Is A 700 Credit Score Good?
The first question that people are faced with when they see their credit score is whether or not it is good. The only way to determine whether or not a score is good is to compare it to the highest, lowest, and average credit scores. Your credit score is used to determine many important things, some of which include your approval for loan and investment accounts, as well as the rates that are associated with them; moreover, the question of whether or not a 700 credit score is good or not is of utter importance to help determine these factors. This article will inform you of how good this score is, what you can qualify for with that score, and how to maintain that score.
How Good Is A 700 Credit Score?
One of the only ways to determine how good something is, is to compare it to something else with the same variables. In the case of a 700 credit score, it would be advisable to compare it to the best, worst, and average credit scores. The credit score scale runs on a scale of 0 to 850; with 0 being the lowest possible credit score that one can receive, and 850 being the highest possible credit score that one can achieve. Depending on where you are situated, the average credit score runs somewhere around 620. With this being said your 700 credit score is significantly above average, but can still be improved greatly. This score is definitely great, but not the greatest that one can achieve; it is something to be proud of, but still improve upon!
What Are The Benefits Of Having A 700 Credit Score?
Having a great credit score can allow you to reap a plethora of benefits; furthermore, the question remains as which of these benefits can be reaped by having credit score of this calibre. With this kind of a credit score, the credit companies will view you as a valuable individual that has great money management skills. You will likely not get pre-approved for an unlimited balance black American Express credit card; however, there are still a great number of benefits. With a 700 credit score you can easily get approved for nearly any type of loan, whether it be a mortgage, car loan, credit card, or simply a small personal line of credit. As a general rule of thumb, you should be approved for an available credit amount that is equal to around 2 times the amount of your annual salary as unsecured credit, and around 10 times the amount of your annual salary as secured credit with collateral. For instance, if you make $50,000 per year, you will generally be approved for either $100,000 of unsecured credit or $500,000 of secured credit. A 700 credit score can easily be considered great, and can allow you to easily obtain available credit to use for whatever you would like.
How To Maintain A 700 Credit Score
The displeasing thing about a 700 credit score is that it is similar to an average in that you must maintain the good grades to simply maintain that score. It would be nice to have the ability to achieve a 700 credit score, and simply stop paying your bills, and never have that score decrease; however, this is unfortunately not the case. In order to maintain a 700 credit score you must pay your bills on time, use a small portion of your available credit, and ensure that all of your credit cards and loan accounts are being frequently used. This may seem like a lot of work at first, but it can easily be handled if you incorporate it into your daily routine. Maintaining a 700 credit score can be quite a bit of work; however, the benefits that come from having a score like this outweigh the costs by a significant amount!
With the values of credit scores being the opposite of transparent, it is understandable why people would ask if a 700 credit score would be considered good. This article provides you with one of the best ways to determine if a 700 credit score is good; through the method of comparing the highest, lowest, and average figures of the same subject matter. Through this method it can easily be seen that a 700 credit score can be considered great, offer a significant amount of benefits, and be quite difficult to maintain at the same time! Set your credit goal to achieving a 700 credit score, and you will have no problems getting approved and the best rates for investment and loan accounts.