Maybe one of the most important statistics in your life as a consumer is your credit score. It thus significantly affects your chances of getting credit cards, mortgages, loans, and almost every other feature of personal credit. But where does this 700 credit score place you? Is this a decent credit score or might it be deemed low? We will discuss in this post what a credit score of 700 means and maybe some actions you might take to raise it even further.
What is a Good Credit Score
Let's start with first seeing what a 700 credit score denotes. FICO is the most often utilized credit score model; its range is 300 to 850. Here is a general classification of the many score ranges: Broadly speaking, these are the classification of several score ranges:
800-850: Exceptional 740-799: Very Good 670-739: Good 580-669: Fair 300-579: Poor
A score of 700 falls so far beneath the "Good" category. This shows that you have a solid mix between revolving and installment credits and usually pay your credits in full and on schedule. Not fantastic but above the industry average and enough to get most lending firms greater interest rates. In my instance, with minor changes, I may have possibly been challenged for the "Very Good" category in the mid-700s.
In essence, therefore, a 700 credit score is excellent and you are performing significantly better than over 65% of the population. Still, there is room for improvement.
Benefits of Being in a 700 Credit Score Range
While not perfect, a credit score of 700 comes with some nice benefits:
- Access to Low Interest Rates: You will get approved for prime or near-prime interest rates on loans and mortgages hence, will save you some money. While 800+ scores will be rewarded with the best rates, 700 is considered to be a competitive mark.
- High Approval Odds: This is because you will have a good credit standing hence lenders will be willing to offer you most credit products. Look forward to high rates of card and loan approvals.
- Good Terms and Limits: Credit card companies will reward you with better rewards, higher credit limits, and balance transfer facilities. This provides more flexibility.
In conclusion, when credit is needed, 700 allows one to access credit at a reasonable cost. However, it is still worth trying to improve it if you can somehow push it a little higher. But, you are already doing very well than many people out there.
Possible Measures to Take to Achieve A 700+
While 700 is good, here are tips to increase your score and access even better loan terms: While 700 is good, here are tips to increase your score and access even better loan terms:
1. Pay Down Balances: Maintaining one’s balance at 30% or below of the credit limit would help raise the score in the long run. Make payments on cards and allow a lower credit utilization ratio to be reflected on credit reports.
2. Mix Up Credit Types: Basically, it is good that you can manage both revolving and installment forms of credit if any are available. If you only have credit cards, a personal loan or even an auto loan may be more suitable for you.
3. Limit Hard Inquiries: Multiple credit checks when shopping for loans can cause your score to drop for a while. Should only be used in cases where you are serious about being approved for a loan.
4. Correct Errors: Cross each item stated on your credit report. In this case, you will note errors from any of the lenders and you will need to write a dispute letter to correct the mistakes.
5. Never Miss Payments: Timely payments are a must, and more so, you need to have good credit scores. Automate payment reminders to ensure that payments are made monthly without fail and that at least the minimum amount due is paid.
Start working on the above areas from today and it makes sense to achieve an improvement in your credit score of 50-70 points within less than one year. Before you know it, you could be in the ‘Very Good’ league!
The Takeaway – A Credit Score of 700 is Good
A credit score of 700 is a good credit score in the industry that allows you to enjoy low interest rates. Here is your proof that you understand how credit works and you are willing to handle it appropriately. Although it is always better to try to get a higher score, at least be proud that the current score is sufficient to give you what you want.
It is safe to use credit sparingly, paying the balances in full each month and ensuring that credit utilization does not exceed 30%. What it means is that you can let your score rise gradually by doing more of those positive habits, and this will help you avoid anxiety. But for now, this 700 credit score is providing you with a lot of benefits that you can get.
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