700 credit score: is it good enough?
Get the scoop on how a 700 credit score can impact your life, from getting approved for a loan to your interest rates.
by Sabrina Paes
What is a good credit score? Find out if 700 is your number!
Are you wondering if a 700 credit score is good enough? With so much information about credit scores, it can be hard to decipher what a “good” score looks like.
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Whether you want to take out a loan or qualify for different services, your credit score plays an important role. Learn more!
What are the credit score ranges?
Credit score ranges are parameters used to measure a person’s ability to pay their debts. The higher the score, the greater the chances of paying debts.
Furthermore, two models are used when determining whether a borrower is likely to pay their loans in full and on time: the FICO® Score and the VantageScore.
These models report that using the FICO scoring system, a borrower’s credit score can range from 300 to 850. These scores are broken down into five different tiers:
- Very Poor Credit (300-579);
- Fair Credit (580-669);
- Good Credit (670-739);
- Very Good Credit (740-799);
- Excellent Credit (800-850).
However, what is considered a good credit score? In this sense, 700 is generally seen as a good mark. This credit score qualifies one for travel reward credit cards and low-interest rates.
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Is a 700 credit score good enough for you?
Generally speaking, 700 is a good credit score. After all, you get good credit card options and access to different types of low-interest loans.
Therefore, it may be enough for most people. However, if you need loans or credit cards with very high amounts, 700 may not be enough.
So, it all depends on what your goals are. However, you can follow some tips and improve your score.
What can you get with a 700 credit score?
Possessing a 700 credit score is a huge achievement as it marks the boundary between having “good” and “excellent” credit.
With this 700-good credit score, you can expect to be offered cheaper interest rates when applying for financial products.
That’s because lenders view 700+ scores as an indicator of trustworthiness and the likelihood that you’ll pay them back.
Therefore, not only will you qualify for various financial products, but you’ll get lower interest rates compared to those with lower scores. Check what products you can obtain.
Securing a 700 credit score is one of the initial steps toward home ownership.
With this generous score, they can apply for a loan and search for higher-value homes with “jumbo” mortgages.
Ensure you have a 700 credit score, and shop around lenders for the best rate.
Over time, this small move can save thousands of dollars and allow for a steady investment in home ownership.
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Getting a car loan is expensive, and having good credit scores of 700 or higher can make the process much easier.
This fact is further evidenced by a recent Experian report released in 2022. It reveals that 65% of cars bought on loan were financed for borrowers with 661 or higher.
Additionally, the average interest rate for a new car was 4.03%, and 5.53% for a used car for buyers whose scores were in the 661-780 range.
700 is a good credit score and can open up many opportunities for credit cards.
You will have plenty of options if you are lucky enough to have a 700 or higher credit score.
Do your research and read the details carefully, as each application may temporarily cause your score to drop.
Finding the right card is an important step to financial stability and success.
How to improve your credit score even more?
If you already have a good credit score of 700, congrats; you’re in the right range!
But if you want to improve your score even further, try and increase your payment history or length of credit history if possible.
Most credit bureaus research and track those four factors and can improve your overall ratings when managed properly and consistently.
Paying bills on-time every month is one way to help improve your credit score.
Finally, pay attention to how different types of loans are reported. Considering all the above can help improve your rating significantly over time. Check our tips!
1. Improve your payment history
A good payment history is one of the surest ways to improve your credit score and maintain a positive outlook. That is why it is important to pay on time, every time.
Even one late payment can result in a significant drop in your score.
Set up automatic payments for as many bills as possible to avoid the risks associated with missing payments.
This will ensure you are never late on a payment and safeguard your credit rating in the long run.
A little effort now can provide peace of mind and improve your financial profile for years ahead.
2. Use credit sparingly
Achieving and maintaining a low credit utilization rate is one of the best ways to improve your credit score.
Aiming for a rate below 30% is ideal, but experts recommend keeping it at or below 10%.
If increasing your spending won’t negatively affect other areas of your financial health, upping your credit limit can effectively reduce utilization and improve your score.
Before doing this, decide if opening another credit card may be preferable to simply asking for an increase from your existing issuer.
3. Avoid new credit applications
If you want to improve your good credit score of 700, avoiding applying for too much credit in a given time is important.
While it might provide momentary financial relief, applying for credit several times in a row will result in multiple hard inquiries on your credit report.
To improve your score and get back on track, it’s best to space out applications by around six months.
This gives you enough time to contain the damage and learn how to improve your situation to make smarter financial decisions.
Do you need help building business credit? Then check out the following post. It’ll help you increase your score fast!
A guide on building business credit
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