Quick insights
- A 674 credit score is considered to be “good” by both the VantageScore® and FICO® scoring models.
- A good credit score may help you get access to financial options such as credit cards, loans, mortgages and more.
- A higher credit score can improve your chances of approvals and more favorable interest rates.
Perhaps you’ve only ever looked at your credit score once. Maybe you’ve been tracking your score for years. Either way, knowing this three-digit number is valuable if you can understand the meaning behind it. Let’s explore what a 674 credit score means below.
How to manage your credit wisely with a 674 credit score
Credit scores are numerical representations of your creditworthiness, which is your ability to repay debts and manage your credit wisely by making payments. Lenders, landlords and other financial institutions use credit scores among other factors to assess the risk of lending money or extending credit.
To help you understand what a 674 credit score means, let’s list out the credit score ranges for the two main scoring models below.
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
As you can see, a 674 credit score is considered to be good by both models. A good credit score can be helpful for obtaining favorable interest rates, qualifying for loans and accessing various financial opportunities.
Understanding a 674 credit score
Whether you’re just starting out on your financial journey or have been tracking your credit score for years, a 674 credit score indicates that you have begun to achieve a desirable level of creditworthiness. This might mean you’ve been responsible for making your payments and/or you have established a level of credit history.
A 674 credit score may get you approved for various lines of credit. It can also help you obtain more favorable rates. However, you could achieve even more financial opportunities and access more favorable interest rates if you improve your score and move into the “excellent” and other higher credit score categories.
Borrowing opportunities with a 674 credit score
While you may not qualify for the best interest rates and loan terms, it is still possible to obtain credit and loans with a 674 credit score. You may be approved for credit cards, personal loans and more. However, they may come with higher annual percentage rates (APRs), which could cost you more over time in interest.
Additionally, while you may have a range of credit card options to choose from, you may not be approved for cards that come with more attractive rewards. These cards generally require a higher credit score.
Please note that there are other factors evaluated in these lenders’ assessments too.
Purchasing a home with a 674 credit score
Purchasing a home with a 674 credit score may be possible, but it may be more challenging than if you had an excellent credit score.
Be sure to 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.
Buying a car with a 674 credit score
Buying a car may be possible with a 674 credit score, but different dealerships and lenders may use different credit scoring models and different scales to make their own loan decisions, which could impact your loan terms and approval odds. Even with a “good” credit score, you may be declined, subject to higher interest rates or need to provide a larger down payment than if you had a higher credit score. To help improve your chances for approval, it is usually beneficial to add a co-signer to the loan — if the lender allows — to share financial responsibility. All applicants should take note that while important, your credit score is just one of several factors lenders take into account when approving a loan.
Helping improve a 674 credit score
As you can see above, the higher your credit score, the better your chances may be of obtaining loans with more favorable terms or credit cards with more perks and rewards. If you want to help improve your credit score to maybe gain access to more of these financial opportunities, you may want to implement the following strategies:
- Make timely payments on all debts and bills to establish a positive payment history.
- Reduce credit card balances to maintain a low credit utilization ratio (ideally, this ratio should be at 30% or lower).
- Regularly review credit reports for errors and dispute any inaccuracies.
- Avoid opening new credit accounts at the same time and maintain a diverse credit mix.
- Consider enrolling in Chase Credit Journey®, a free online tool where you can check your credit score without impacting it. You may want to use the credit score improvement feature powered by Experian™, which helps you set and achieve credit score goals.
Patience and consistent responsible credit behavior can be key to gradually improving credit scores.
Additional tips for managing credit and building financial wellness
The above steps may help you achieve a higher credit score, but it can be important to build up consistent financial habits such as:
- Do your research and compare loan options to find the best terms and interest rates.
- Prioritize debt repayment.
- Create and stick to a budget to gain more insight into your spending habits
- Protect sensitive information such as your Social Security number (SSN) and credit card account number(s).
In conclusion
A 674 credit score can help you achieve a level of financial wellness. You may be approved for several types of lines of credit and obtain more favorable interest rates than a lower score. However, improving your credit score may increase your chances of approvals. Continue to take control of your credit by implementing some healthy habits and remain diligent as you keep track of your credit score.
