Is a Credit Score of 700 Good or Bad?

FICO credit scores, the industry standard for assessing credit risk, range from 300 to 850 perfect, with 670 to 739 labeled “good”, 740-799 “very good, and 800 to 850” exceptional. A score of 700 places you right in the middle of the good range, but still slightly below the average credit score of 711. To be approved for new credit cards or loans, it's vital to have a good credit score. But what is a good credit score? Credit scores of around 700 are considered “good” by Fair Isaac Corporation, or FICO. You might think you can take a cruise if you have a score of 700, but you shouldn't be complacent with your finances.

A credit rating of 700 is a good credit score. The good credit range includes scores from 700 to 749, while an excellent credit score is 750 to 850, and people with such high scores are in a good position to qualify for the best possible mortgages, car loans, and credit cards, among other things. According to Experian, a credit rating of 700 falls under the “good score” category in the FICO and VantageScore credit rating models. So what does it mean to have a credit score of 700? It means that you are in a good position to qualify for new credit cards or loans.

It also means that you have access to some decent credit card options with solid perks such as travel and refunds. However, it's important to remember that there are still some factors that can damage your credit history and lower your score. If a creditor stops updating an old account that you don't use, it will disappear from your credit report and leave FICO and/or VantageScore with too little information to calculate a score. Your credit limit is a contributing factor to the utilization rate because it represents the amount of credit available.

Just remember that there's a big difference between knowing what your credit score is and actually understanding it. If you wait until the due date to pay, your credit report may show a high balance and utilization on your credit card until the next monthly update. The goal is to reduce the utilization rate or total credit card balances divided by the credit limit. No matter where you fall on the scale, always remember that there are a number of factors that can damage your credit history and help you improve your score.

Once you reach a score of 700 credits, you start unlocking some decent credit card options with solid perks, such as travel and refunds. The opposite can also be true, the brand could be verified as accurate and, in fact, end up lowering your credit rating even further. Scores can be calculated using different scoring models, such as those created by FICO and VantageScore. This means they may qualify for higher loan amounts, higher credit limits, lower down payments, and better bargaining power with loan and credit card terms.

Jeffery Sheinbein
Jeffery Sheinbein

Hipster-friendly food specialist. Certified pop culture geek. Certified music aficionado.