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.
Healthy credit is important since most mortgages have a minimum credit score requirement.
Consider:
- A conventional loan typically requires a credit score of at least 620.
- An FHA loan through Rocket MortgageⓇ requires a minimum credit score of 580.
- A personal loan from Rocket LoansSM requires a minimum credit score of 640.
A borrower with a 700 credit score will likely qualify for any financing option listed above.
Lower Interest Rates
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.
FAQs
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. In 2023, the average FICO® Score☉ in the U.S. reached 715.
What can a 700 credit score get you? ›
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.
Can you buy a house with a 700 credit score? ›
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.
Is a 700 credit score good to buy a car? ›
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.
How to get my credit score from 700 to 800? ›
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.
Is a 900 credit score possible? ›
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.
How long does it take to go from 700 to 750 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.
What credit score is needed for a 300k house? ›
Different lenders have different rules, but typically they require a 620 credit score for conventional loan approval. Individual lenders can impose higher minimums, and it's important to highlight this.
What does my credit score need to be to buy a 200k house? ›
Mortgage lenders typically want to see a score of 620 or better before approving a conventional mortgage.
Can I get a $50000 loan with a 700 credit score? ›
You will likely need a credit score of at least 580 for a $50,000 personal loan, along with enough income to afford the monthly payments. Other common loan requirements include being at least 18 years old, having a valid bank account, and being a U.S. citizen, permanent resident, or visa holder.
Getting a $10,000 loan with bad credit
Having bad credit does not automatically disqualify you from getting a $10,000 personal loan. However, borrowers with poor credit can often expect higher APRs. A cosigner with good credit or securing the loan with collateral can help you get approved with more favorable rates.
Is 700 a good credit score for a 21 year old? ›
So, given the fact that the average credit score for people in their 20s is 630 and a “good” credit score is typically around 700, it's safe to say a good credit score in your 20s is in the high 600s or low 700s.
What is the average person's credit score? ›
The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.
What is the average credit score by age? ›
Average FICO 8 score by age
| Age group | Average FICO 8 score |
|---|
| 18-29 | 680 |
| 30-39 | 692 |
| 40-49 | 706 |
| 50-59 | 724 |
1 more rowMar 7, 2024
Steps you can take to raise your credit score quickly include:
- Lower your credit utilization rate.
- Ask for late payment forgiveness.
- Dispute inaccurate information on your credit reports.
- Add utility and phone payments to your credit report.
- Check and understand your credit score.
- The bottom line about building credit fast.
According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.
What car loan can I get with a 700 credit score? ›
A credit score of 700 gets you an interest rate of 3% to 6% on car loans for new cars and about 5% to 9% for second-hand cars. Please note that these figures are just estimates, not interest rates. The actual interest rates may vary as they depend on multiple factors such as: Duration of the loan.
Is a 700 credit score good for a 20-year-old? ›
So, given the fact that the average credit score for people in their 20s is 630 and a “good” credit score is typically around 700, it's safe to say a good credit score in your 20s is in the high 600s or low 700s.
What can an 800 credit score get you? ›
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.
Is there a difference between 700 and 800 credit score? ›
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.
