Is 672 a Good Credit Score?

Your credit score is one of the most important numbers in your financial life. It gives lenders an idea of how likely you are to repay debt, and can affect everything from whether you qualify for a loan to how much interest you’ll pay. So where does a 672 credit score land you? Is 672 considered a good credit score?

Yes, both FICO and VantageScore models agree that a score of 672 is generally a good credit score. However, learning more about what makes up your score and how it’s calculated can help you figure out what that 672 means for your finances.

What is a Credit Score?

A credit score is a three-digit number calculated based on information in your credit report, This report details your history of paying bills and managing debt Lenders use your credit score along with other factors to determine your creditworthiness when you apply for financing

The two most common credit scoring models used in the U.S. are:

• FICO score: This model, which was created by Fair Isaac Corporation, rates your credit based on five things: how well you’ve paid your bills in the past, how much you owe, how long you’ve had credit, any new credit you have, and the mix of your credit. FICO scores range from 300 to 850.

• VantageScore: Created by the three major credit bureaus, TransUnion, Experian, and Equifax, the VantageScore also uses a 300 to 850 scale. It weighs the same factors as FICO but applies them slightly differently.

Most lenders check FICO scores when evaluating credit applications. But both models categorize scores into ranges, so you can see where you stand in general terms.

Credit Score Ranges

Even though FICO and VantageScore have different exact ranges, this is how they group scores:

| VantageScore | |
| 781-850 | Excellent |
| 661-780 | Good |
| 601-660 | Fair |
| 500-600 | Poor |
| 300-499 | Very Poor |

This means that a score of 672 is good in both systems. What does that mean for borrowers?.

What a Good Credit Score Means

A good credit score demonstrates that you have an established credit history and manage it responsibly. Lenders see you as a lower-risk borrower compared to those with fair or poor scores.

Benefits of having a credit score in the good range include:

• Better loan approval odds: Lenders are more likely to approve you for mortgages, auto loans, credit cards and other financing.

• Better terms: You may qualify for lower interest rates and more favorable loan terms compared to applicants with lower scores.

• More options: A good score opens up a wider variety of credit products. Lenders reserve their best offers for consumers with excellent credit.

So while a 672 score doesn’t guarantee the lowest rate or access to the most exclusive rewards cards, it still provides significant advantages.

What Makes Up a 672 Credit Score

To understand what your 672 score means, it helps to look at what goes into calculating it. Here are the main factors that influence your FICO and VantageScores:

• Payment history (35% of FICO score): Whether you pay bills on time, have any late payments, bankruptcies or accounts referred to collections. The best way to improve this factor is to always pay on time.

• Utilization rate (30% of FICO score): The ratio of credit you’re using compared to your total available credit limits. Experts recommend keeping this below 30%.

• Credit history length (15% of FICO score): How long you’ve had credit accounts opened. Older accounts help raise this.

• New credit (10% of FICO score): How much new credit activity you have, like recently opened accounts. Too many new accounts can lower scores temporarily.

• Credit mix (10% of FICO score): Whether you have experience with different types of credit, including installment loans and revolving credit like credit cards.

Your 672 score indicates you likely have a relatively short but well-managed credit history. You may have a late payment here or there, or use more of your available credit than ideal. But overall, you demonstrate responsibility that makes lenders comfortable extending financing.

How to Raise a 672 Credit Score

While a 672 credit score provides access to favorable rates and terms, you may want to increase it further. Raising your score could help you qualify for top-tier rewards credit cards, the lowest mortgage and auto loan rates, and interest savings over time.

Here are some tips to help boost your 672 score:

• Lower credit utilization: Pay down balances to decrease your ratio of credit used. Spreading balances across multiple cards can help as well.

• Pay all bills on time: Set up autopay or reminders to avoid missed or late payments if needed. Payment history is the biggest factor in your score.

• Limit hard inquiries: Only apply for credit when you need it to avoid too many inquiries lowering your score temporarily. Comparison shop within a short window as the bureaus count multiple auto or mortgage inquiries as one.

• Monitor your credit: Review your credit reports regularly and dispute any errors you find with the bureaus. This ensures mistakes don’t inadvertently hurt your score.

• Let credit age: Avoid closing old credit card accounts as credit longevity helps your score. Use your oldest cards periodically to keep them active.

The most important thing is developing consistently healthy credit habits over time. Be patient, as improving your credit score doesn’t happen overnight. But sticking to wise financial practices will steadily raise your score and unlock better borrowing terms.

The Takeaway

A FICO or VantageScore of 672 is considered a good credit score, though not quite excellent. It demonstrates responsible management that makes lenders comfortable extending financing, though not necessarily at the very best rates or terms. With diligent credit habits, you can potentially improve your 672 score to reach higher tiers and access the top rewards and interest rates. But even at 672, your credit is good enough to provide significant borrowing options.