Credit Score of 700: Is It Good or Bad?
Is a credit score of 700 good for getting a credit card with rewards or a loan? A credit score of 700 is undoubtedly solid, placing you in the “good” range. While there is room for improvement, it qualifies you for loans with competitive interest rates and opens the door to credit cards offering favorable terms.
Want to boost your credit score even further? Keep reading to explore key factors influencing your rating, top credit card options, and expert tips for choosing the right one.
First Things First: Definition of Credit Rating
A credit rating evaluates a borrower’s overall creditworthiness—essentially, how reliable you are at meeting specific debt obligations. This assessment is based on analyzing various risk factors. Think of it as your financial report card. In simple words, this is an indicator that demonstrates how desirable a borrower you are and how safe it is for the lender to extend credit to you.
How does it work? Credit bureaus gather data to create your report, which includes your payment history, credit utilization ratio, and information about open and closed loans. Based on all this data, a three-digit score is calculated, which lenders rely on to predict the likelihood that you’ll meet your credit obligations on time and in full. A higher score increases your chances of securing loans with favorable terms and lower interest rates.
So, when determining your rating, numerous factors are taken into account, and having a good score is crucial for obtaining loans and determining their conditions. Next, let’s examine what it takes to qualify for a rewards credit card or low-interest rate loan.
700 Score Peculiarities
To officially enter the “good” credit rating category, a credit score of 700 is the baseline. While it’s slightly below the average needed for the best offers, it still positions you for attractive credit terms.
In practice, borrowers with a score above 740 get the best interest rates and special terms on loans. However, if you are wondering, “Is 700 FICO score good?” then the answer is definitely yes. A credit score 700 moves you into the “good” credit range and still qualifies you for better deals on credit cards and any type of loan—a 700 credit score is good for favorable terms on car loans, home loans, credit cards, and personal loans.
If you are interested in “How much can I borrow with a 700 credit score?” then everything is not so simple because each case is individual. The lender makes a decision regarding the amount you can borrow, which will depend on a number of factors.
Thus, there are several factors that influence your score, and now we will look at some of the key ones:
- Payment History: Your track record of on-time payments carries the most weight. Even one late payment can hurt your score. The best solution is to consider setting up automatic payments for all your bills.
- Credit Utilization: The less your credit limit is used, the better it is for your rating. Aim to use no more than 30% of your available credit, and borrowers who have a credit utilization rate of less than 10% can qualify for the highest scores. If you increase your expenses using credit, then be prepared to see your score drop.
- Credit History Length: A longer credit history and older accounts enhance your score, as they signal reliability to lenders by minimizing their risks.
Keep in mind that your credit score is just one of many factors that lenders consider. Other aspects like your income, employment status, and more may also play a role in determination of your creditworthiness.
And if you’re wondering how to get a 700 credit score, here are some of our key recommendations that will get you closer to your desired score:
- Monitor Your Credit Utilization: Keep your credit use below 30%. Maintaining low credit utilization will help preserve and improve your score, and if possible, under 10%.
- Pay Bills on Time: Paying your credit bills consistently and on time are critical to building a strong payment history. Pay off your loan before it expires and in full to avoid interest and increase your rating.
- Reduce Debt: Pay down your loan balance upfront or make multiple payments throughout the billing cycle to lower your debt load and increase your score.
Top 5 Cards for a 700 Credit Score: Full Comparison
What are the best credit cards for a 700 credit score? Here’s our comparison of great options for your next credit experience:
Capital One SavorOne Cash Rewards Card
Annual fee: $0.
Rewards: 5% cashback on hotels and cars booked via Capital One Travel; 3% cashback on restaurants, entertainment, groceries, and more without limits; 1% cashback on other purchases.
Rating: 5/5.
Blue Cash Everyday® Card From American Express
Annual fee: $0.
Rewards: 3% cashback on online shopping, as well as on purchases in supermarkets and gas stations; 1% cashback on all other purchases.
Rating: 4.6/5.
Citi Custom Cash℠ Card
Annual fee: $0.
Rewards: 5% cashback on your chosen spending category; 1% cashback on all other purchases.
Rating: 4.4/5.
Wells Fargo Active Cash® Card
Annual fee: $0.
Rewards: Unlimited 2% cashback on all purchases.
Rating: 4.3/5.
Capital One Venture Rewards Card
Annual fee: $95.
Rewards: 5X miles on hotels and cars via Capital One Travel, 2X miles on all other purchases.
Rating: 4.1/5.
Choosing a Card for a 700 Credit Score: Tips & Tricks
When selecting a card for a 700 credit score, you need to take into account numerous factors, and the main thing you should pay attention to is your strategic long-term financial goals. When considering this or that option, think about how beneficial it will be for you in the future.
So, how do you find the best card? Here are our top recommendations that will help you use your card effectively while boosting your credit score:
- First and foremost, look for cost-effective terms and avoid high interest rates. An ideal option might include a card with an affordable annual interest rate (APR) or even an option with an introductory 0 APR offer.
- Rely on your spending habits to get the biggest benefits. Analyze your annual expenses, forecast your key spending categories—such as dining, travel, or groceries—and choose a card that offers higher reward rates in those areas.
- Take into account your largest purchases. Plan your credit card application to coincide with big-ticket purchases to take full advantage of rewards and introductory offers.
Final Thoughts
Lenders rely heavily on your credit score to determine whether to approve you for a loan and under what terms. The principle is simple: the higher your score, the higher your chances of getting a loan with low interest and favorable conditions.
Is 700 a good credit score? Absolutely! But it’s just the beginning. You can always aim to have an even higher score, and the main rule you should follow is to maintain strong financial habits. The variety of credit cards available for a 700 credit score depends on how close you are to the next tier. Follow these recommendations, enhance your credit rating, and unlock new financial opportunities.
