A credit score of 700 is considered "good" by FICO, and although it's not in "very good" or "exceptional" territory, it should qualify you for the best terms on most loans. Here's how you can use your credit score to get lower interest rates and maximize the benefits of good credit. Show What a FICO score of 700 can get youEven though a 700 credit score seems pretty high based on the official FICO score range of 300 to 850, it is exactly average, according to FICO data from April 2017. To put it in perspective, roughly 43% of credit scores across the United States are lower than 700. Of course, the average fluctuates. In 2009, for example, the average credit score was lower due to the financial crisis. Regardless, having a score of 700 or higher should set you up for some of the best interest rates and terms available on credit cards, car loans, and mortgages.
Image source: Getty Images. Planning to buy a home?If you're looking to purchase a home, it's wise to work on maximizing your credit score before you apply for a mortgage. Here are some things to do:
Refinance old debtsIf your credit score hits 700 on the way up, you may have ample opportunity to cash in by refinancing your existing debts at a lower rate. Student loans, car loans, and mortgages can all be refinanced at a lower rate if you have a recently improved credit score. The table below shows the rates Capital One offers on car loan refinances, just to give an example.
Source: Capital One via loan aggregator. As you can see, getting to a credit score of 700 or higher can save you a lot of money on your auto loan. Similar savings are available for people who refinance student loans and mortgage loans after increasing their credit scores. If you start shopping around to refinance a loan, it's important to follow some basic rules to avoid a negative impact to your credit score. For the purposes of calculating your credit score, all credit inquiries within a 45-day period are combined into one. Because your credit score would otherwise take a small hit with every inquiry, it's smart to get all your refinance quotes within a 45-day time frame. Cash in with a credit cardIf you don't plan to get a mortgage or refinance any existing debt, at least consider getting a rewards credit card. Thanks to robust competition for credit card customers, banks are offering friendly terms to borrowers who have credit scores over 700. Some particularly good offers can be found in cash-back rewards cards and travel credit cards.
Of course, the financial benefits of top-tier credit cards only make sense for people who won't carry a balance and thus avoid paying interest on their cards. It goes without saying that even the best rewards programs can be more than offset by interest, which can add 18% or more of your balances each year. For this reason, credit cards are best used as a substitute for debit cards, used only to purchase what you can afford to pay for with cash. Jordan Wathen has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. How many people have over 700 credit?What Percentage of the Population Has a Credit Score Over 700? The same data referenced above also reveals the percentage of the population with a score of over 700. According to FICO.com, approximately 59.2 percent of the U.S. population has a credit score range between 700 to 850.
How big of a loan can you take out with a 700 credit score?You can borrow $50,000 - $100,000+ with a 700 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
Is 700 a Okay credit score?Your score falls within the range of scores, from 670 to 739, which are considered Good. The average U.S. FICO® Score, 714, falls within the Good range.
What kind of home can you get with 700 credit?With a 700 score, you're likely to qualify for a conventional loan with cheaper mortgage insurance and an even smaller down payment. There are just a couple exceptions to that rule: If you have higher debt, an FHA loan might be better. FHA can be more forgiving of a high debt-to-income ratio.
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