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700 Credit Score: Is It Good or Bad?

700 Credit Score
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updated: July 3, 2024

Credit scores are a major factor in your financial life. They can affect the types of credit cards for which you’ll be approved, the interest rates you’ll receive, and much more. FICO scores fall anywhere from 300 to 850. So what does it mean to have a 700 credit score?

What does having a 700 credit score mean?

Having a 700 credit score isn’t going to open up the door to most premium credit cards or the lowest interest rates on loans, but it does provide you with options. According to FICO, credit scores that fall between 670 and 739 are considered “good” scores. Your 700 credit score is slightly below the national average of 714 but firmly ahead of the “fair” range, which runs from 580 to 669.

According to Experian, only 9% of consumers with good credit scores are likely to become delinquent on their loans. This provides some reassurance to lenders that borrowers with good credit scores will be able to make their payments, allowing them to offer lower interest rates than for  borrowers who have a “fair” score..

What types of credit cards can you get with a 700 credit score?

Having a 700 credit score will allow you to move away from secured credit cards. There will be credit cards available to you with which you can earn rewards and receive attractive benefits. Let’s look at three options.

Citi® Double Cash Card

If you’re looking for a cash back credit card, the Citi® Double Cash card is a good option. You’ll earn 1% cash back on purchases and another 1% cash back when you make a payment on your account. There is no annual fee, and the card comes with an introductory 0% annual percentage rate (APR) on balance transfers for 18 months.

Capital One Venture Rewards Credit Card

If you’re more interested in travel rewards, you could choose the Capital One Venture Rewards credit card. You’ll earn a bonus of 75,000 miles after you spend $4,000 within three months of opening your account and get 2x miles on all purchases. While this card does come with a $95 annual fee, it also has several perks beyond its rewards. You’ll receive up to a $100 credit for Global Entry or TSA PreCheck® and two complimentary Capital One lounge passes.

Chase Sapphire Preferred® Card

The Chase Sapphire Preferred® card is another attractive option for travelers. You’ll receive 5x points on travel purchased through Chase Ultimate Rewards, 3x on dining, 2x on other travel purchases, and 1x on all other purchases. 

You’ll also receive 60,000 bonus points after spending $4,000 on purchases within the first three months from account opening and a complimentary DashPass from DoorDash through Dec. 31, 2024. The card charges a $95 annual fee.

What will you get approved for with a 700 score?

A 700 credit score will get you access to unsecured credit cards as well as the following loan products:

Loans

Unless you have the cash available, you’ll be using an auto loan to purchase your next car. With a credit score of 700, you’re likely to be approved. The biggest question will be what interest rate you’ll receive. 

As of April 22, 2024, the interest rate you can expect to pay on a 60-month auto loan for someone with a 700 credit score is 8.643%, according to FICO. By comparison, someone with a 750 credit score would have access to an average interest rate of 7.504%.  

Mortgage

Conventional loans are typically available to anyone with a credit score of 620 or above. However, the higher your credit score is, the greater your chances for approval will become, and the better your interest rate will be. In addition to conventional loans, [Federal Housing Administration (FHA) home loans are available to borrowers with a credit score as low as 500. However, 500 requires a down payment of 10%. You must have a score of at least 580 before you can put down only 3.5%. 

Rentals

If you’re looking to rent a home, approval decisions aren’t quite as straightforward as they are when you’re applying for a loan through a bank. Most landlords will pull your credit report to assess your ability to make payments each month. 

Even though most landlords don’t have a set credit score that guarantees approval, a 700 FICO score is usually going to offer high odds for approval. Plus, if you have positive payment history and a low debt-to-income ratio, your chances of being approved will be even higher.

What will a 700 score impact?

Here's how having a credit score of 700 will affect some key financial aspects of your life. 

Available credit cards

As your credit score increases, you’ll have a larger selection of credit cards from which to choose.  You’ll have the opportunity to apply for cards that provide cash back or travel rewards and some that will even offer an introductory 0% APR on purchases.

Auto insurance rates

Your auto insurance rates are determined by a credit-based system (unless you live in California, Hawaii, or Massachusetts, where credit-based systems are illegal). Insurers will look at your payment history and length of credit when determining how much of a risk you’ll be. As long as you’ve been paying your bills on time and you have a good mix of credit accounts, you’ll likely qualify for good rates. 

Interest rates

If you’ve recently improved your credit score from 650 to 700, you’re going to notice a difference in the interest rates for which you’ll qualify. For example, as of April 22, 2024, the expected rate for a 30-year fixed rate mortgage with a 700 credit score would be 7.05%, according to FICO. However, someone with a credit score of 650 would only qualify for an interest rate of 7.871%. On a $300,000 mortgage, that difference would mean nearly $60,618 in interest saved.

How to improve your 700 credit score

If you want to continue to improve your credit score, giving you access to premium credit cards and the best rates, there are steps you can take. Here are a few things to work on.

Credit monitoring

It’s difficult to improve your credit score if you don't have a way to monitor your progress. Paying for a credit monitoring service such as myFICO will allow you to track your score on a monthly basis as well as understand what’s continuing to affect your score over time. 

Budgeting apps

Your credit score is made up of several factors, including how much of your available credit is being used. Most credit experts recommend keeping your credit utilization ratio below 30% at any given time. 

Sticking to a budget can help keep your credit balances from rising too high. Budgeting apps such as Monarch Money give you the ability to track your spending and know where each dollar is going every month.

Automatic payments

The biggest factor in your credit score, making up 35%, is your payment history. Late payments can have a significant impact on your credit score and stay on your credit report for seven years.

Most credit card issuers give you the ability to set up automatic payments. You can choose to pay the minimum amount, the statement balance, or the entire balance. By making automatic payments, you’ll never make a late payment again.

Beyond your credit cards, you can use Cash App to set up automatic payments on your other monthly bills, including your utility bills, subscriptions, and other installment loan payments.

Avoid closing credit card accounts

Your average length of credit accounts for 15% of your FICO score.. This means it’s important to keep your credit cards open. If you have a card with an annual fee and you decide the fee isn’t worth it, call the issuer and ask about downgrading. Many times you can move from one card to another within a credit-card “family” without affecting your credit length.

Get credit for your bills

It used to be that you would only be able to build your credit through credit cards and loan products. However, services such as Experian Boost give you the ability to be rewarded for paying utility bills, streaming services, and even rent.

TIME Stamp: A 700 credit score may be ‘good,’ but you can and should try to improve it

A 700 credit score is technically considered a “good” credit score. It will give you the ability to open unsecured credit cards that come with rewards and attractive benefits. It will also help you receive better-than-average rates on loan products. However, by improving your credit score even more, you cab further reduce rates on all your debt..

Frequently asked questions (FAQs)

How much can I borrow with a 700 credit score?

With a 700 credit score you’re likely to be approved for most loan products, but your loan amount and terms will be lower than someone with a 750 or 800 credit score. The exact amount of how much someone can borrow depends on multiple factors, including debt-to-income ratio.

How long does it take to get a 700 credit score?

Building good credit takes time. Creditors want to see good credit habits over a longer time period before awarding high credit scores. However, with good payment history and lower credit balances, it’s possible to get a 700 credit score within a reasonable amount of time.

How do I raise my credit score to 700?

There is no magic formula that raises your credit score to a specific number. However, there are a number of ways to get a higher score than you currently have. In particular, you need to display trustworthy financial behavior. Pay your bills on time consistently, perhaps by using automated payments if you tend to be forgetful. Create a household budget and stick to it religiously. Don’t allow your credit utilization ratio to exceed 30% and aim for a much lower one than that. Finally, to see if and how your good habits are having an effect, use a credit monitoring service to track your score on a monthly basis.

The information presented here is created independently from the TIME editorial staff. To learn more, see our About page.

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