What Types of Loan Can You Get With a 700 Score?
Your score comes into the category of Good scores, which range from 670 to 739. The average FICO® score for Americans is 711, which is in the Good range. Consumers with scores in the good range are seen by lenders as “acceptable” customers and may be given a choice of credit products, though not always at the most affordable interest rates.
What can you do with a 700 credit score?
Keep it stable
If you already have good credit, you’re on the right track to raising it. It takes persistence to build your credit, especially if you have a history of delinquencies, missed payments, and bankruptcy, but it will be worthwhile in the long run.
You’ll be able to maintain and even raise your 700 credit score if you keep up your good financial practices, such as regularly monitoring your credit report, keeping debts to a minimum, and paying payments on time.
Pay your maxed-out credit cards.
Your credit score is impacted negatively by having a lot of debt. Due to the negative debt ratio to the credit limit, maxed-out credit cards reflect poorly on credit reports.
Pay down your credit cards with the highest APRs first. The goal is to reduce your credit card use ratio, which is calculated as the sum of all balances divided by the credit limit. Lowering that ratio by paying off debt can help raise your credit score above 700.
Aim for a higher limit
Not everyone can benefit from increasing their credit limit, but if you already have good credit, it can help your rating go above 700. Because it shows the total amount of accessible credit, your credit limit affects the utilization ratio. A higher limit may aid in reducing the ratio and enhancing credit all around.
Regularly check your credit score.
An excellent technique to identify your financial problems so you can develop a sound strategy to address them is to check your credit score routinely.
Additionally, it lets you check for erroneous statements. Send a dispute letter to the information provider or the credit reporting agency to get any errors corrected.
What Credit Cards Can You Get With a 700 Score?
You fall into the good to exceptional credit category if your credit score is over 700, making you a favorable risk for lenders. You’ll notice the shift if you recently left the 600s (considered fair credit). You have access to many credit cards with numerous additional features and advantages. The best credit card deals for people with good credit are listed below:
Capital One Platinum Credit Card
Finding credit cards with the advantage of 700 credit scores can be challenging. Fortunately, you can use many plain vanilla cards to establish credit. One of them is the Capital One Platinum Card. Although this card has no rewards program, there is no annual fee.
Additionally, you’ll be automatically considered for a larger credit limit in as little as six months.
Depending on your credit score, your interest rate may be relatively high; therefore, paying up the entire balance each month is necessary if you don’t want your debt to increase.
For their credit cards, Discover may have relatively fewer credit requirements. Numerous Discover It users claim to have credit scores between 650 and 699. Discover It has no yearly fee and the possibility of significant cash back. The cards are excellent travel cards because they don’t charge foreign transaction fees.
After your first year, it will match all the cash back you have accrued. All new customers are eligible for this deal. With this card, bonus categories receive 5% cash back, switching every three months (up to the quarterly maximum; it requires free activation each quarter)—every other purchase results in a 1% cashback.
Upgrade Cash Rewards Visa®
The Upgrade Cash Rewards Visa® gives up to 1.5 percent rewards on purchases and has no annual, activation, or maintenance fees. Your credit score won’t be impacted by checking your prospective credit limit ($500 to $25,000).
Remember that this isn’t your typical credit card. Consider it a hybrid of a fixed rate line of credit and a Visa cash rewards credit card, even though it can be used anywhere that accepts Visa.
700 Credit Score: Is it Good or Bad?
Even though it is a little below average, obtaining a credit score of 700 officially places you in the good credit score category. Following a generally higher trend in average credit scores over the previous ten years, they reported the average FICO score in April 2021 as 716. What does your score mean in relation to others?
- Your credit score falls between 690 and 719, which is considered good.
- According to credit scoring business FICO, your 700 score is higher than that of 37.2% of consumers.
- According to FICO, 16.4% of consumers scored between 700 and 749 in 2021.
What are the benefits of a good credit score?
Power to Negotiate Loan Terms
With stronger credit, you can get cheaper interest rates and use it as a negotiating tool when getting a mortgage. You must prequalify and check your rate with several lenders to accomplish this. You can then take your rate estimate to various lenders to see if they can provide you with better terms by dropping the interest rate even further or waiving loan costs.
Improve Your Image for Future Employers
Some employers may examine your credit reports as part of a background investigation when you apply for a job. While finding employment, even with less-than-perfect credit, employers may still be wary of late payments and bankruptcy.
The CFPB advises reviewing your credit reports before you begin your job search because of this. You could find errors and missing data by reviewing your reports. Each of the three major credit bureaus offers free credit reports. To find out how go to AnnualCreditReport.com.
You’ll gain a positive reputation.
A person with a good credit score doesn’t need to go very far for offers; the offers find you because your credit score demonstrates that you are a reliable borrower. This is useful if you want to take out a personal loan, refinance existing debt, or switch to a better credit card with your present provider.
Additionally, excellent credit habits follow you to the workplace in addition to credit products. Employers frequently use consumer credit reports to decide who to recruit, promote, and reassign in the states that permit it, mainly if the position entails making critical financial decisions.
Stay away from security deposits for utilities.
A strong credit rating can also help you have your utilities switched on. Utility companies will probably turn on your utilities with little fuss if you have a decent credit score. However, if your credit is bad, they might ask for a deposit from you or even have someone sign a document promising to pay the bill if you can’t, much like getting a co-signer for a loan.
How to build up your credit score?
On-time bill payment:
Your FICO Scores can be severely impacted by late payments and collections, even if they are only a few days late. Use the payment reminder feature if your banks’ web portals allow it. Consider signing up for automatic payments through your credit card and loan providers to deduct payments from your bank account automatically.
Verify the accuracy of your credit report.
Examining your credit record for any mistakes that could hurt your score is one strategy to raise it quickly. If you are successful in disputing them and getting them eliminated, your score can go up.
Credit reports are crucial because approximately 25% of Americans have a mistake. Misreported payments and duplicate or fraudulent accounts are a few common mistakes to watch out for.
Don’t open too many new accounts.
A hard inquiry resulting from applying for new lines of credit can harm your credit score. So, attempt to reduce the number of times you apply for new accounts if you want to raise your score. A further component in determining your credit score is the average age or length of your credit history, which can be decreased by opening a new line of credit.
Consolidate your debts
It can be advantageous for you to obtain a debt consolidation loan from a bank or credit union and use it to pay off all of your outstanding bills if you have a number of them. If you can acquire a loan with a reduced interest rate, you’ll be able to pay off your debt more quickly because you’ll only have one payment to worry about. This could raise your credit score and lower your credit use percentage.
Can I buy a home with a 700 credit score?
You can buy a house if your credit score is in that range since most mortgage lenders only want a credit score of 700. Having a credit score of 700 won’t ensure approval, though, since lenders consider other factors besides credit score when determining your eligibility. You might not be able to get the greatest mortgage interest rate with a credit score of 700, so you should still focus on raising it to reduce your interest costs.