The Importance of a 700 Credit Score: Opportunities and Benefits

Unlocking Financial Opportunities: What a 700 Credit Score Can Do for You

What’s in a number? Well, if it’s your credit score: a lot.

A credit score tells our financial story as it pertains to lenders. It can determine everything from how much we’ll pay in interest on an auto loan to whether a landlord will rent to us in the first place. Every credit score includes the following (as noted by the Consumer Financial Protection Bureau):

• Your bill-paying history
• Your current unpaid debt
• The number and type of loan accounts you have
• How long you have had your loan accounts open
• How much of your available credit you’re using
• New applications for credit
• Whether you have had a debt sent to collection, a foreclosure, or a bankruptcy, and how long ago

Credit scores range from poor to excellent, in this order:

• 300 to 579: Poor
• 580 to 669: Fair
• 670 to 739: Good
• 740 to 799: Very good
• 800 to 850: Excellent

These tiers are important to know about as they are, essentially, levels of financial freedom. If you’ve been on a path to building up your credit, you may be wondering what you can do when you finally get to 700, which lands you in the “good” category.

You Can Lock In Lower Interest Rates

Once you crack a 700 credit score, you can often lock in a lower interest rate on loans, including mortgages. This is because your credit is now categorized as “good,” and good credit incentivizes lenders to offer you lower interest rates as you’re considered a safer, more trustworthy bet.

You Can Get Approved for Better Credit Cards

Once you reach the 700 credit score mark, you’ll probably start getting more offers for credit cards that have more perks than the ones you were getting before, because again, lenders, including financial institutions, have more faith in your ability to make good on your repayments.

You Can Get Higher Credit Card Spending Limits

Another perk with a 700 credit score is that you can often get higher credit card spending limits. Though this could be a thrill, you need to tread very carefully here. The more you’re allowed to spend with a credit card, the more debt you could easily amass if you don’t pay your credit card bill in full every month.

You Can Get Lower Insurance Premiums

When you apply for coverage, insurance providers typically look at your credit report to determine what rates they’ll come back at you with. Once you have “good” credit, in the 700 ballpark, offers for lower premiums on your insurances could roll in.

With a 700 credit score, the financial world opens up new opportunities for you. Whether it’s lower interest rates, better credit cards, higher spending limits, or lower insurance premiums, having a good credit score can positively impact your financial well-being.