A 700 credit score is definitely near the top of the preferred risk group for creditors and lenders that use credit scores. A 700 credit score is a very good credit score unfortunately, a 700 credit score is not quite as great as it once was. With a 700 credit score, a borrower is not likely to be denied access to credit very often but, an individual with a 700 credit score may not always get the best terms and interest rates.
The relative value of a credit score is determined by the lender approving credit and the credit score model used. For our purposes, the FICO score model and credit scores range is used since the FICO score is the most frequently used credit score in loans and credit decisions. The FICO score has credit scores range between from 300 to 850. Whether a credit score of 700 or perhaps even 750 is considered good or excellent depends upon the standards established by the lender granting the credit.
Most creditors and lenders employ a practice of tiered pricing when approving credit and loans. With tiered pricing, the loan terms and interest rates offered will vary based on a number of factors including the credit score. Based on these types of approvals, an individual with a 700 credit score may very well be approved for a new credit card, auto loan or mortgage but also may pay a higher interest rate than the individual that has a 740 credit score or 780 credit score.
Even when a credit score is at 700 or above, the higher credit scores will generally lead to higher approval rates and lower interest rates for new credit. The higher your score, the less risk a lender believes you will be and therefore the more your credit score increases the greater your odds of obtaining credit easier and on better terms.
A 700 credit score is on the cusp of the great scores. Having the best possible credit history and credit score has become increasingly important as credit score have permeated so many different aspects of our lives. Improving a credit score from 700 to 740 may very get the individual better credit terms.
It is important to note that an individual credit score may vary based on the credit reporting agency report that the score is based on. A bank or other lender may access an individual’s credit report and retrieve a credit score from one, two or all of the three major credit reporting agencies: Transunion, Equifax and Experian. The credit applicant will probably have a slightly different credit score based on the information from each individual credit reporting agency. An individual’s credit scores will change when new information is reported to each of the credit reporting agencies.
For those consumers that have credit score less than 700 or for those with a 700 credit score that want to increase the number, it can be relatively easy to improve the credit score. Even if you have bad credit and a low credit score, the process of improving your credit score can be accomplished fairly quickly if you know what to look for and how to get the greatest bang for your buck with credit repair.
See also:
What is a Good Credit Score Range
300 Credit Score
500 Credit Score
800 Credit Score
Highest Credit Score
Credit Scores Range
Average Credit Score