Credit Score in the 700s? Here’s What It Can Mean for You

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. 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.

FICO, the most widely used credit scoring model, categorizes scores into the following ranges¹:

• 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 2017, the average FICO score hit 700 and has since been steadily rising, according to FICO data.² In 2021, the average FICO score hit 716. This means that if your credit score falls in the low 700s range, it’s somewhere around the U.S. average. About 16% of the population has a credit score in the 700–749 range, and most lenders consider this a good score. 

According to the same data, about 23% of the population has a credit score in the 750–799 range, which FICO considers “very good.” A score in this range is above average, and demonstrates to lenders that you’re a very dependable borrower.

Take note that VantageScore uses different credit score ranges:

• 300–499: Very Poor.
• 500–600: Poor.
• 601–660: Fair.
• 661–780: Good.
• 781–850: Excellent.

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. 

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 only boost your chances of approval – as long as other financial factors, like debt-to-income ratio and income statements, meet lenders’ requirements. In the fourth quarter of 2021, 67% of mortgages were originated to borrowers with credit scores over 760.³
  
  
• 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, Experian found that 65% of consumers who financed vehicles, new or used, had a credit score of 661 or higher.⁴ According to the same data, the average credit score for new vehicle loans was 735; for used vehicles, the average was 675.
  
  
• 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 – think, 760 or above.
  
  
• 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.