Before going into all the aspects of 700 credit score, it may be prudent to know exactly what a credit score stands for. The fact is that, the credit score has got something to do with your credit worthiness, which in other words means how much reliable will you be in repaying a loan that is granted in your favor. In the United States, credit score is a number that ranges from 300 to 850. If you are closer to 850, then your score is good, and if you are closer to 300 then your score is poor. A 700 credit score would thus be a good credit score. Lenders are eager to issue the money to people who have a good credit score. The credit score is also sometimes referred to as the FICO score.
Getting back to title of the topic, you can easily observe that even though 700 credit score may be considered as one which is on the higher side, and yet, it is more than 100 points lower than the maximum limit that is 850. But you should know that, very rarely will you meet or know of somebody who even has a score above 800. And so, if you have managed to achieve a 700 credit score, you can be extremely proud of your credit worthiness.
700 Credit Score – Is It Good Enough?
Incidentally, even a few years ago, a 700 credit score would have been considered adequate to get you approved for any type of credit card. But the ‘Great Recession’ has changed the picture alarmingly. The lending agencies have learnt a big lesson now, and they have become much more stringent in granting credit. As a result, they are always demanding better score these days. However having said this, you can even today be perfectly satisfied with a score that is about 700.
You should know that the average score in the US at this time is around 670 to 680. And so with a 700 score, it can be said that your record is better than most others in the country. The lending agencies would thus be eager to give you the money you need. Your credit card applications would also be approved without any problems. The reasons are quite simple. The financial institutions and lenders will consider you as a lower risk customer. The lenders will not only hasten to extend the credit in favor of you, but will also offer you interest rates that are competitive and many financial options as well.
Also, when the 700+ credit score puts you among the better applicants and this makes you a natural contender for many purchasing and financing options that are usually held in reserve for the qualified buyers. Imagine the facilities you will be entitled to when you are bracketed with these august groups who are usually associated with the perfect combination of debt repayment record and credit score. Great, isn’t it?
That’s precisely why a 700 credit score is such a fantastic thing to have. You should certainly aspire to get a 700 credit score, and if you already have it, then you can be proud of your achievements.