My 695 Credit Score – Is it Good or Bad (or Otherwise)?

Share on facebook
Share on twitter
Share on linkedin

Q: “I have a 695 credit score. Is that considered good or bad?”

This question was submitted by one of my visitors recently. I thought it would be a good subject to dive into a little deeper.

Here’s my answer:

Unfortunately the answer to this question is not that simple. It really depends on what type of credit score you received.

Two main types of credit scores: FICO Score and VantageScore.

You have most likely received one of these two most common types. See below for specifics based on which one you received.

695 FICO Score (What it Means)

FICO Score (FICO = Fair Isaac Corporation) is certainly one of the most well known types of credit scores.

FICO Scores are used by 90% of lenders to determine approvals, rates and terms. If you want to see the type of credit score your lenders will likely see, this is the one to get.

FICO Scores often have a range of 300-850, the higher the better.

FICO Score Range & Rating:

Range Rating
800-850 Exceptional
740-799 Very Good
670-739 Good
580-669 Fair
300-579 Very Poor

Under the FICO Score model, a 695 credit score is considered “Good”.

Generally, any FICO Score above 670 is considered a good credit score.

How Does a 695 FICO Score Compare?

Range % of People
800-850 19.9%
740-799 18.2%
670-739 21.5%
580-669 20.2%
300-579 17%

Source: Experian

According to this data from Experian, you are among 21% of the population who has a FICO Score in the 670-739 range.

Impact of a 695 FICO Score:

If you have a 695 FICO Score (Good Credit), you will most likely be approved for credit at competitive rates and terms.

While the best rates and terms are reserved for those with “Very Good” credit (740+), a score in this range should qualify for attractive offers from banks and lenders.

695 VantageScore (What it Means)

VantageScore is a scoring model developed by the 3 major credit bureaus (Experian, Equifax, and TransUnion).

This scoring model was designed to compete with FICO.

Credit scores by VantageScore are not usually used by lenders, but it’s a very common score to get when you’re checking your own credit.

Most “free credit scores” are VantageScores.

VantageScore also typically has a range of 300-850, the higher the better.

VantageScore Range & Rating:

Range Rating
750-850 Excellent
700-749 Good
650-699 Fair
550-649 Poor
300-549 Very Poor

Under the VantageScore model, a 695 credit score is considered “Fair”.

A “Good” credit rating under this scoring model would start at 700.

How does a 695 VantageScore Compare?

Range % of People
750-850 30.3%
700-749 12.6%
650-699 18.3%
550-649 34.1%
300-549 16.7%

Source: Experian

According to this data from Experian, you are among 18.3% of the population who has a VantageScore in the 650-699 range.

Impact of a 695 VantageScore:

If you have a 695 VantageScore (Fair Credit), you will likely be approved for credit, but not at competitive rates and terms.

The more competitive offers and rates are generally reserved for people with “Good” credit (VantageScore of 700+).

Why Your Credit Score Matters

Credit scores help lenders determine how likely you are to repay your loan on time.

They are sometimes called “risk scores” because they help lenders determine the how high of a risk they are taking by lending you the money you are seeking.

That’s why a person with a higher credit score will typically receive better interest rates. Because they are significantly more likely to repay the loan than someone with a much lower score (less risk for the lender).

Having a good credit score is important.

A good credit score can save you hundreds or even thousands in interest.

Without good credit, you could even be denied the loan or apartment you are applying for.

How Your 695 Credit Score Was Calculated

While exact details of how your 695 credit score was calculated is an industry secret, we do know that credit scores are formulated using many different pieces of data from your credit report.

This data is grouped into five categories as shown below. The percentage to the right of each one indicates how important it is in determining your credit score.

  1. Payment History – 35% – This is typically the first thing a potential lender will want to know. Have you paid your past accounts on time? Have you missed any payments?
  2. Total Amounts Owed – 30% – How much you owe on each of your credit accounts. Higher amounts does not necessarily mean you are high risk, other factors are considered as well.
  3. Length of Credit History – 15% – Generally a longer credit history will yield higher credit scores. But that’s not always the case, it also depends on how often you use your credit, and how responsibly you manage your debt.
  4. Types of Credit in Use – 10% – Credit score providers will consider the mix of credit accounts you have, such as credit cards, retail accounts, auto loans, mortgages etc.
  5. New Credit – 10% – Lenders want to know if you’ve recently been applying for many credit accounts in a short period of time. That can often represent a greater risk to the lender.


With 695 credit score, you are probably not going to be offered the best interest rates on credit cards and loans. But it should be sufficient for some decent credit and loan offers.

If you work on boosting your credit score to 700+, you will be offered much more attractive interest rates and loan terms.

Suggested reading: How I improved my credit score by 111 pts.

Leave a Comment

Your email address will not be published. Required fields are marked *