681 Credit score: What You Need to Know in 2025

Who Has a 681 Credit Score?

Credit scores generally improve with age, as individuals have more time to establish a positive payment history and build a longer credit file. Based on 2023 data from Experian, the average FICO score for each generation is:

• Generation Z (ages 18-26): 680
• Millennials (ages 27-42): 690
• Generation X (ages 43-58): 709
• Baby Boomers (ages 59-77): 745
• Silent Generation (ages 78+): 760

Credit Cards With a 681 Credit Score

A credit score of 681 places you in the "fair" credit range, which is a decent starting point for getting a credit card. While you'll likely be approved for a variety of cards, you may not qualify for the most premium options that offer top-tier rewards and the lowest interest rates. Lenders might also offer you a lower credit limit or a higher APR until you've demonstrated a consistent history of responsible use.

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Kudos offers AI-powered tools like Dream Wallet, which analyzes your spending habits to provide personalized credit card recommendations. These tools also offer insights into how a new card might affect your credit score and whether annual fees are justified for your financial situation, ensuring you find a suitable match.

Auto Loans and a 681 Credit Score

A 681 credit score places you in the 'prime' borrower category, meaning you'll likely be approved for an auto loan. However, you won't qualify for the lowest interest rates, which are reserved for those with super-prime credit.

• Super-prime (781-850): 5.25% for new cars and 7.13% for used cars
• Prime (661-780): 6.87% for new cars and 9.36% for used cars
• Non-prime (601-660): 9.83% for new cars and 13.92% for used cars
• Subprime (501-600): 13.18% for new cars and 18.86% for used cars
• Deep subprime (300-500): 15.77% for new cars and 21.55% for used cars

Mortgages at a 681 Credit Score

With a 681 credit score, you are in a good position to qualify for several major mortgage types. This score generally meets the minimum credit score requirements for conventional, FHA, VA, and USDA loans. While you have multiple options, you may find it difficult to get approved for a jumbo loan, as lenders often require a score of 700 or higher for those larger mortgages.

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However, your 681 score will impact your loan terms. You will likely face a higher interest rate and private mortgage insurance (PMI) premiums than borrowers with scores in the 700s. While your terms will be better than those offered to applicants with scores in the low 600s, improving your score before applying can unlock more favorable rates, saving you significant money over the life of the loan.

What's in a Credit Score?

Figuring out what goes into your credit score can feel like trying to solve a complex puzzle, but it generally boils down to a handful of key elements. The most common factors include:

• Your payment history, which tracks whether you pay your bills on time, is the most significant factor.
• Credit utilization, or the amount of credit you're using compared to your total available credit, also plays a major role.
• The length of your credit history demonstrates your experience with managing credit over time.
• Having a healthy mix of different types of credit, such as credit cards and installment loans, can positively impact your score.
• Finally, recent credit inquiries, which occur when you apply for new credit, are also taken into account.

How to Improve Your 681 Credit Score

Your credit score plays a crucial role in your financial life, but it's not set in stone; with consistent effort, it's possible to improve your score using proven methods to build a healthier credit profile. For those with a 681 score, focusing on a few key areas can help you climb into the 'very good' or 'excellent' tiers.

• Reduce Your Credit Utilization Ratio. This ratio is the second most important factor in your score, so keeping your balance below 30% of your limit can provide a significant boost. For a 681 score, lowering utilization is a powerful strategy to quickly move into a higher credit tier.
• Establish Automatic Bill Payments. Payment history is the single biggest component of your credit score, so setting up automatic payments ensures you never miss a due date. This builds a consistent, positive history that is essential for improving your score.
• Diversify Your Credit Mix. Lenders like to see that you can responsibly manage different types of debt, like credit cards and installment loans. Adding a different type of credit can strengthen your profile and demonstrates financial versatility.
• Limit Hard Inquiries. Each hard inquiry for new credit can temporarily dip your score, so it's wise to be strategic. Spacing out applications and using prequalification tools helps protect your 681 score from unnecessary dings while you work to improve it.

To help you find the right credit cards to build your score and maximize rewards, the Kudos browser extension offers personalized, data-driven recommendations.