Quick insights
- A 672 credit score is considered to be “good” by VantageScore® and FICO® scoring models.
- With a good credit score, you may have more financial opportunities and be approved for more favorable interest rates.
- You can increase your 672 credit score with consistent, healthy financial habits.
Credit scores are an important tool used to help demonstrate your creditworthiness. Let’s learn what your 672 credit score means below.
Understanding and managing your credit
A credit score is a three-digit number that represents your creditworthiness. It is used, among other factors, by lenders to assess the risk of lending money to you, the borrower. A higher credit score indicates a lower risk, which may make it easier to qualify for loans and favorable interest rates. Credit scores typically range from 300 to 850, but depending on the scoring model used, those numbers could fall into different credit scoring categories. Below, we break down the two main scoring models and their respective credit score ranges.
As of May 2024, VantageScore® ranges are:
- Excellent: 781 to 850
- Good: 661 to 780
- Fair: 601 to 660
- Poor: 500 to 600
- Very Poor: 300 to 499
As of May 2024, FICO® score ranges are:
- Exceptional: 800+
- Very Good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 579 and below
Looking at both score models’ ranges, a score of 672 falls within the good credit score range. While this can indicate that you can be a lower risk to lenders as opposed to someone with a fair or poor score, it is important to note that different lenders may have varying criteria. Additionally, you may find that an even higher score could result in lower annual percentage rates (APRs), higher credit limits and more.
Credit scores are influenced by several factors, including but not limited to payment history, credit utilization and length of credit history. Understanding these factors can help you make informed decisions to maintain and further improve your score.
What a 672 credit score means
Generally, a credit score of 672 is considered to be good for both main credit scoring models (between 661 to 780 for VantageScore and 670-739 for FICO). This means your chances of being able to buy a home or take out an auto loan are higher than someone with a credit score in a lower range. You also may be seen as a lower risk candidate for a loan, meaning that you’ve established a certain level of credit history and have managed your credit wisely and you may be more likely to get more favorable terms.
Buying a house with a 672 credit score
Buying a home with a 672 credit score may be possible, but it may be more challenging than if you had an excellent credit score.
Whatever you decide, carefully review and compare different lenders and loan options to find your best fit for your specific circ*mstances. While important, credit scores are just one of several factors lenders use when approving home loans. In general, some lenders may require a larger down payment, charge higher interest rates or have stricter loan terms for mortgage applicants they may consider in the good range.
Obtaining other lines of credit with a 672 credit score
With a credit score of 672, you may be approved for different types of credit, but the requirements and terms could vary depending on the lender and your overall financial profile. Credit scores are important, but there may be other factors to consider as well, such as:
- Debt-to-income ratio
- Employment history
- Derogatory marks on your credit report
Improving your credit score can increase the chances of obtaining a line of credit with more favorable terms. Let’s explore some of the ways you can do this below.
Helping improve a 672 credit score
There are several approaches you can take to help improve your score, including the following:
- Improve your payment history. This is a heavily weighted factor when calculating your score. Continue to make your payments on time and in full to help demonstrate your creditworthiness.
- Lower your credit utilization ratio. You can do this by lowering your credit card balances by making a budget to help you spend less. Lowering this ratio to about 30% or less can help improve your score.
- Monitor your credit report. Monitoring your credit report allows you to keep an eye out for inaccuracies and potential fraud or identity theft. If you notice something suspicious or inaccurate, be sure to report this to the credit bureau(s).
- Keep old credit card accounts open. Closing a credit card account, even one you use sparingly, could hurt your credit score because it decreases your credit age. Therefore, you may want to consider keeping this card active by using it every once in a while.
- Avoid applying for too many new lines of credit at once. Hard credit checks, which are conducted by your potential lender during the application process, can temporarily decrease your credit score. Applying for several cards at the same time, for example, could affect your score.
- Consider enrolling in Chase Credit Journey®. This is a free online tool anyone, including non-Chase members, can use to check their credit report and credit score without impacting it. You may also want to use the credit score improvement feature. This is a personalized action plan, provided by Experian™, that is based off your credit behavior and your financial goals.
Keep in mind that regardless of your goals, improving a credit score takes time. You may see it go up and down as you continue on your path to improving your creditworthiness. This is normal. Remain patient and diligent in your approach to incorporating best practices for financial health as you continue to work towards improving your score.
In conclusion
Building a positive credit history takes time and healthy financial habits. Whether you’re just starting out on your financial journey or have seen ebbs and flows in your score, a 672 credit score lands in the good range of the Vantage and FICO models. However, you can continue to help improve your score and obtain more favorable loan terms by consistently implementing healthy financial habits.
