is 700 a good credit score?
Posted on October 10, 2008
Is 700 a good credit score? It is not an easy question to answer. Why? Each lender looks at the score as one of determining factors when deciding to give you a loan. Furthermore, the lenders can have their own standards by which they determine the interest rate they give you. This means that above 730 the lender will give a lower interest and below you will have to pay more interest.
Why is 700 a good credit score?
If you start just by looking at the credit score scale, you will see a 700 is near the top and the higher is always better. Another reason why 700 is a good credit score because you will have a higher credit score compare to 50% of the population. This really means that you are in the top 50% of all American consumers. The average credit score reported by Experian is 692. When you apply for a loan 700 is a good credit score because you will get a lower interest rate than 50% of the population.
The second reason why 700 is a good credit score is the cut off point used by many lenders. The cut for many lenders is the 620 mark. What this really means you will not be accepted for a loan if below this point. If you have a 700 credit score you will more than likely be accepted for a loan.
A third reason making 700 a good credit score is the default rate. The default rate is relativity low for lenders when a person has a 700 credit score. This is a very attractive fact if you are a lender. With things like foreclosure running wild in the country as of late, anything that points to less of a default risk is going to be weighed heavily when making lender decisions.
Why are you asking if 700 is a good credit score?
If you are asking is 700 a good credit score you more than likely don’t know your score. You might not understand how this can really impact your life. This is often a question that is asked when a large loan is needed not just a credit card. If so you need to know you score and you can find it several different places:
These are just two but you should be able to get the credit score from all three bureaus through these resources
Do you just strive to have a good credit score?
Is 700 a good credit score? Do you just want to be good? If you can achieve an excellent credit score the benefits from before only get better. Things like lower interest rates, lower monthly payment, and saving money are the main benefits. So again the higher the better is always true.
Is 700 a good credit score on what scale?
There are several different ways to score credit and some have different credit score ranges. The discussion above covers if the lender is using your FICO score or the credit bureaus scoring. There is also a scoring process called Vantage score. This is a different credit score scale. This scale goes from 500 to 900 and 700 would be considered a c grade. A “C” is not usually associated with being good. You need to always ask the lender the score they use. But if you have a 700 using a FICO score, you should fair pretty well in this scoring model.
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i am looking at is 700 a good score because my score is 705 which is not bad for a guy who filed for bankruptcy 7 years ago. it took hard financial work all on my own with no fancy for hire help but i did it.