700 Credit Score: What It Means

If you have a 700 credit score, this is considered to be a good credit score. If you’re applying for credit with a score of 700, lenders may offer you a range of products, but you might not get the best deals or lowest interest rates.

In this article, we’ll discuss what it means to have a 700 credit score, and how this score can impact your ability to be approved for things like credit cards, loans, and mortgages.

Is a 700 credit score good?

Yes, a credit score of 700 falls within the "Good" range (670-739) on the FICO® credit scoring model. It is slightly below the average FICO score in the U.S. (717 as of 2024), and 21% of U.S. consumers have a credit score in the Good range.^{[1] [2]}

FICO credit score ranges are as follows:

• 300–579: Poor
• 580–669: Fair
• 670–739: Good
• 740–799: Very Good
• 800–850: Exceptional

What can I get with a 700 credit score?

Because a 700 credit score falls into the Good credit score range, you should typically qualify for a wide range of financial products including mortgages, loans, and credit cards.

Working towards a credit score of 700 or above could help your finances in the following ways:

• More attractive loan terms - The higher your credit score, the less risky you appear to lenders, and this could qualify you for higher loan limits and lower interest rates.
• Lower insurance premiums - Car and home insurance providers in many states will use a credit-based insurance score to help decide how much you should pay for insurance. Your premiums won’t solely be based on this, but it can have an impact.
• Better position for renting - If you’re applying to rent an apartment, the landlord will often check your credit history to understand how likely you’ll be to make your rent payments on time. Having a credit score of 700 or more could give you an advantage compared to those with lower scores.
• More credit card options - Credit cards with the best terms and rewards are typically reserved for people with good or excellent credit. Having a 700 score or higher could improve your chances of being approved and getting a card with more attractive rates and perks.
  ^[3]

Let’s take a look at how a 700 credit score could impact your chances of approval for different financial products.

Is 700 a good credit score to buy a house?

If you have a 700 credit score, you’ll have a good chance of being accepted for most types of home loans. The minimum credit score needed to buy a house varies depending on the type of loan you’re applying for, but a 700 score is above the requirement for most mortgage loan types.

For a conventional mortgage loan, lenders typically require a credit score of at least 620, although this can be as high as 660 for some. Conventional loans are the most commonly used mortgage loans in the U.S.; they have to adhere to standards set by Fannie Mae and Freddie Mac (government-sponsored entities), but they are not insured by a government agency.

Jumbo loans fall under the category of conventional loans, but they are typically for properties that are too expensive to meet the requirements of a conforming loan. Lenders usually require a credit score of at least 700 for a jumbo loan.^[4]

For those with lower credit scores, other options such as FHA, VA, and USDA loans are available; these loans are offered by government agencies and have certain requirements that borrowers have to meet.

Your credit score can impact your ability to be approved for different types of mortgage loans, and it can also affect the interest rate you pay on your mortgage. Generally, the higher your credit score, the better your chances of securing a lower interest rate. Other factors that mortgage lenders can consider include your credit history, debt-to-income ratio, work history and income, your down payment, and any other assets you have.^[4]

Credit cards with a 700 credit score

When you apply for a credit card, the issuer will check your credit score to determine your creditworthiness. This helps them decide what type of card you qualify for, and how much interest you’ll pay.

If you’re looking for a credit card as someone with a 700 credit score, you’ll probably find a good choice of cards and you may qualify for certain cards with benefits like travel rewards, cashback, and 0% APR offers.

However, as a score of 700 is slightly below the average in the U.S., you might find it difficult to be approved for credit cards with more significant benefits like airline companion tickets or airport lounge access. Some credit card companies might reserve these additional perks for those with credit scores in the Very Good (740-799) or Exceptional (800-850) FICO Score ranges.^[5]

Auto loans and a 700 credit score

When you apply for auto financing, the lender will check your credit score to understand whether or not they should approve the loan, and what interest rate you should pay. Your debt-to-income is another critical factor that will help determine whether you are approved along with factors such as the vehicle you are buying, the loan amount, your down payment, and the repayment term.

In the example below, credit score ranges for car loans are categorized using a different scoring model. The data from Experian uses VantageScore® 4.0, which ranges from deep subprime (300-500) to super prime (781 or above). VantageScore® uses a different scoring model from FICO®. If you have a 700 credit score using the VantageScore® 4.0 scoring model, you would fall into the prime range (661-780) for auto loans.

According to Experian data as of Q3 of 2024, a 700 credit score can get you an average APR (Annual Percentage Rate) of 6.7% for a new car, or 9.63% for a used car. At the other end of the scale, someone with a deep subprime credit score would be looking at an average APR of 15.43% for a new car, or 21.55% for a used car.^[6]

Experian data as of Q3 2024 using VantageScore® 4.0

Source ^[6]

Building credit with a 700 credit score

While a 700 credit score is considered good, there is still room for improvement if you want to better your chances of being approved for lower interest rates or credit cards with attractive perks.

Your FICO credit score is based on many different pieces of information in your credit report, and these five categories hold different weights when it comes to calculating your score:

• Payment history (35%)
• Amounts owed (30%)
• Length of credit history (15%)
• Credit mix (10%)
• New credit (10%)
  ^[7]

With those factors in mind, there are some things you can do to lift your 700 credit score from Good to Very Good or even Exceptional:

• Ensure you keep making payments on time - As your payment history accounts for 35% of your credit score, making sure you pay on time each month is crucial to maintaining and lifting your credit score. Even one missed payment can have a negative impact on your score.
• Keep your credit utilization ratio as low as you can - This is a measure of the amount of available credit you’re using, expressed as a percentage. You can keep your credit utilization ratio low by paying your bill in full each month, keeping a low balance, and increasing your available credit when necessary.
• Expand your credit mix - Credit mix refers to the different types of credit and loans you have open at any one time. Having a diverse mix of different credit types by naturally borrowing money for different reasons can contribute to turning your score from Good to Excellent over time. But it’s not a good idea to take out loans and new credit just to build your score.
• Increase your length of credit history - This one requires some patience, but the longer you have a positive credit history, the more it can help you build your score over time. Getting an Excellent credit score can take years, and consistently maintaining positive credit habits over time can help you lift your score gradually.^[3]

How much can I borrow with a 700 credit score?

The amount you can borrow depends on a wide range of factors, not just your credit score. These can include the loan type you’re applying for, the terms the lender sets out for the loan, your debt-to-income ratio, and more. However, having a Good credit score or better can improve your chances of being accepted for higher-value loans and better loan terms, like lower interest rates. ^[3]

Sources

1. FICO, “Average U.S. FICO Score Stays at 717” https://www.fico.com/blogs/average-u-s-ficor-score-stays-717-even-consumers-are-faced-economic-uncertainty
2. Experian, “700 Credit Score: Is It Good or Bad?” https://www.experian.com/blogs/ask-experian/credit-education/score-basics/700-credit-score/
3. Experian, “How Do I Get My Credit Score Above 700?” https://www.experian.com/blogs/ask-experian/how-do-i-get-my-credit-score-above-700/
4. Experian, “What Credit Score Do I Need to Buy a House?” https://www.experian.com/blogs/ask-experian/what-credit-score-do-i-need-to-buy-a-house/
5. American Express, “Is 700 a Good Credit Score?” https://www.americanexpress.com/en-us/credit-cards/credit-intel/700-credit-score/
6. Experian, “Average Car Loan Interest Rates by Credit Score” https://www.experian.com/blogs/ask-experian/average-car-loan-interest-rates-by-credit-score/
7. MyFICO, “How Are FICO Scores Calculated?” https://www.myfico.com/credit-education/whats-in-your-credit-score

About the author

Becca has over 10 years of experience as a content writer, working across various industries including finance, digital marketing, education, travel, and technology. Her work has been featured in publications including Forbes, Business Insider, AOL, Yahoo, GOBankingRates, and more.

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