700 Credit Score: Is It Good or Bad? How to Build Higher - NerdWallet (2024)

How does your score compare with others?

Strategies to build your 700 credit score

You likely already practice good credit habits to earn your 700 score, but there are ways to take it higher.

An excellent score (720 and above) can get you the best rates. The good news is that it doesn’t take much to improve your credit when you're already in the good range.

Payment history

A single late payment can be devastating to your score. Consider setting up autopay on your credit cards and other bills to avoid the risk of a late payment.

Credit utilization

Credit utilization refers to how much of your credit limits you have in use.

Aim to use 30% or less of any card's credit limit, and lower is better. Utilization below 10% is a hallmark of consumers with the highest scores, according to VantageScore, the main competitor to FICO.

You could ask your credit card issuer for a higher limit or consider opening a new credit card. In either case, don't increase your spending or you'll lose the benefit of a higher overall limit bringing down your utilization.

Length of credit history

The longer you've been using credit — and the longer your average age of accounts — the better it tends to be for your score. Remember, credit scores are meant to estimate your risk as a customer, and a longer history gives more data to estimate with.

Avoid closing credit cards unless there's a pressing reason, like a high annual fee. You can also look into doing a product switch to a more suitable card from the same issuer.

Credit applications

Each time you apply for credit, there's likely to be a hard inquiry on your credit. Each of those can take a few points off your score temporarily, so space out applications by about six months.

Credit mix

Having a mix of installment loans, with fixed payments for a set time, and revolving credit like credit cards is better for your score.

What a 700 credit score can get you

Your credit score is used by lenders to see if you qualify for financial products and to set the interest rate you'll pay.

With a 700 credit score, you've crossed over into the "good" credit range, where you can get cheaper rates on financial products like loans and credit cards.

Car loans

According to a report released by credit bureau Experian, nearly 69% of cars financed in the fourth quarter of 2023 were for borrowers with scores of 661 or higher. The average interest rate on a new car was 7.01% and the average rate for a used car was 9.73% for buyers in the 661-780 range.

Home loans

A 700 credit score is also good enough to buy a house. You can even find lenders that will consider you for higher-value homes requiring “jumbo” mortgages. Your credit score is one of many factors that determine mortgage interest rates. Getting a good rate can save you many thousands of dollars over the life of your loan.

Credit cards

As you research the best credit card for your needs, pay attention to the score required. Since each application can temporarily nip a few points off your score, you want to make sure you're likely to be approved. But you should find plenty of choices of credit cards for a 700 score.

Personal loans

As with other loans, a better credit score will help you get a better interest rate. Check out the minimum credit score for any personal loan you're considering.

What happens to a 700 score with a late payment?

It's important to note that paying a day or two late — past the due date — is not a disaster. It may cost you a late fee, or your credit card issuer could raise your interest rate.

However, letting a bill go 30 days past due or more can send your score plummeting: A single missed payment can take 100 points off a credit score, especially a good one.

The exact score loss you might suffer depends on many factors in your credit profile — but it's likely to hurt, so pay attention to this crucial scoring factor.