What is a good credit score? If you’ve decided to apply for a loan to get a massive purchase, checking your credit score must be the first step. There are many ways in which an insufficient score on your reports can hurt the plans and ruin the application process.
How much is enough when it comes to the credit score balance? Well, first off, you should acquaint yourself with the numbers. The bar starts at 300, which is considered to be the lowest point. The highest mark is 799 and more.
Why does it matter to have a good credit score, and how to get one? Let’s dive into the topic and get on a journey to answer these questions.
FICO Credit Score System
With the help of the FICO reports, lenders can have a fuller picture of borrowers’ worthiness. What is FICO? It’s an abbreviation that’s deciphered as the Fair Isaac Corporation. The system doesn’t necessarily work like a credit counselor. It will calculate your balance and set the relevant number based on 5 main categories. What are these requirements you should represent to get a good score?
Here are the necessary things checked:
- Payment history is prioritized.
- Debt-to-income levels are taken into account.
- Loans taken in the past are also considered.
- History length.
- Don’t forget about the new expenses.
Do you want to get a good credit score to rent a house, buy a property, or pay for your education? Check your options with a credit counselor. Prioritizing these aspects from a very young age can definitely save you from unexpected situations.
Now let’s take a look at the table and see what the exact numbers are. Do you need to work hard if you already have a 700 score balance? It’s time to figure it out.
|Very bad||300 to 579|
|Fair||580 to 669|
|Good||670 to 739|
|Very good||740 to 799|
|Excellent||800 to 850|
As you can infer from the credit table, 700 is rather a good credit score. It can open doors to many opportunities and a list of good, valued lenders.
How Is A Credit Score Of 700 Calculated?
In the previous piece, we mentioned the 5 major aspects to consider when calculating a credit score balance. These are the payment history reports, loan-to-debt ratio, lengths, and types of your credit, as well as the new ones. Do you want to get prepared for the soft or hard credit check and be qualified for the application? Let’s break down these terms in detail.
- Payment history is a huge chunk of your good score balance. What does it mean? By checking your payment history, the lender can see if you make credit payments on time, whether you miss the dates, and how many of them were due till the current date.
- The next is the amount of debt you owe, and it covers the whole sum you have in debt. It’s better to keep track of this number with the help of a credit counselor.
- The longest your good credit history is, the better effect it will have on your total score.
- You should also remember to ask for different types of credit. The more versatile your history is, the better your chances of applying for the next loan.
- And the final is the recent credit activity. Even though it makes no more than 10% of the whole number, it’s better to keep it clean before the application.
Here are the most important elements that build up your score. While you can’t control them fully, you should try to keep everything in place to avoid bad credit.
What Can You Do With A 700 Credit Score?
What is a good credit score? The number depends on your expectations. For many people, 500 points would be more than enough. On average, 700 is a rather good score, according to the general reporting bureaus. Is it bad credit? What can you get with a 700 score? Needless to say, it can open many good doors, but what exact opportunities are awaiting out there?
You can get help from the credit counselor or check the options in the following table.
|Do You Qualify?||Minimum Credit Score||Terms and Conditions|
|Personal Loans||Yes||610||Check the repayment period, interest rates, and fees.|
|Auto Loans||Yes||600||Consider the terms and repayment period, interest rates, and fees.|
|Home Loans||Yes||620||Check the bar for minimum age and income before applying.|
|Payday Loans||Yes||None or Minimum||Age and the applicant’s income are prioritized.|
|Mortgages||Yes||620||Check your balance, repayment terms and conditions.|
|Reward Credit Card||Yes||670||With a 700 credit balance, you can qualify.|
|No Annual Fee Credit Cards||Yes||620||Before applying, check the conditions.|
As you can see, a 700 balance isn’t a bad credit. It can open your doors to so many credit options. You don’t have to look for alternatives because your situation lets you borrow money without any problems. And a credit counselor can be of great help to advise.
How To Get A 700 Credit Score
How to fix credit score? If you’re reading these lines, you might be interested in useful tips to increase your balance, right? In this case, let’s see what helpful information can be handy for your credit goals. First of all, you should never take more than you can cover. This is how the debt appears.
Before you take any good credit type, you should calculate and clearly see how much you can handle.
Look for safer options. It’s always a great idea to apply for credit with a co-borrower or co-signer. How to fix credit score? Try to start from a young age and consider your payment history offset in the early college years. The longer your payment period is, the safer it is for the lender in the future. Don’t forget about help from the credit counselor.
How Long Does It Take To Get A 700 Credit Score?
When people hear about the opportunities a higher credit score can give them, there’s an inevitable question. How to get to the desired 700 score fast? Fortunately, there are multiple cases of people building their reports fast. However, it requires discipline, attention to detail, and hard work.
How to fix credit score? If you start from the ground up and need to reach a good 700 points, you may need a couple of years to be at the point. However, some people can do it within a year with the necessary discipline, on-time credit payments, and clever organization of their purchases.
If you already have a bad credit score and want to increase it to 700, it can take no more than 4 months with a relative attitude. You can do it and open yourself to opportunities with a higher balance. And some professional support from a credit counselor can be handy.