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.
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.
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 2022, the average FICO® Score☉ in the U.S. reached 714.
In other words, a 700 credit score will still qualify you for better deals on credit cards, personal loans, mortgages and other types of credit, but it won't give you access to the same types of terms someone with very good credit, or a credit score above 740, would have.
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.
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.
Making on-time payments to creditors, keeping your credit utilization low, having a long credit history, maintaining a good mix of credit types, and occasionally applying for new credit lines are the factors that can get you into the 800 credit score club.
As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.
If your score is between 650 and 700, you have a consistent payment history and low credit utilisation, it may take only a few months to reach a score of 750.
Federal Housing Administration (FHA) loans need at least a 580 FICO Score with at least a 3.5% down payment (which amounts to $10,500 on a $300,000 home). Conventional loans require a minimum FICO® Score of 620 along with a 3% down payment (which amounts to $9,000 on a $300,000 home).
These factors may include your income, employment history, debt-to-income ratio, and credit history. It's important to have a strong overall financial profile in addition to a good credit score in order to increase your chances of approval. You should have received rejection letters or notices for every non-approval.
Having a 700 credit score puts you in the “prime” category for borrowing. According to Experian, the average rates for this category are 6.44% for new-car loans and 9.06% for used-car loans.
A perfect credit score of 850 is hard to get, but an excellent credit score is more achievable. If you want to get the best credit cards, mortgages and competitive loan rates — which can save you money over time — excellent credit can help you qualify. “Excellent” is the highest tier of credit scores you can have.
Consider yourself in “good” shape if your credit score is above the average for people in your age group. Given that the average credit score for people aged 18 to 25 is 679, a score between 679 and 687 (the average for people aged 26 to 41) could be considered “good”.
Your credit score does not determine the amount of a loan that you can get. It has to do with the interest rate that you'll have to pay a higher, your credit score the lower the interest rate should be. Your credit score is only one factor and 700 isn't really high.
The highest personal loan amount you can usually find is $100,000. While you may qualify for a $100,000 personal loan with a 700 credit score, it's not guaranteed. If you have a lot of debt or an unfavorable debt-to-income ratio, some lenders may limit how much they are willing to loan.
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.
Introduction: My name is Terrell Hackett, I am a gleaming, brainy, courageous, helpful, healthy, cooperative, graceful person who loves writing and wants to share my knowledge and understanding with you.
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