700 Credit Score: Is It Good or Bad?

May 5, 2022 | 0 comments

A 700 credit score is considered a high score within the standard Credit Score range, ranging from 300 to 800.

About 9% of consumers with Good credit Scores are likely to become seriously delinquent in the future.

700 credit score

How does your score compare to other scores?

  • You’re in that high credit score range from 690 to 719.
  • Your score of 700 is higher than 37.2 percent of the population as per credit scoring FICO, a company that scores credit.
  • FICO states that 16.4 percent of people will have scores of 700-749 by 2021.

8 Benefits of a Good Credit Score

What Are the Benefits of a Good Credit Score?

The advantages of having a good credit score can range from lower interest on credit card rates to lower insurance rates.

Because credit scores are based on the information you have on your credit reports, a higher score indicates a healthy credit score. It could be an important factor in benefiting from these eight advantages:

1. Get Better Rates on Car Insurance

The first thing to consider is car insurance. Certain insurance companies might use your credit score to make various choices when you apply for insurance.

As per the CFPB according to the CFPB, insurance companies may make use of your credit history to determine whether or not to accept your application or what amount to cost you. After you’ve been taken as a customer, they can examine your credit report to help determine whether they should increase your rates or refuse to renew your insurance.

2. Save on Other Types of Insurance

Businesses that offer other types of insurance, such as home insurance, will also be looking at your credit score.

It’s because insurance companies could require the same information as other lenders seek. This could include your record of paying your bills on time and the debt you have to pay. The information insurance companies collect about your credit history can aid them in determining how much you’ll have to pay for insurance premiums.

3. Qualify for Lower Credit Card Interest

If you are applying for a credit card, the credit card company will verify your credit score. If you’re approved, a high credit score can be a factor in obtaining things such as the less expensive APR. (APR).

What is the definition of an APR? it is the amount you pay to borrow funds: “For credit cards, the interest rates are usually expressed as a yearly rate. This is known as”the annual percentage rates (APR).” Having a good credit can be beneficial when making your APR because “credit card companies usually provide the lowest rates to those with the best credit scores.”

A good credit score could be an important factor when you’re looking to upgrade or apply for an additional credit card, which offers better rewards and benefits.

4. Get Approved for Higher Credit Limits

It’s been a while since you learned that having good credit can enable you to get lower interest rates on credit cards. This could also help you obtain a greater credit limit for your credit cards.

Additionally, a good credit score could aid in getting larger loans from banks, for example. A high credit score could indicate to lenders you’re a great credit risk, they could be willing to loan you more cash.

5. Have More Housing Options

The place you live in will have a huge impact on the quality of your life. Credit score can be a big help in this case as well. This is because landlords will examine your credit score before allowing you to lease the apartment.

A good credit score can also assist you in obtaining a mortgage on a home and also a low interest. The CFPB advises, “The better your credit background is, the more likely you’ll be to get a favorable interest rate on the mortgage.”

6. Get Utility Services More Easily

Your credit score could be considered when you establish accounts for utilities, such as internet or electricity. Based on the Federal Trade Commission, “Getting utilities services…has much to do with your credit score. The better your credit score and the better your credit score, the easier it will be to access services.”

A good credit score can be a sign that a utility company may not need a security deposit.

7. Get a Cell Phone Without Prepaying or Making a Security Deposit

If you’re not a credit-worthy person, certain mobile phone companies might require an initial security deposit or require to prepay before creating your accounts. However, having a good credit score can aid you in avoiding those upfront charges.

8. Look Better to Potential Employers

If you are applying for a job, certain companies might look over your credit report to conduct background checks. Although it is possible to find a job even with credit scores that aren’t great, employers may consider things like late payments and bankruptcies as alarms.

This is why the CFPB recommends that you check your credit report before looking for employment. A thorough review of your credit reports can aid in identifying errors or missing data. You can obtain complimentary credit scores from all of the three major bureaus. Visit AnnualCreditReport.com to learn how.

Strategies to help you build your credit score to 700

You’re likely to have good credit habits to get your 700 credit score; however, many ways to get it up.

A good score (720 or more) will get you the highest rates. The good thing is that it’s not that any effort to improve your credit score if you’re already in good standing.

Pay attention to these factors that affect your credit elements :

1. Payment history

One late payment could ruin your credit score. Make sure you set up autopay for your credit cards and other bills to reduce the possibility of late payment.

2. Credit utilization

Credit utilization is how many credit limits are in use.

Try to utilize 30% or less of the credit limit of any card. The lower limit is preferred, but the lower is better. A utilization rate of less than 10% is the hallmark of those with the highest scores, as per VantageScore, the primary rival to FICO.

You can contact your credit card provider for a more significant limit or consider creating a new credit account. If you do, make sure not to increase your spending. You’ll miss out on the benefits of the higher limit, which can bring down utilization.

3. The length of credit history

Remember that credit scores assess your potential risk as a buyer. The longer you’ve used credit, the more the average age of your accounts, and the better it is likely to be for your credit score. A longer track record provides more information to estimate your risk.

Don’t close credit cards unless you have an urgent need, such as a high annual cost. You could also consider switching to a better one from the same issuer.

4. Credit applications

When you make a credit application, you’re likely to receive an investigation of your credit. So, you must spread out your applications for credit by approximately six months. Each one could knock some points off your score.

5. Credit mix

Mixing installment loans with fixed monthly payments for a specific period and revolving credit like credit cards will improve your credit score.

What kind of 700 credit score will it bring you?

Lenders utilize the credit score to determine whether you’re eligible for financial services and the interest rate you’ll have to pay.

With a credit 700 score, you’ve crossed the “good” rating range for credit, which means you’ll be able to receive lower rates on financial services like credit cards and loans.

1. Car loans

According to a report from 2021 published by the credit bureau, Experian, about 65percent of the financed cars were for those who had scores of 661 or up. The average rate for used vehicles was 5.49 percent for those in the 661-780 category. The average interest rate on an unowned car was 3.48 percent.

2. Home loans

Credit scores are just one of the many factors that affect mortgage interest rates. A credit score of 700 is sufficient to get a mortgage. You may also find mortgage lenders willing to consider you for houses with a higher value that requires “jumbo” loans. A reasonable rate could reduce your monthly payments by millions of dollars throughout the mortgage.

3. Credit cards

While searching for the right credit card that meets your requirements, be aware of the required score. Because each application could briefly knock just a few points off your score, you need to be sure that you’re likely to get approved. However, you’ll find numerous credit cards to get 700 points.

4. Personal loans

Similar to other loans, having a better credit score can aid you in getting a lower rate of interest.

Does it affect a 700-point score when a payment is late?

It’s crucial to know that making a payment one or two days late that is past the due date isn’t necessarily a problem. You could be charged an extra fee for late payment, or the credit card issuer may increase your interest rate.

But, letting your bill run for 30 days overdue and beyond could make your score fall: One late payment could take 100 points off a credit score, the perfect one.

The exact amount of score loss the potential victim might experience depends on the various factors that make up your credit score. However, it’s most likely a problem; therefore, pay attention to this vital scoring element.

Frequently asked questions

What is the maximum amount I take out a loan with a 700 credit rating?

Lenders base their decisions on a range of variables. Your credit score is just one of them; therefore, it’s impossible to determine how much you can borrow.
Lenders are interested in knowing your earnings, the amount of debt you have already, your credit history, and more.

How can I increase my score to 700?

In general, adhere to the fundamental “recipe” to manage your credit score: Pay the most significant attention to paying each charge on time and using 30% or less of your credit limit. Two of these factors can have the most significant impact on your credit score.
You could also explore various techniques for increasing your credit score quickly :
Pay your credit cards before the end of the billing cycle or make smaller payments during your billing process.
Ask for higher credit limits.
Regularly review your credit reports with each of the three credit bureaus to look for errors dragging your score back. Redress any mistakes you spot