Is 700 a Good Credit Score?
5 Min Read | Last updated: October 14, 2024
A low 700s credit score is the U.S. average and is considered good by most lenders’ standards. A high 700s score indicates dependability and can lead to better loan terms.
At-A-Glance
- Lenders view credit scores as quantifiable indicators of creditworthiness.
- By FICO standards, credit scores in the 700s can range from “good” to “very good.”
- Having a credit score in this range can help you get approved for various types of credit.
You checked your credit score and noticed it’s somewhere in the 700s. That’s officially a “good” or “very good” thing, according to FICO standards.1 But what exactly do those indicators mean in the context of credit?
This article explains what it means to have a credit score in the 700s and what types of credit and credit terms this range can afford you.
Is a 700 Credit Score Good?
FICO, the most widely used credit scoring model, categorizes scores into the following ranges:1
- 300–579: Poor.
- 580–669: Fair.
- 670–739: Good.
- 740–799: Very Good.
- 800–850: Exceptional.
So, a credit score in the low 700s is labeled as “good” and a score in the mid-to-high 700s is “very good.”
In Q3 of 2022, the average FICO score hit 714 and has been steadily rising, with the average FICO score hitting 715 in 2023, according to Experian.2 This means that if your credit score falls in the low 700s range, it’s somewhere around the U.S. average. About 40% of the population has a credit score below 700.3
Take note that VantageScore uses different credit score ranges:1
- 300–499: Very Poor.
- 500–600: Poor.
- 601–660: Fair.
- 661–780: Good.
- 781–850: Excellent.
What You Can Get with a 700 Credit Score
By checking your credit score, lenders – such as credit card issuers, landlords, banks, and other relevant financial institutions – can determine whether you qualify for new credit and what interest rate you’ll pay. Compared to fair or poor credit scores, which may make it challenging to obtain certain types of financing, a credit score in the 700 range can open up new lending opportunities with more affordable rates and favorable loan terms.4
Here’s what you can expect to get with a 700-plus credit score:
- Mortgages: The generally accepted baseline credit score to get a conventional mortgage is 620, so any score over 700 will likely boost your chances of approval – as long as other financial factors, like debt-to-income ratio and income statements, meet lenders’ requirements.5 In Q4 of 2021, 67% of mortgages were originated to borrowers with credit scores over 760.7
- Car loans: A 700 credit score (or higher) will likely help you get approved for either new or used car financing – again, as long as other financial factors meet lender requirements. In the fourth quarter of 2021, consumers who financed vehicles, new or used, with a credit score of 700 or higher were in the 50th percentile.7
- Credit cards: Someone with a good credit score may qualify for a credit card with desirable perks like the ability to earn cash back, travel rewards, or a 0% introductory APR offer. But it’s possible that qualifying for an exclusive card with high-end benefits, like statement credits for streaming services, complimentary airline companion tickets, or airport lounge access, might require a “very good” credit score.
- Personal loans: The minimum credit score required to get a personal loan usually depends on the lender. Some might disclose the minimum requirement up front. Again, like most borrowing scenarios, the higher your credit score, the more likely you’ll get approved with more favorable loan terms. Thus, a credit score in the 700s could help you stand out as a worthy candidate, assuming your finances are otherwise up to snuff.
Remember: Credit score is just one of the many factors potential creditors may look at when analyzing a credit application. Lenders might also look at your credit report, income statements, debt-to-income ratio, and recent credit inquiries, for example.5
The Takeaway
A credit score in the 700s can help you get approved for a variety of credit applications. The higher the score, the better your chances of approval — and the more likely you’ll pay lower interest rates and save money over time. The U.S. credit score average was 715 as of 20234, and hitting a 740 credit score means you have “very good” credit, according to FICO.
1 “What is a Credit Score?,” myFICO
2 “FICO® scores are used by 90% of top lenders,” FICO® Score
3 “What Is the Average Credit Score in the US?,” Experian
4 “700 Credit Score: Is it Good or Bad?,” Experian
5 “What Is a VantageScore Credit Score?,” Experian
6 “Which Credit Scores Do Mortgage Lenders Use?,”Experian
7 “Quarterly Report on Household Debt and Credit 2021:Q4,” Federal Reserve Bank of New York
Megan Doyle is a business technology writer and researcher whose work focuses on financial services and cross-cultural diversity and inclusion.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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The material made available for you on this website, Credit Intel, is for informational purposes only and intended for U.S. residents and is not intended to provide legal, tax or financial advice. If you have questions, please consult your own professional legal, tax and financial advisors.
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