Financial Education

Is 700 a good credit score? (And how to improve it!)

Is 700 points a good credit score? What advantages do you have access to when you build your credit up to this level? How to keep evolving your score? Read this article and find out!

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A better understanding of your credit score and finances

audience at a show
Having a good credit score is like going to a concert and getting an insider’s view. Source: Pixabay

Indeed, think of your credit score as a ticket to a show. So the better this one is, the closer you will be to the stage and the more advantages you will have.

Credit report sheet below a calculator and pen

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Your credit score and credit report can make your financial life easier or more difficult. So understand what they are and why they are so important.

So, is 700 a good credit score? To find out, read the article below!

Why is your credit score so important?

Indeed, someone must have already warned you about the importance of taking care of your credit score. If not (which is strangely common), this is the opportunity to get to know this indicator.

Well, a credit score is a number that tells banks how good a credit user you are. If it’s high, you’re the kind of customer every bank/lender would like to have.

After all, among other things, you are responsible for your payments and don’t accumulate too many loans simultaneously.

So, to attract you, banks offer lower rates and differentiated advantages on your credit card. If your score is low, banks and lenders will look at you “with suspicion”.

In effect, you will continue to be able to apply for credit cards, loans, mortgages, and other banking services. However, you will have to make do with higher interest rates and limited perks on your credit card.

It would be like buying a ticket to a show but being too far from the stage. In fact, now you know the main reason why you should be concerned about your credit score.

However, let us now return to the main question of this article. Is 700 a Good Credit Score? Find out in our topics below!

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Is 700 considered a good credit score?

Credit report score button on virtual screen. Business Finance concept.
After all, is a 700 credit score really good? Source: Adobe Stock

In fact, if your credit score is 700, congratulations: that’s a good score. In fact, there are several methods to calculate a credit score.

Thus, the most common methods are managed by FICO® and VantageScore companies.

However, most banks and lenders most commonly use FICO®-generated scores in customer evaluation. This company created a table to make reading credit scores easier. Check it out below:

  • Bad: 300-579;
  • Fair: 580-669;
  • Good: 670-739;
  • Very good: 740-799;
  • Exceptional: 780-850

Since a credit score of 700 is between 670 and 739, we can say this is a good score. In practical terms, this could mean that you are responsible for using the credit.

However, you may have made minor “stunts,” such as late payments recently. This can prevent you from having an even higher credit score.

Either way, according to Rod Griffin, senior director of consumer education and awareness at Experian, 700 isn’t bad.

However, that score is slightly below the national average: of 716, set in October 2021. In fact, this could have some implications for you.

What can you get with a 700 credit score?

To answer the question “Is 700 a good credit score?” it’s important to understand what products you can access with that score.

Well, it is very likely that with this score, you will not be denied when applying for mortgages, student loans, or personal loans.

However, according to John Ulzheimer, former financial expert at FICO and Equifax, you will not be eligible for the best rates on the market.

According to this analyst, to get the best car loan rates, you need to have a score higher than 720. If you’re looking for a great mortgage, it’s advisable to have a score of at least 760.

When it comes to credit cards, you can find good options. Welcome bonuses and reward programs are at your disposal.

But, cards with better programs and perks still require you to have at least 740 points. So, in summary, we can say that a score of 700 will not restrict your access to any banking service.

However, the doors to the “VIP area” of fees will not be open to you. Even so, you can still find good credit cards. To see a list of relevant options the market offers for people with high scores, see the link below:

How can you improve your credit score?

Fair credit score report with pen and calculator
3 simple and easy tips to improve your credit score. Source: Adobe Stock.

We all know that understanding how to improve your score is more important than knowing if 700 is a good credit score.

Indeed, this should be a concern regardless of your credit score. So, here are some tips on how to do it simply and quickly:

Lower your credit usage rate

The utilization rate is the percentage of credit in use calculated from your available credit rate.

For example, if you have a card with a credit limit of $5,000 and you use $2,500 of that total, your usage fee will be 50%. It is recommended that you do not exceed the percentage of 35%.

Thus, it is very important that you make all payments so as not to accumulate a very high balance on your credit card. Another tip is, when possible, to anticipate payments.

That way, you can keep your usage rate low, which will reflect positively on your credit score.

Become an authorized user

If you know someone with better credit than you, ask to be added as an authorized user. Thus, you will benefit from the good story already built by someone.

To use this strategy, you don’t need to make purchases on the other person’s card or know their password or any other data.

Use a secured credit card

This is a “debt proof” credit card or late payment. On this type of card, you can only use the money you previously deposited. In effect, all your payments will be reported to the credit bureau.

If you think you need to understand more about credit scores, check out the link below. In fact, we made an article with everything you need to know about this subject. Check out our post below!

Closeup of the hand of a man in suit marking excellent from a list of the different ranges of the credit score: excellent, good, fair and poor

What are credit scores? An uncomplicated guide

Did you know that your credit score impacts many parts of your financial life? Learn about the different ranges and how you can start improving your credit score!

About the author  /  José Gonçalo

I started reading about finance only to find better options than savings. Since then, I have never stopped studying finance, and I believe that writing about it is the best way to help individuals feel fulfilled and have a healthy financial life. Today, I balance finance and medical school studies.

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