Is 700 a Good Credit Score

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Is 700 a good credit score? Seven hundred is more than adequate for a credit approval in most cases, however a better credit score will open the door to better interest rates and more attractive credit terms.

Is 700 a Good Credit Score or Not

A credit score of 700 is usually considered to fall within the range of good credit although some lenders lump applicants with scores of 700 into the same range of people with excellent credit. Whether the score is considered good or excellent depends a lot upon the standards of the lender. While some lenders are quite pleased to receive an application from a potential borrower with a score of 700, other lenders pause when receiving this score on an application because they prefer to deal with applicants who have scores of 760 or better.

Is 700 a good credit score? It is considered to be a good credit score in most cases, but some lenders and other organizations do not consider it as an excellent score. In other words, the application for credit will probably be approved, however a person with a credit score of 700 may not receive the same attractive interest rate as a person with a credit score of 800.

Improve Upon 700

Some financial experts state that 700 is a completely adequate credit score and therefore there is not any compelling reason to aggressively pursue a higher credit score. On the other hand, other financial experts urge consumers to improve upon their credit scores until reaching the upper echelons of credit ratings in order to be eligible for the best interest rates and the best loan terms.

Whether you actually want to pursue a higher credit score or not depends on your needs. For example, if you know that you will apply for a mortgage loan within the next few years you may indeed want to work at building up a higher credit score so you can have the best buying power possible when applying for a mortgage loan. If you already own your home and have no interest in making any major purchases on credit within the next few years, then there may be no reason to try to raise your already-adequate credit score.

How to Raise Your Score

There are some things you can do if you do want to raise your credit score beyond 700. It's a little more difficult to raise your credit score from this level than it would be to raise it from a rock-bottom score. Chances are you already maintain your credit wisely and rarely miss a payment, so simply staying on top of your payments may not raise your score quickly enough for your needs.

Try these tactics to raise your credit score beyond 700:

  • Pay your balances down, but don't pay them off completely. You need to maintain your active accounts. In most cases, the more available credit you have, the higher your credit score will climb.
  • Don't close any accounts. Not only do you lose the available credit, but you also lose the longevity of the account on your credit report.
  • Look at the types of credit accounts you have. Some accounts are better than others when it comes to your credit score. For example, a mortgage loan rates higher than a credit card account with regards to your score.
  • Don't apply for new accounts. Unless you actually need the accounts, don't inundate your credit report with a huge number of inquiries. A lot of inquiries on your credit report can drag your score down.
  • Of course, stay on top of your payments. When you are aggressively trying to raise your credit score you should be extra careful to make your payments on time, every time. Missing even one payment can be a huge setback when trying to increase your credit score.

You can find out how to obtain your current credit score standing by visiting the FICO website.

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