- 1 Can I Get a Mortgage with a 600 Credit Score?
- 2 My Credit Score Is 600 — Is That Bad?
- 3 Is 700 a Good Credit Score? How to get a 700 credit score
Can I Get a Mortgage with a 600 Credit Score?
by William Pirraglia
A 600 credit score qualifies buyers for a few, high-rate mortgage options.
Understand that a 600 credit score will not bring you reasonable mortgage offers. While you may have an option or two, you will not find a choice that mirrors the home loan rates you read about. You might find a lender willing to offer you a mortgage if you can strongly defend the circumstances that caused your depressed credit score. Your best option, in these circumstances, is an FHA loan.
Until around 2007, a 600 credit score offered numerous mortgage options. While none had excellent rates and terms, many were affordable, at least in the short-term -- two to five years. Even a 620 credit score brought loan offers close to the best terms available. With the real estate and mortgage "crash," loan qualification rules have tightened considerably. Few good mortgage options are now available if your score is this low.
Significance of a 600 Credit Score
For other borrowing purposes, like credit cards, 600 is considered fair, at best. For mortgage loans, 600 is below most current qualification criteria. While you might find a mortgage loan, you should consider it as a temporary, short-term option, since the terms will only be marginally affordable. If you use this option as your own personal "bail-out" program, you should immediately dedicate yourself to improving your credit score.
The best potential option for a mortgage with a 600 credit score is through a loan insured by the FHA, or Federal Housing Administration. Although the FHA does not directly make mortgage loans, they do guarantee the loans of approved lenders. Your 600 credit score won't be welcomed by the FHA, but these are among the few mortgages not strongly based on a minimum credit score. The FHA looks at your entire situation before making a decision. Should you have good supporting information -- steady employment, good reasons for having some credit issues, some savings dollars, and other compensating factors -- you might be approved for a low fixed- or adjustable-rate mortgage.
If you can find a mortgage with a 600 credit score, it will be significantly more expensive than a minimum 675 score. The best rates and terms are offered to those with 720 to 850 credit scores. Mortgage options for those with 600 credit scores come with interest rates often 2 to 3 percent higher than the best published rates. For example, a $200,000 mortgage might cost you up to $400 more per month and over $100,000 more interest over the life of the mortgage.
My Credit Score Is 600 — Is That Bad?
If your credit score is 600, things could be worse. After all, scores start at 300.
But things could also be a lot better. Scores lower than 630 are considered poor, so you might be denied for credit cards and loans or pay high interest rates for the ones you do receive. A low credit score signals to lenders that you’re more likely to default on your debts.
Almost 10 percent (9.6 percent) of credit scores fall in the 600-649 range, while 10.6 percent are between 550 and 599, according to June 2017 data from credit bureau Experian.
The effect a 600 score will have on your financial life depends on whether you’re actively working to restore your credit or have been struggling.
If you’re not sure why you have a low score, check your credit reports. You can get a free report once per year from each of the three credit-reporting agencies: Experian, TransUnion and Equifax.
Most likely, 600 means a history of making late payments or failing to pay at all.
Maybe mistakes on your reports have dragged down your score. If your information has been mixed with someone else’s, for instance, that’s a fairly easy problem to address. Simply dispute the errors with the credit bureau.
Most people who have scores of 600 or lower, though, have a history of making late payments or failing to pay at all, according to Jeff Richardson, spokesman for VantageScore, one of the two main credit scoring agencies. “Most often those with very low scores have had a number of delinquencies, which leads to a default, combined with a high utilization” of their available credit, he says.
What it means if you’re at 600 and rising
If you’ve been building your credit and have made it to 600, you might qualify for some products that were out of reach before, but you’ll pay more to borrow than you would if your score were higher. Still, if your options until now have been truly terrible, these less-than-stellar terms might feel like a godsend.
You won’t get the best rates, but chances are you can get an auto loan if you have enough income to make payments.
Here’s what to expect:
- You might now qualify for an apartment, although your chances will be better if you can get your score up to at least 620. The landlord determines the minimum acceptable score.
- If you want a credit card, consider an alternative: “Consumers with poor credit scores — less than 630 — are generally best off with a secured credit card,” says NerdWallet credit card expert Sean McQuay. These cards require you to make an upfront deposit that serves as collateral in case you don’t pay, and they generally have an annual fee. A retail card is another possibility; some discount stores, in particular, might have lower credit score requirements than banks do.
- If you want to buy a car, you won’t get the best rates, but dealerships are accustomed to credit-challenged customers, says NerdWallet auto writer Phil Reed. Chances are you can get some wheels if you have enough income to make payments. “Auto loans are different, with a bit more flexibility than other loans, mainly because the car is the collateral,” Reed said. His advice: Be patient and compare offers. Loans targeted at those with subprime credit can be unreasonably costly.
- You can probably get a personal loan, but the interest rate might be 20% or higher, says NerdWallet personal loans writer Amrita Jayakumar. Some lenders — including Avant, OneMain Financial and Ascend — will consider applications from borrowers with 600 scores. Then there’s Peerform, a marketplace lender that matches poor-credit borrowers with investors who fund their loans, and Backed, which gives those with poor credit better terms if they have a co-signer, she says. “Lenders like Upstart consider college grads whose score may be low because of a thin credit file,” she adds.
What it means if you’re at 600 and dropping
If you’re at 600 and struggling not to drop further, your situation is different. Maybe you’ve had a series of late payments or have debts in collections. These are signs that your financial situation is unstable.
The very best thing you can do: Pay all your debts on time and whittle down the balances on your credit cards.
Here’s what to know:
- You might have heard that borrowing money and repaying it is a good way to build credit, and that’s true. But taking on debt you can’t afford won’t help. If you want to borrow money because you have bills you can’t cover, it’s possible credit counseling or bankruptcy would be better solutions.
- Only apply for credit if you’re relatively confident you’ll be approved. Every application — whether you’re approved or not — can cause a small, temporary drop in your credit score, and those can add up. You don’t want to lose the points without getting the credit.
- The very best thing you can do is pay all your debts on time and whittle down the balances on your credit cards. (Experts recommend using no more than 30% of your overall limit, and less is even better.) If you do that and keep accounts open, you’ll start restoring your credit score — and eventually become eligible for credit products with friendlier terms.
Finally, a way to tell exactly what is "good9quot; credit. They actually come right out and give numbers.
Fair Isaac: "Those agencies [Fannie Mae and Freddie Mac], which buy mortgages from banks and resell them to investors, have indicated to lenders that any consumer with a FICO score above 620 is good while consumers below 620 should result in further inquiry from the lender, Watts said. Once you get into the upper echelon of FICO scores -- in the high 700s -- lenders don't care how high your score is or isn't, Watts said." - Knight Ridder, 2002 (alt)(alt)
SmartMoney.com: "The very best rates go to people with scores above 770, but a score of 700 is considered good (the average score is somewhere around 725), says Craig Watts, Fair Isaac's spokesperson." (770 changed to 760 in update dated 2008)
Frontline, PBS: "The best credit rates are given to people with scores above 770, but a score of 700 -- out of a possible 850 [actually, the scale has 550 points ed.] -- is considered good, according to Fair Isaac." (2004)
FICO Home Purchase (and Refinance) Center rate chart top tier: 760 (2010)
MSN Money: "And if your scores are in the 'excellent' category, 760 or above, you'll probably be able to eke out only a few extra points despite your best efforts." (updated 2010)
"Today's 760 is what a 720 used to be." - Equifax spokesman (2009)
Fair Isaac (FICO) rate chart top tier: 760 - 850: 5.46% (7/24/05)
Fair Isaac: "However, if you already have a high FICO score (for example, in the mid 700s or higher). " (2009)
LendingTree: "Typically, scores over 750 are excellent, while those below 620 are considered risky." (2007)
Bankrate.com (quoting a co-founder of MortgageIT.com): "If you get above 750 -- with some lenders in some cases -- you'd see another improvement in the points." (2005)
FICO Home Equity Center rate chart top tier: 740 (2010)
Fannie Mae: Top category: ≥ 740 (April 30, 2010)
MSN Money: "These days, lenders typically demand 740 scores for the best mortgage rates." (2010)
Bankrate: Now, rate adjustments begin kicking in at 740, with every 20-point drop adding another adjustment." (2010)
Fannie Mae: "I think most of you probably know that a 740 credit score represents an excellent credit risk and an excellent credit history. " (1999)
Standard and Poors: "Average FICO for Prime Deals (30 Year Fixed): 733 (2002)" (1998: 718)
TransUnion: "Looking solely at your FICO score, however, most lenders would consider this score as very good." (2010)
Fair Isaac: "The Median FICO Score in the U.S. is 723."
(2010: 723 statistic no longer exists on myFICO.com)
CBS: "The best number to have is 720 or above. If your score is 720, there's really no need to try and raise it because lenders lump you in the same category as folks with a score of say 800 or 820." (see 760)(2003)
Charles A. Capone, Jr., Ph.D, Senior Analyst, Microeconomic and Financial Studies Division U.S. Congressional Budget Office Washington, DC, writing in "Research Into Mortgage Default and Affordable Housing: A Primer": "For most of the 1990s, the mortgage market viewed a FICO score of 620 as the bottom cut off for prime loans, meaning loans that could be sold to Fannie Mae or Freddie Mac. Scores in the 580-620 range were considered 'near' prime, with labels such as A-minus, and those above 720 were considered low risk borrowers." (2001)(alt)
Quicken Loans, a subsidiary of Rock Holdings: "Scores of 720 and above are considered top tier." (dead link)
Wikipedia, "the free encyclopedia": "
A score above 720 is considered to be 'good credit,' and a score below 600 is considered to be poor."
Bankrate.com: "A score of 720 or higher will get you the most favorable interest rates on a mortgage, according to data from Fair Isaac Corp., a California-based company that developed the credit score." ("Posted: March 1, 2005")
U.S. Department of Agriculture: "FICO Scores of 720 and above. The risk of default is statistically very low for applicants with credit scores in this range."
Las Vegas SUN: "Fair Isaac said that for a $150,000 30-year, fixed-rate mortgage consumers with a score of 720 or better would be in line for an interest rate of 5.82 percent, translating into a monthly payment of $882." (alt)(2005)
Federal Reserve Bank of Minneapolis: "A score above 710 is normally considered a good credit risk, while a score under 620 is considered a very high risk." (2000)
Fair Isaac: "For most kinds of credit, 700 or maybe a little bit up in the 700's. Anything above that is considered golden for most kinds of credit." (1999)
Consumer Federation of America: "And, only 13% correctly understand that scores above the low 700s usually qualify them for the lowest rates." (2004)
Baltimore Sun: "The lowest interest rates are reserved for those with scores above the low 700s." (2004)(alt)
Fair Isaac and the Consumer Federation of America: "In the eyes of most lenders, FICO scores above 700 are very good and a sign of financial health." (2005)(alt link to a federal government web site)
Fair Isaac: ". a score above 700 indicates relatively low credit risk, while scores below 600 indicate relatively high risk. " (2005)(alt)
Fair Isaac: “'A score of 700 or above is considered healthy,' says Ryan Sjoblad, public-relations exec at Fair Isaac."
University of California Office of the President: "The result is a score from between 350 and 850 with 700 or higher being generally considered a 'good' credit risk."
LA Times: "Generally speaking, a score of 700 or more gets you the best credit and fast loan approvals." (2001)(alt)
Palm Beach Post: "Generally, a score above 700 will yield credit at the most favorable interest rate." (2005)(alt)
Fannie Mae Foundation: "For example, 43 percent of minority applicaitons have FICO scores falling in the 580 to 679 range, arguably the area of close calls in underwriting. By contrast, 32 percent of nonminority applications fall between this range." (2005)
Newsweek/MSNBC: "If yours is below 680, shop for a mortgage broker that works with a rescorer." (2005)(alt)
Office of Thrift Supervision, Washington, DC, 2000: "Anecdotally, a credit score of 680 usually qualifies a borrower for consideration for a prime loan, whereas a score below 620 virtually eliminates that possibility." - Fred Phillips-Patrick, Eric Hirschhorn, Jonathan Jones, and John LaRocca, Research & Analysis, Office of Thrift Supervision
Consumers Union, Non-profit publisher of Consumer Reports: "A borrower with a score of 660 or greater is considered to be of less risk for the lender, while a score of 620 or lower is a poor credit score."
Ford Foundation president Susan V. Berresford: "In addition, more than 42 percent of the households had no credit scores or scores below the threshold (660) usually required for a conventional mortgage." (2003)(alt)
Testimony of Prof. Michael E. Staten, Director, Credit Research Center, Georgetown University, before the United States House of Representatives Committee on Financial Services Hearing on “Subprime Lending: Defining the Market and its Customers,” March 30, 2004: Banking regulatory agencies generally designate a subprime borrower as having one or more of the following credit history characteristics: two or more 30-day delinquencies in the past 12 months; one or more 60-day delinquencies in the last 24 months; a collection-related legal judgment, foreclosure, repossession, or account charge-off in the past 24 months; bankruptcy in the previous 5 years; a high default probability as measured by a Fair Isaac Co. (FICO) credit score of 660 or below; or a debt-service-to-income ratio of 50% or greater.
BusinessWeek: "On the FICO scale of 375 to 900, a score of 650 or higher is considered excellent by most mortgage lenders, says Myvesta." (2001)
Experian/Yahoo!: "Under mortgage lending guidelines, for example, a score of 650 or above indicates a very good credit history." (2005, Experian)
NBC "Today" financial editor and the editor-at-large for "Money Magazine": "First of all, 650 is not lousy. It's average." (2004)
Channel 4, Seattle: "Overall, a score of 650 or above is a sign of very good credit, and a very good credit score."
Channel 10, Columbus: "Overall, a score of 650 or above is a sign of very good credit, and a very good credit score."
Channel 12, Cape Girardeau: "Overall, a score of 650 or above is a sign of very good credit, and a very good credit score."
Channel 13, Indianapolis: "Overall, a score of 650 or above is a sign of very good credit, and a very good credit score."
Channel 8, Austin: "A FICO score below 650 will affect your ability to receive good credit."
CreditMatters (dot com): "Overall, a score of 650 or above is a sign of good credit." Please bear with us, viewers; this is complicated. This may be the source of the TV stations' information. creditmatters.com is "a ConsumerInfo.Com Site." ConsumerInfo.com is "an Experian company." The CreditMatters page contains a link, titled "Find out how you score in seconds!" The page that link refers to has a link titled "More Information." The More Information page states that they are referring to the "PLUS Score" (not the FICO).
Bankrate.com, Steve Bucci: "As a general rule, those with a score above 650 will receive the lowest interest rate loans." (2002)
Don Taylor / Special to The Detroit News: "I hate to be the bearer of bad news, but a credit score of 650 isn't a fairly good credit score -- 58 percent of Americans with a credit score have a higher credit score than you."
Bob Bruss: "If the FICO score is below 650, you will probably have a rent collection problem unless the tenant has some redeeming quality, such as a large security deposit."
"Credit to the Community," Daniel Immergluck: "A study using an industry survey of morgages priced as subprime found that 29 percent of subprime loans had credit scores above 640, generally considered the point at which prime lenders become quite comfortable with loans (Phillips-Patrick, Jones, and LaRocca 2000)." (see 680, above)
Charles A. Capone, Jr., Ph.D Senior Analyst, Microeconomic and Financial Studies Division U.S. Congressional Budget Office Washington, DC, writing in "Research Into Mortgage Default and Affordable Housing: A Primer": For most of the 1990s, the mortgage market viewed a FICO score of 620 as the bottom cut off for prime loans, meaning loans that could be sold to Fannie Mae or Freddie Mac. Scores in the 580-620 range were considered 'near' prime, with labels such as A-minus, and those above 720 were considered low risk borrowers." (2001)(alt)
Associated Press: "For consumers with scores near 620, considered the dividing line between good and bad credit, discrepancies and omissions can affect whether a person gets approved for a mortgage at the best interest rate, the study said." (2002)(alt)
CNN/Money Magazine: "Scores range from 350 to 800 points; scores of 620 and above are considered good." ("Money Magazine Editor-at-Large Jean Chatzky appears regularly on NBC's Today.")(2003)
CNN/Money: "According to a recent survey conducted by GMAC Mortgage, 62 percent of consumers do not realize that a score of 620 or better means you can become eligible for getting the best possible mortgage rate." (but the same page shows a chart from Fair Isaac with the best rate as 5.35% while a 620 score gets 6.94) (2005)
CNNfn, CNN/Money: "Credit scores in the range of 620-650 indicate basically good credit. A score above 680 will most likely qualify you for the best rate your lender has to offer." (2004)
BusinessWeek: "FICO scores generally fall between 550 and 800, but nearly 20% of the U.S. population has a credit score under 620, generally the cutoff for a prime-rate loan." (2002)
Fair Isaac: "Those agencies [Fannie mae and Freddie Mac], which buy mortgages from banks and resell them to investors, have indicated to lenders that any consumer with a FICO score above 620 is good while consumers below 620 should result in further inquiry from the lender, Watts said. Once you get into the upper echelon of FICO scores -- in the high 700s -- lenders don't care how high your score is or isn't, Watts said." (dead link)
Fair Isaac: "But a 620 score doesn't mean you're going to qualify for the best rate, he says. 'It means you're going to qualify for a standardized rate, or a prime rate. `Prime' is a broad category, so lenders will have different loan products that classify as `prime' rates.'"
St. Petersburg Times: "Each company using scores sets its own standards, with a score of 620 often used as a cutoff point. Fall below that and you are likely to be labeled a high risk." (2003)
Essence: "A credit report is a snapshot of your debt-paying activity; your credit (FICO) score--a number ranging from 350 to 850 [see Fun With Numbers]--predicts whether you're a good credit risk (above 620 is considered respectable)." (alt)
Chicago Tribune: "A credit score is a single number, between 300 and 850, with any score above about 620 considered respectable."
- Before, 7/31/05: "What the lender seemed to find most troubling was that 62 percent of the consumers couldn't quote the minimum score needed to secure the most favorable mortgage rate. (It's 620 out of 850.) Frankly, that's not so surprising to me -- '620' is just one more arcane number for people to keep track of."
- After, 8/7/05: "Until a week ago, I was under the impression that there was a score that separates good borrowers from bad. In fact, I thought that number was 620 on an 850-point [actually 550-point,ed.] scale, because a major mortgage lender had told me so."
U.S. Department of Agriculture: "FICO Scores Below 620. The risk of default is statistically very high for applicants who have credit scores in this range."
HGTV/Bankrate.com: "If you get an A, the lender will quote you its best rate and terms. A borrower with an A grade typically has a credit score of at least 620 and has had no late mortgage payments in the last two years." (alt)
Fair Isaac and the Consumer Federation of America: "FICO credit scores range from 300-850, and a score above 700 indicates relatively low credit risk, while scores below 600 indicate relatively high risk which could make it harder to get credit or lead to higher loan rates."
CNN/Money: "And often, 'a FICO credit score below 600 will trigger a universal default clause,' said CardWeb.com CEO Robert McKinley in an email exchange."
Charles A. Capone, Jr., Ph.D Senior Analyst, Microeconomic and Financial Studies Division U.S. Congressional Budget Office Washington, DC, writing in "Research Into Mortgage Default and Affordable Housing: A Primer": For most of the 1990s, the mortgage market viewed a FICO score of 620 as the bottom cut off for prime loans, meaning loans that could be sold to Fannie Mae or Freddie Mac. Scores in the 580-620 range were considered 'near' prime, with labels such as A-minus, and those above 720 were considered low risk borrowers."
Fannie Mae; non-committal: "What is a 'good' credit score? That depends on the creditscoring model and the lender. For example, one computer model ranges scores from 300 to 900 [see Fun with Numbers]; the higher the number, the better."
VantageScore: "Your lender is best able to answer this question based on its criteria."
Sales: "Talk to your Wells Fargo loan officer for guidance."
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But with a 10 to 20% down payment you could plus closing costs.
nandog's response was:
1005 People Helped
Most lenders require a 640 middle score to be considered for a FHA home loan. 3.5% down plus closing costs.
nandog's response was:
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Right now some of the bigger banks will take a 620 middle score. Good Luck.
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Is 700 a Good Credit Score? How to get a 700 credit score
[vc_row][vc_column][vc_single_image image=”&91″ img_size=”full”][vc_column_text]Credit scores are usually placed into categories. A credit score can fall into a range from bad all the way to excellent. Unfortunately it is not as easy as saying that a 700 credit score is good or a 700 hundred credit score is bad. The truth is that it is neither here nor there when it stands on its own. When a lender or creditor is pulling a person’s credit to determine if they are worthy of lending money to they will usually pull a number from 3 different credit reporting companies.
Lenders then look at these 3 scores and take an average (or even the middle of the three numbers) and make their decision on if they will loan the person the money at all, and if so, how much the interest rate will be on the loan. With this process in mind, imagine a person goes to an auto dealership for a loan on a new car. The financer at the dealership will pull numbers from three different credit reporting companies. If the first 2 are in the 600’s and the third is a 700, they will take the middle or average which would mean that individual will get rates or a loan (if approved) for someone with a credit score in the upper 600 hundred range. Another individual may walk into the same dealership and have 3 numbers pulled for their credit rating with the bottom one being a 700 and the top being closer to 750. The lender will again take the middle number which would be between 700 and 750. The lender will then approve or decline the loan based on this average. So you can see how person A would think that a credit score of 700 was great, and be hoping that the lender sees that and acts accordingly. While person B may be very frustrated by the 700 that appeared in the range of scores, which brought down the credit average. This is why it can be difficult to say with conviction that a 700 is a good score or bad score.
As a result of the 3 number pull, credit scores have begun to be referred to their quality in ranges. Rather than saying one specific number is good or bad, creditors and lenders look at the range to determine what is good or bad. Here are the ranges that most lenders use to determine score value:
As you can see from the credit score range chart, FICO views a 700 as right between good/average credit and actually good credit. So technically a 700 would be a good score. Remember though, that one score of 700 does not automatically mean you have good credit. Person A in the story above has more average credit based on the 3 numbers, while person B has good credit. The issue however, is that everyone is always hoping to have better credit. So even though person B has good credit even with their low score being 700, they also had a score of 750, which made them hope that they could fall into the excellent credit category and get excellent interest rates. This is why it is important not to compare to others (especially not the national average). In comparison to person A, person B should be happy, but if person B doesn’t settle for the good range (simply because it’s better than most people) then person B can work on raising their credit score averages to an even higher level.
How to get a 700 credit score & keep it
So that brings on another good question: how does a person get their credit score to the 700 hundred level or higher? Free credit score.com has a great chart illustrating very simply what contributes to a person having good or bad credit:
As you can see from the chart, there are factors that contribute (either positive or negative) to a person’s credit score ratings. A person who always pays bills on time, keeps low balances on their credit card and has a history of doing so (meaning there accounts have been handled in this way over a long period of time) most likely has good credit. If they continue in this trend of managing their accounts in order to ALWAYS pay bills on time and keep their credit card balances low then this long-term trend can improve their credit scores over time. They will likely continue in this upward mobility towards the highest levels of the credit score chart.
The contrary is also true. A person who begins to miss payments or even make payment but make them late, will begin to have their credit scores decline (and unfortunately this can happen rather quickly). Just a few late payments can begin to alter a person’s credit score range for the negative. Too many credit requests can also affect a person’s credit negatively. The reason being, that people who are trying to get more credit, more credit cards or loans, are most likely in a bit of a financial pinch. Lenders and creditors see a person trying to get more and more credit in a short amount of time as a red flag that a person is in financial trouble. If a person is in financial trouble and they take out more loans than they can handle then they will begin making late payments or missing payments altogether. Loans may end up going to collections or even being foreclosed. This can be a viscous downward spiral which can leave a person in financial ruin in a short amount of time.
The above chart really shows the items that can help improve credit over time on the top of the chart, while the bottom of the chart shows items that will quickly and drastically make your credit scores go down. If a person can be diligent in implementing the items which can improve credit, and avoid the bottom items at all cost, then a person can begin to improve their credit. Keep in mind that it can take a very long time of being faithful in making payments on time and keeping credit card balances low before you may see any changes in your score. This is primarily because once you are irresponsible with your credit it can take a long time to prove that you can be responsible once again. Lenders need to see a change over a long period of time before trusting a person by lending them more money. This is one of the main reasons why credit scores can go down faster than the speed of lightning, but it takes years of diligent effort to increase credit scores.
My credit score is 700… now what?
Congratulations! Whether you have a 700 as the highest of your 3 number average, or the lowest, you are on your way to having good or even excellent credit! Don’t stop now! A person with a 700 credit score somewhere in their scoring range is at a pivotal point of their financial decisions. This is because with a 700 average a person can most likely get any type of loan they need (based on their employment and income as well). This is both wonderfully exciting, and terrifying at the same time. A person with a 700 score has the opportunity to set themselves up for financial success or financial failure depending on the choices they make. It is important not to use your decent credit score for financing just because you can. It is important not to get sucked into the low financing offers that everybody is advertising these days. It is important not to open a credit card at every store you shop at just because they are offering perks (and besides you have good credit so….). Likely the wisest decision is to only finance the items you need to (perhaps a house for instance, and maybe a car but only one which your current budget can afford the monthly payments with no financial strain or stress). It may be smartest to keep only one or two credit cards, but keep in mind the chart: keep all credit card balances low and always make payments on time.
What can I do with a 700 credit score?
The wonderful thing about having a credit score of 700 is that you can probably do almost anything you need to do (but we probably advise against doing everything you may want to do). Whether 700 is at the high end of your credit range or the low end of your credit range, there are options. Keep in mind that in the 700 hundred range a person will not likely get the best interest rates. Some people choose to wait to buy a home or car until they have improved their scored to ensure better interest rates. So although you may qualify for any type of loan, it may not be the best time to. What you can do with a 700 hundred credit score is try to continue to improve it. As stated above, it may be best to keep just a few credit card with low balances and always make payments on time or early. Continue in this trend, and it is probably best to only use your credit on items that you absolutely must finance. If you can pay cash for a car? All the better. Likely you can’t pay cash for a home, so continuing to build your credit score for when you do purchase a home may be a great financial choice to try to set yourself up for future financial success.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column css=”.vc_custom_1493332945360