve this element.
When you apply for new credit, lenders make a hard query on your credit report, which may temporarily reduce your score. This factor makes up about 10% of your credit score. Recent inquiries suggest that you're taking on new debt, potentially increasing your risk as a borrower. Limiting new credit applications and spacing them out over time to minimize their impact on your score is wise.
A diversified mix of credit accounts, including credit cards, mortgages, auto loans, and personal loans, contributes around 10% to your credit score. This shows lenders that you can handle various sorts of credit responsibly. While having every type of account is optional, a healthy mix can enhance your credit profile and improve your score.
Bettering your credit score is a journey that requires consistent effort and commitment. Remember, responsible credit management is key to making steady progress. You can enhance your score over time by avoiding late bill payments, keeping credit utilization low, and avoiding unnecessary new credit.
Maintaining a higher credit score offers long-term benefits, like lower interest rates on loans and good financial opportunities. It's not just about the numbers—it's about opening doors to more favorable economic terms and achieving greater peace of mind.
Ready to take control of your credit and elevate your financial health? South District Group is here to help you every step of the way. Contact us today for personalized guidance and expert support to boost your credit score and secure a brighter financial future.
