A 700 credit score typically means you won’t be turned down for important milestones like getting a mortgage or a job. You’re also likely to be fine when a landlord checks your credit to assess whether they should rent an apartment to you.
A 700 score likewise tends to come with the perks we’ll describe next.
Ideal Financing Options
A good credit score opens up various financing options. These include home loans, auto loans, personal loans and the best credit card offers.
A good credit score can also save you thousands of dollars in interest payments. The Federal Funds Rate is a benchmark rate set by the Federal Reserve. This rate dictates the price at which banks can borrow money from the government. Borrowers with a credit score of 700 or higher tend to be offered rates closer to Federal Reserve rates.
Therefore, typically, the higher your credit score, the less you pay on debt expenditures. This can account for thousands of dollars in savings over the loan term.
Those with a lower credit score usually receive rates further above the federal funds rate.
More Buying Power
Good credit and a lower interest rate can increase buying power on a big-ticket item like a mortgage. You can put the money you save on interest payments toward more house (or car, or whatever you desire).
Let’s use mortgages as our example since the interest rate on a mortgage affects the monthly payment. According to ConsumerAffairs, a .25% change in interest affects your home buying power.
Perhaps you have $1,620 each month to spend on a housing payment. With a $50,000 down payment and 8.25% interest rate, you could afford around $266,000 worth of house.
By shaving .25% off your interest rate, bringing it to 8%, you could buy a home that costs closer to $271,000 with $50,000 down and still keep your monthly payment at $1,620.
This savings and increased buying power transfers over to anything you finance. From student loans to car loans, a 700 credit score can help you reap the benefits of lower interest rates.
For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750.
What a 700 credit score can get you. Your credit score is used by lenders to see if you qualify for financial products and to set the interest rate you'll pay. With a 700 credit score, you've crossed over into the "good" credit range, where you can get cheaper rates on financial products like loans and credit cards.
Yes. Assuming the rest of your finances are solid, a credit score of 700 should qualify you for all major loan programs: conventional, FHA, VA and USDA loans all have lower minimum requirements, and even jumbo loans require a 700 score at minimum.
To reach an 800 credit score, you'll want to demonstrate on-time bill payments, have a healthy mix of credit (meaning accounts other than just credit cards), use a small percentage of your available credit, and limit new credit inquiries.
As you can see, a 700 credit score puts you in the “good” or “prime” category for financing, making 700 a good credit score to buy a car. While it's always a good idea to get your credit score in its best possible shape before buying a car, if you're already around the 700 range you will be good to go.
Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
Generally, it takes around 4-12 months to reach the point where you can apply for a loan. It will take a few months to get to 750 if your score is currently somewhere between 650 and 700. However, if you have a credit score of less than 650, it will take more time to improve the score.
You can borrow from $1,000 to $100,000 or more with a 700 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
Consider yourself in “good” shape if your credit score is above the average for people in your age group. Given that the average credit score for people aged 18 to 25 is 679, a score between 679 and 687 (the average for people aged 26 to 41) could be considered “good”.
An 800 credit score shows lenders you are an exceptional borrower. You may qualify for better mortgage and auto loan terms with a high credit score. You may also qualify for credit cards with better rewards and perks, such as access to airport lounges and free hotel breakfasts.
No. With credit scoring, there's nothing wrong with trying to get the best credit score you can, but realize that once you fall into that "excellent credit" range, your precise score may not make much of a difference in your ability to qualify for credit and low interest rates on loans.
A 750 score is considered excellent. You will get among the very best rates on loans and credit cards. Amrita Jayakumar is a former staff writer at NerdWallet and, later, a freelance contributor to the site.
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