What Is a 693 Credit Score With 2 Negative Items Can Get Me?
Your credit score is a crucial factor that lenders use to assess your creditworthiness. It can have a significant impact on your ability to secure loans, credit cards, and favorable interest rates. A credit score of 693 falls within the range of ‘fair’ credit, and having two negative items on your credit report can further impact your financial prospects. Let’s delve into what a 693 credit score with 2 negative items can get you and address some frequently asked questions surrounding this topic.
A 693 credit score is considered to be in the ‘fair’ range, falling between 580 and 669 on the FICO scale, which ranges from 300 to 850. While it’s not an excellent score, it is still within a range where you may be able to qualify for credit. However, having two negative items on your credit report indicates a less favorable credit history.
The impact of these negative items will depend on their severity, recency, and the type of negative items. Common negative items include late payments, collections, charge-offs, bankruptcies, and foreclosures. These negative items can lower your credit score and make lenders hesitant to extend credit to you.
So, what can a 693 credit score with 2 negative items get you?
1. Loans: With a 693 credit score and 2 negative items, you may still be able to qualify for certain types of loans, such as personal loans or auto loans. However, you may face higher interest rates or stricter terms compared to those with better credit scores.
2. Credit Cards: You may be eligible for credit cards, but they may come with lower credit limits and higher interest rates. Consider applying for secured credit cards to rebuild your credit.
3. Housing: Renting an apartment may still be possible, but landlords may conduct a credit check and consider your negative items before approving your application. Some landlords may require a higher security deposit.
4. Employment: Certain employers may check your credit history during the hiring process. While a 693 credit score with 2 negative items may not necessarily disqualify you from a job, it is essential to be aware of this possibility.
5. Insurance: Insurance companies may use your credit score to determine your premiums. A lower credit score may result in higher insurance rates.
6. Utilities: Utility companies, such as electricity and gas providers, may also check your credit score. While a 693 credit score may not pose significant issues, the negative items on your report could impact your ability to secure certain utility services.
7. Interest Rates: If you do qualify for credit, you may face higher interest rates due to the negative items on your credit report. This can result in higher borrowing costs over time.
1. Can I improve my credit score with negative items?
Yes, you can improve your credit score over time by consistently making on-time payments, reducing your credit utilization, and addressing the negative items on your credit report.
2. How long do negative items stay on my credit report?
Negative items, such as late payments and collections, generally stay on your credit report for seven years. Bankruptcies can remain on your report for up to ten years.
3. Should I apply for new credit with a 693 credit score and 2 negative items?
Consider the impact of additional credit inquiries on your score. If you need credit, apply strategically and only for essential items.
4. Should I close old accounts to improve my credit score?
Closing old accounts can negatively impact your credit score by reducing your available credit and shortening your credit history. It is generally advisable to keep old accounts open.
5. How can I dispute inaccuracies on my credit report?
If you believe there are errors on your credit report, you can dispute them with the credit reporting agencies. Provide supporting documentation to support your claim.
6. Can I negotiate with creditors to remove negative items?
It is possible to negotiate with creditors to remove negative items in exchange for full or partial payment. However, there is no guarantee that they will agree to do so.
7. How long does it take to rebuild credit after negative items?
Rebuilding credit takes time and effort. It can take several months or even years to significantly improve your credit score, depending on the severity of the negative items and your commitment to good credit practices.
In conclusion, a 693 credit score with 2 negative items can still offer you some credit opportunities, but it may come with higher interest rates and stricter terms. It is crucial to work on improving your credit by addressing the negative items and adopting responsible credit habits to enhance your financial prospects in the long run.