Credit Score 700: What You Need to Know

Irina Tsymbaliuk
Credit Score 700

You may wonder, “Is a credit score of 700 good for loan approval?” Sure, when applying for a loan, a strong credit score is crucial. A score of 700 can help you secure favorable terms, such as lower interest rates. However, enhancing your score beyond this number can lead to even better conditions.

So, what are the benefits of a 700 credit score? How do you achieve this rating and make it even higher? What cards are there for this score, and how do you choose the best one? Read on to discover practical strategies to boost your financial health and improve your loan eligibility.

First Things First: Definition of Credit Rating

Definition of Credit Rating

A credit rating evaluates a borrower’s overall creditworthiness or their reliability in meeting specific debt obligations. This assessment is based on analyzing various risk factors. In simple words, this is an indicator that demonstrates how desirable a borrower you are and how safe it is for the lender to provide you with credit.

How does it work? Credit agencies collect information 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, and lenders use this score to predict the likelihood of your meeting or not meeting your credit obligations on time and in full. A higher score increases your chances of securing a loan with favorable terms and lower interest rates.

So, when determining your rating, a large number of factors are taken into account, and having a good score is crucial for approving all types of credits and determining their conditions. Next, we’ll talk about what score you should have to qualify for a rewards credit card or low-interest rate loan.

700 Score Peculiarities

700 Score Peculiarities

To officially qualify as a borrower with a good rating, you must achieve a credit score of 700—even if it is slightly below average, this mark is the starting point for you to receive favorable credit terms.

In practice, a score above 740 qualifies you for the best interest rates and special terms on loans. However, if you are wondering, “Is a 700 credit 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 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 how much you can borrow based on a number of factors.

So, there are a huge number of different factors that affect your score, and now we will look at some of the main ones:

  • Payment history. Your payment history is key, and even one late payment can hurt your rating. The best solution is to set up automatic payments for all your bills, which will help you avoid late payments.
  • Use of credit. The less your credit limit is used, the better it is for your rating. It is recommended to use no more than 30% of the limit, 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.
  • Length of credit history. A longer credit history and older accounts enhance your rating, as they demonstrate reliability to lenders by minimizing their risks.

Also, keep in mind that your score is only one of many factors that lenders consider, and your income, employment status, and more may also affect the 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. Try not to use your credit by more than 30%. Maintaining low credit utilization will help preserve and improve your score.
  • Pay bills on time. Paying your credit bills on time helps establish a strong payment history. Pay off your loan before it expires and in full to avoid interest and increase your rating.
  • Reduce debt. Pay your loan balance upfront or make multiple payments throughout your payment cycle to reduce your debt and increase your score.

Top 5 Cards for a 700 Credit Score: Full Comparison

Top 5 Cards for a 700 Credit Score

What are the best credit cards for a 700 credit score? Here’s our selection of great options for your next credit experience.

Capital One SavorOne Cash Rewards Card

Annual fee: $0.

Rewards: 8% cashback on Capital One Entertainment purchases; 5% cashback on hotels and cars booked through Capital One Travel; 3% cashback on restaurants, entertainment, groceries, and more without limits; 1% cashback on other purchases.

Bankrate review score: 5/5.

Capital One Venture Rewards Card

Annual fee: $95.

Rewards: Travel rewards include 5X miles on hotels and cars booked using Capital One Travel and 2X miles on all other purchases.

Bankrate review score: 4.9/5.

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.

Bankrate review score: 4.6/5.

Citi Custom Cash Card

Annual fee: $0.

Rewards: 5% cashback on your chosen spending category; 1% cashback on all other purchases.

Bankrate review score: 4.4/5.

Wells Fargo Active Cash Card

Annual fee: $0.

Rewards: 2% reward on purchases without limits.

Bankrate review score: 4.3/5.

Choosing a Card for a 700 Credit Score: Tips & Tricks

Choosing a Card for a 700 Credit Score

When choosing a card for a 700 credit score, you need to take into account a large number of 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 recommendations that will allow you to use your card effectively and help increase your rating.

  1. First and foremost, look for cost-effective terms and avoid high interest rates. This could be a card with an affordable annual interest rate or even an option with an introductory annual interest rate of 0%;
  2. Rely on your spending habits to get the biggest benefits. Analyze your annual expenses, forecast your key spending categories, and match them with increased reward rates for these categories;
  3. Take into account your largest purchases. Plan your credit card application to coincide with big-ticket purchases.

Final Thoughts

The lender relies on your credit score to decide whether to approve you for a loan and under what terms. The principle of direct proportionality works here: the higher your score, the higher your chances of getting a loan with low interest and good terms.

Is 700 a good credit score? Definitely, yes, but this is far from the limit. You can always strive to have an even higher score, and the main rule you should follow is to have good financial habits. The number of cards available to you for a 700 credit score depends on how high your score is. Follow our recommendations, improve your rating, and open up new opportunities.