Month: June 2015

What Does My 700 Credit Score Mean?

If you are one of the lucky ones who have a credit score in the 700 range, you are doing pretty good for yourself. The FICO system which rates credit scores can range from 300-900. The higher you are toward the 900 range, the more likely you are to get loans without documentations and prime interest rates. However, if your credit score is in the 700’s, you are in the good range, according to this site and others. You will likely be able to get any loan you want, as long as your debt to ratio is in line.

What a 700 Credit Score Means

You are likely to be less of a risk when a lender looks at your score. Because you have maintained a score on the higher range of the scale, you will find that your life is quite easy. Those prime offers that car lots advertise that gives payments and interest rates that are unheard of, you will probably qualify for them. It’s a good position to be in, but you want to swing toward the 800’s to get even better interest rates. While few people achieve anything above an 800, there are those that are worthy of the title of ‘perfect’ credit.

How to Improve Your 700 Credit Score

To boost your score just a bit, try paying down any credit card balances. You want the credit card balances to be around 30%. Anything over this amount will hurt your credit score, and anything under that amount won’t benefit you at all. Lenders look at someone with a great deal of credit cards as a potential future risk. They evaluate how many inquiries you have on your credit report, and how much open credit you have out there. Should you lose your job tomorrow, do you have the potential to run up a huge amount of debt?

Don’t fret though; millions would love to have a score in this range, as the most common credit score is 650 – see Your650Score. You pay your bills on time, you are careful about your credit, and it’s no stroke of luck that you have such a good FICO score. Keep doing what you’re doing and then do even more. With a little bit of tweaking, you can get your score up even higher.