A 700 credit score is considered good and can often earn competitive borrowing terms. It might not fall into the “excellent” category — according to the credit bureau Experian, the average FICO score in 2019 was 703 — but it’s generally seen as good.
A 700+ credit score is a positive signal to lenders about your borrowing habits. However, when it comes to what’s considered a good credit score, different types of loans can have different standards. With that in mind, let’s dig into the details with a look at these topics:
- What credit can you qualify for with a 700 credit score?
- 8 ways to help boost a 700 credit score
- FAQ: 700 credit score
To start, here’s a rundown of various types of credit, along with Experian’s view on whether the typical borrower with a 700 score might qualify.
|700 credit score|
|Credit type||Could you qualify?|
|Private student loan||Yes|
|Federal student loan||Yes; most federal student loans don’t require a credit check. Direct PLUS loans require a credit check; there may be more requirements for those with subprime credit.|
|Balance transfer credit card||Yes|
|Rewards credit card||Yes|
|Home equity loan||Yes|
How a 700 credit score can help
Having a good credit score not only gives you access to more borrowing options, but it can result in money saved with a lower interest rate.
For example, let’s say a student with a 700 credit score is approved for a $40,000 10-year private student loan at a 6.0% fixed interest rate. The student would pay $13,290 in total interest at the end of the repayment term.
A student with a low credit score will be offered a higher interest rate because of their high-risk credit profile. A student with a 600 score, for example, might receive a fixed interest rate of 7.25% for the same amount and term. In this case, the borrower would pay $16,353 on interest alone — that’s a difference of $3,063.
- Keep tabs on your credit score: Check-in on your credit score to find where your score stands and determine what level you want to work toward. Regularly revisiting your credit score can also help you stay on top of anomalies that might be dragging your score down, like an unauthorized new account.
- Know about rate-shopping windows: When applying for credit, every hard pull on your credit report can lower your score so it’s best to compare interest rate offers within a short amount of time. FICO gives you a 30-day window to shop around for competitive rates and terms, and if a new account is opened within that window, it only counts one hard inquiry against your credit score.
- Make payments on time: One of the most impactful ways to improve your credit score is by making on-time payments. Payment history makes up 35% of your FICO score and a good track record of timely payments shows you can be trusted to repay your debt. Set up auto-pay on your accounts or add a calendar reminder to your mobile device to alert you when your payments are due.
- Watch your credit utilization ratio: Your credit utilization ratio is the amount of credit you’ve used compared to the amount of credit you have available. This ratio directly impacts 30% of your credit score so keeping your credit utilization to below 30% is recommended. A high credit utilization ratio may signal to creditors that your debt is close to exceeding your ability to repay it.
- Ask for credit limit increases: Another way to keep credit utilization balanced is to request credit limit increases on revolving lines of credit. Keeping your debt as-is and increasing your available credit can help lower your utilization ratio.
- Keep old accounts open: 15% of your FICO credit score is based on the length of your credit history. Keeping your most established accounts open, like a credit card, can help this part of your credit score.
- Look out for credit report errors: Your credit report holds the comprehensive information that’s used to calculate your credit score. If there’s an error in your credit report, your score may be adversely affected. You can request your credit reports from each credit bureau every 12 months for free at annualcreditreport.com.
Is 700 a good credit score?
Yes, a 700 credit score is generally considered a good score by many lenders.
What are the FICO Score ranges?
FICO scores are broken up into five ratings and score ranges.
What is considered an excellent credit score?
According to FICO, an excellent credit score is 800 or higher.
What is an ideal credit score?
If you’re wondering, what is an ideal credit score, higher is better. However, it can take time to build credit and earn a higher score. If you have a credit score under 700, other factors like a high income and low debt-to-income ratio may work in your favor.
What are the factors that affect your FICO Score?
There are five elements that make up your FICO score. These factors include:
- Payment history (35%)
- Amounts owed (30%)
- Length of credit history (15%)
- New credit (10%)
- Credit mix (10%)
Can I buy a house with a 700 credit score?
Generally, yes, you can buy a house with a 700 credit score. According to Experian, conventional loans require a score of at least 620 while FHA loans may be available to qualified borrowers with a score as low as 500 with a 10% down payment. Jumbo mortgage loans may require at least a 700 credit score.
What happens to your credit score after bankruptcy?
A bankruptcy stays on your credit report for seven to 10 years, depending on the type of bankruptcy filed. During this time, your credit score is adversely affected by bankruptcy and it might be difficult to secure new lines of credit. If you are approved for a loan or credit line, expect to pay higher interest rates.
Kali Hawlk contributed to this report.
Interested in refinancing student loans?Here are the top 6 lenders of 2020!
|Lender||Variable APR||Eligible Degrees|
|1.89% – 6.66%1||Undergrad & Graduate|
|1.89% – 5.90%2||Undergrad & Graduate|
|2.25% – 6.09%3||Undergrad & Graduate|
|1.99% – 5.64%4||Undergrad & Graduate|
|1.98% – 8.55%5||Undergrad & Graduate|
|2.39% – 6.01%||Undergrad |
|Check out the testimonials and our in-depth reviews! |
1 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount.
The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.
To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of October 1, 2020.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.
Interest Rate: A simple annual rate that is applied to an unpaid balance.
Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of September 9, 2020. Information and rates are subject to change without notice.
3 Important Disclosures for SoFi.
4 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 2.98% APR (with Auto Pay) to 5.79% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 5.64% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of July 31, 2020, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 7/31/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.
© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
5 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of 5 years and is reserved for applicants with FICO scores of at least 810.
As of 10/15/2020 student loan refinancing rates range from 1.98% APR to 8.55% Variable APR with AutoPay and 2.99% APR to 8.77% Fixed APR with AutoPay.