Is 700 a Good Credit Score?

Have a credit score of 700? Congratulations – that’s a good score.

Credit scores range from 350 to 800, and there are brackets within that range. The bracket from 670 to 739 is considered “Good.” So, in short, a FICO score of 700 is a good score.

700 is also very close to the average FICO score for all consumers in the United States with a FICO score. The average US credit score is 704. So if your score is currently sitting at a 700 or there abouts, you are doing pretty well.

Is 700 a good credit score? Yes.

Could you be doing better? Also yes.

The Perks of a Good Credit Score

Once your credit score goes above 670, you are considered an acceptable borrower by banks. This means you will qualify for more personal loans, auto loans, mortgages and other types of loans. Additionally, you will be offered lower interest rates on those loans.

Interest rates on loans are a reflection of lender’s perceived risk. Lenders like to feel safe when they loan money, so individuals with bad credit, or even fair credit, have to pay more for their loans because the bank or lender worries more about them paying the money back.

With a good credit score, you are likely to see other perks from lenders including:

Pre-approval offers from credit cards
Low interest rates on personal loans
Fast approval process on mortgages
Approval for ultra-low promotional offers on auto loans
Approval for credit cards with impressive introductory offers

The trick when you have a good credit score is keeping that way – open too many of those new pre-approved accounts and your credit score will start to drop.

Improving Your Credit Score

If you have a good credit score, you already are seeing a lot of financial perks. You can breathe easily with a score of 700 knowing that you will likely be approved for the loan you are requesting. But a 700 is still a long way from the top scores.

Scores fall into brackets. A poor credit score is anything below a 580. Fair credit scores sit between 580 and 669. Good scores are between 670 and 739.

But there are two categories above “Good.” Very good credit scores range from 740 to 799 and exceptional credit – the highest possible category – is a score over 800. A good score of 700 may be enough to feel confident in getting a loan approved, but there are even more perks to boosting your score into the Very Good or Exceptional range.

How to Raise My 700 Credit Score

If you have a credit score of 700, you are already using your credit well. You are making payments on time and you likely have a variety of credit accounts. But your financial habits and budgeting likely aren’t perfect, or haven’t been for very long, or your score would be even higher.

To bring your score up from a 700, you will need to finesse your credit usage, not repair it. Consider a few possibilities.

Lower your total debt

Your credit score reflects a few different things about credit card debt. It measures how much available credit you have and how much of that available credit you’ve spent. If you’ve maxed out or carry a large budget on multiple cards, that practice alone may be holding your credit score down.

You’re making your payments on time, but you’re potentially stretched thin – at least it looks that way to banks. The credit bureaus consider that too much debt. Even if you’re making every payment on time.

Consider debt consolidation to pay down all your debts. Your good credit score will help you find a low interest rate on a personal loan. Use that loan to pay off all of your credit cards, but leave the cards open with a zero balance.

The new debt will ding your credit score, but the paid off credit balances will improve it again. Even better, having a smaller set payment every month will help you pay off the debt more quickly, especially if you pay more than the minimum. You’ll be debt free at the end of the term payments on the personal loan, and that will be a massive bump to your credit score.

Leave your credit alone

You don’t have to apply for every credit card offer that comes across your door. Nor do you need to use every credit card you have. One of the best strategies to boosting your credit score is to simply not use much of your credit. Having it is good. Using a credit card to buy small things and paying off the balance monthly is good. Opening new cards just because you can, can be bad.

Every new credit card you open results in a credit check. These hard inquiries on your credit drag your score down and send a message to the credit bureaus that you might be in financial distress. Shop around for the best credit card offers or loan offers. But then apply only when you need the loan. If you apply to multiple lenders to compare offers, do so in a matter of days. The credit bureau will give you some grace on that as they recognize the importance of finding low interest rates.