How good is a 700 credit score, and should you try to raise it? Well, you may be surprised to know that it’s actually a good score, and it can be beneficial to you in the long term! Here’s what you need to know.
Is 700 a fair credit score?
FICO scores range from 300 to 850, with 700 being in the “good” category. So it’s safe to say that a 700 credit score is fair. In fact, it’s better than fair!
As it stands, here are the average credit scores based on age range:
- 18-23: 674
- 24-39: 679
- 40-55: 698
- 56-74: 736
- 75 and up: 758
Based on these scores, if you’re right on the dot or have a higher score, you’re in good shape. If your score is lower, it may be worth it to work on raising it.
What is an average credit score 2022?
Based on 2021 studies, the average credit score is now 716, which is five points higher than in 2020 (which was 711). So the average credit score is rising!
What does a 700 credit score give you?
With a 700 credit score, and being in the “good” credit range, you’ll be able to get cheaper rates on items like loans and credit cards. And, it will also qualify you for a mortgage and other loans that typically require a “good” score or higher.
Is 700 a good credit score to buy a house?
Yes. Most lenders require a credit score of at least 620. But, this often comes with higher interest rates. With a 700 credit score, you’re more likely to get a lowered interest rate.
What is the average credit score to buy a house?
The average is around 650. But it’s actually ideal to have a score of 740 or higher if you can. This could help you with a lower down payment, lower interest rate, and can help you save on private mortgage insurance if you can’t put 20% down.
Can you buy a car with a 700 credit score?
And you’ll usually get a lower rate and lower payments. Just keep in mind that you’ll most likely still need a down payment and you may want to haggle a bit to get a better payment plan.
How do I get my credit score to 800?
Basically, you’d need to keep doing what you’ve done to get to 700. It’s significantly more difficult to get to a perfect score than it is to reach a “good” credit score. This is because of the fact that there are only so many things you can do after reaching a decent status.
In order to keep a decent score, and grow it (eventually) to 800, you’ll want to focus on the main items that affect your score as a whole.
- Payment history — Your payment history makes up 35% of your score. In other words, do you pay your bills on time? If not, this needs to be your main focus, as it’s the biggest percentage.
- Amount owed — How much you owe makes up 30% of your score. You want to keep your credit utilization lower. For example, having three credit cards and maxing them all out can drop your score significantly. Try to keep credit cards at 30% or less utilization, and focus on paying off debts like car loans and student loans as fast as possible.
- Credit history length — This accounts for 15% of your FICO score, the 3rd most important piece. The longer your credit history, the better your score (as long as it’s positive!).
- Credit mix — This accounts for 10% of your score and is a lower impact, so you don’t have to worry about it as much. But it’s basically your mix of credit — ie. having credit cards, loans, and a mortgage is considered a decent mix.
- New credit — Another low-impact category, this shows if you’re at risk of having TOO much credit or too many accounts. But focus on opening accounts only when you need to, and try not to get too many loans or credit cards at once.
By focusing on these categories and improving them, over time you could reach an 800 credit score.
It can take upwards of three months to see your credit score change after paying off debt or paying down a significant amount. And, it’s also fairly common for your credit score to drop for the short term before raising again.
Just keep an eye on your account and don’t panic unless you see a discrepancy, like an account you didn’t open or fraudulent activity. Otherwise, your credit score will rise soon!
How fast can you get a 700 credit score?
How quickly can you get a 700 credit score?
Pretty fast, if you play your cards right!
Here are our favorite ways to boost your score fast:
1) Get A Secured Credit Card
One of the easiest ways to boost your score is to have revolving credit. But, you also don’t want to accidentally get into too much debt in the process that you can’t get out of.
So, instead of applying for cards that may or may not approve you, work with your local bank to get a secured credit card.
Here’s how it works — you’ll use your own money (usually $200-$2000, depending on how much you can realistically put up) to open the credit card. You can use it just like any other credit card, and it will show as such on your credit. As long as you keep it open, paid off, or less than 30% utilization, it will build your score month to month!
2) Keep Paying Your Bills On Time
As we’ve talked about before, your credit score is 1/3rd based on paying your bills on time. So avoid paying late or not paying at all. Overdue accounts or too many late payments will make your credit score drop.
Since the amount you owe counts for 30% of your score, you want to pay off debt and keep credit card usage as low as possible.
Of course, it’s best to not carry a balance on your credit cards at all, if you can help it. But I know that’s not always possible.
So, if you can’t completely pay off your cards, try to at least keep them at 30% utilization or lower. In other words, if you have a credit card with $10,000 on it, try not to have a balance over $3,000 at any time.
If you have student loans, a car loan, a mortgage, or a personal loan, try paying them off as fast as possible. The faster these debts are paid, the less you owe and the faster your score will boost.
Not everyone can pay off their student loans or mortgage right away, so focus on smaller debts and paying them off first.
4) Avoid Opening New Accounts Too Often
Every time you have a hard inquiry on your credit, your score drops. This is exactly why mortgage lenders recommend avoiding new debt when you’re applying to buy a home. Because if you apply for a credit card or loan within that same period, and your score drops, it could put your loan in jeopardy.
To avoid being seen as “risky” in the eyes of lenders, avoid any new accounts or new debt unless you have to get it.
Of course, we can’t always control when our car completely breaks down or we need to get a new line of credit because of hospital bills. But, by being smart about new accounts, you can avoid your credit taking. a hit too often. Experts recommend no more than five new accounts or inquiries per year.
How Good Is A 700 Credit Score?: You’re In Good Shape!
As you can see, having a 700 credit score is really good! While it may not be a perfect score, it’s just the right amount to help you get better interest rates, pay less over time, and even have a better chance of getting credit when you really need it.
So even if you want to raise your score even higher, a 700 isn’t anything to be ashamed about!
You were wondering how good is a 700 credit score? It’s decent! Could be better, but it will get you some benefits!
AUTHOR Kimberly Studdard
Kim Studdard is a project manager for online entrepreneurs and small businesses. When she isn't spending time with her daughter and husband, or reading her growing pile of horror books, you'll find her working on her HR degree and working towards FIRE.