695 Credit Score? Here’s 5 Reasons Why It Sucks

No offense, but if you have a 695 credit score, that kinda sucks.

I know from experience what it’s like to have a credit score in this range. When I started my journey to better credit, my score was 666 (yes really!).

Whether your credit score is 695, or 666, generally that puts you in the same category. Both of those scores are considered “Fair” on the scale (see image below).

It’s not a major disaster, but it still sucks. According to Experian, the average FICO┬« score is 703. So if it’s any consolation, you’re not far from being “average”.

But compared to having a score of 725+, a 695 credit score sucks.

Here are the top 5 reasons why:

1. Higher Interest Rates

Your credit score indicates the likelihood that you will default on a loan or credit card. The lower your credit score, the riskier you appear as a borrower. Lenders and creditors make you pay for this risk by charging you a higher interest rate. This helps mitigate the higher risk they are taking by lending money to you.

With a 695 credit score, it’s likely that you can obtain some sort of credit card and maybe even certain installment loans. But one thing is for sure, it will cost you significantly more money in interest than it would if your score was 725 or above.

2. Loan Application Denied

Creditors will accept a certain amount of risk. But if your score is too low, or your credit history isn’t well established, they may deny your application. With a sub 700 credit score, your chances for being denied the loan or credit you are seeking is much higher.

This includes auto loans, personal loans, credit cards, etc.

3. Rental Application Denied

Many people don’t realize that landlords check credit before approving a rental application. Having a low credit score can make it significantly more difficult to rent an apartment or house.

If you are able to find a landlord who doesn’t do credit checks, or will rent to you regardless, your deposit and/or rent may be higher because of it.

4. Cell Phone & Utility Deposits

Companies that provide services such as phone, cable, cell phone, and electricity will often check your credit as part of the application process. If your credit is not great, you may have to pay a security deposit to establish service in your name, even if you have never missed a utility or cell phone bill payment.

While a credit score of 695 may be good enough for some of these companies, it all depends on their minimum credit score requirements.

5. Employment Application Denied

Some jobs require you to have a good credit history. It’s possible for to be turned down for a job because of a bad credit file. Things that can increase this risk are high debt, bankruptcy, or outstanding bills.

Employers don’t necessarily check your credit score, they are more focused on significant negative marks on your credit report. These negative items could indicate poor job performance.


The bottom line is having a 695 credit score (or anything under 700), will cost you big money on interest, and will likely keep you from getting the best credit cards and loan rates available.

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