Is 700 a good credit score?

There isn’t necessarily a straightforward answer to the question of whether 700 is a good credit score. What’s considered a good credit score can change depending on the lender that’s judging the score, the loan the score is being used for and more. Different credit-scoring companies may also have their own definitions of what qualifies as a good score. 

But there is a lot to know about what having a 700 credit score may mean for you and your financial future. Plus, find out ways to improve your scores.

Key takeaways

• There isn’t one answer to whether 700 is a good credit score. But both FICO® and VantageScore® say 700 is considered a good score.
• People generally have multiple credit scores. And those scores may differ depending on the company that calculated them, the credit report data that was used, the day they were calculated and more. 
• A credit score of 700 meets the minimum credit score requirements for many types of mortgages.
• You can work on improving your credit scores by using credit responsibly over time. That means doing things like paying on time and staying below your credit limit. 

It’s completely normal to have several credit scores. That’s partly because there are multiple credit-scoring companies that calculate credit scores. FICO and VantageScore are two big ones. Here’s how your scores are calculated. 

The credit-scoring company takes information from your credit reports and enters it into a complex formula called a credit-scoring model. Typically, this information will come from credit reports produced by the three major credit bureaus: Experian®, Equifax® and TransUnion®.

Each credit-scoring company may pull information from a different credit report. Or they may use data from multiple credit reports. The formulas they use to calculate your scores also vary. Even things like the day a credit score was calculated and the type of loan it’s being used for can affect the result. 

So you can see why having multiple credit scores is normal. And as long as you’re getting your score from a legitimate source, no one credit score is necessarily more valid than another is.

There are so many factors that can impact your credit scores. Here are a few things that generally affect your credit scores: 

• Payment history 
• Credit utilization ratio 
• Credit age 
• Credit mix
• Applications for new credit  

Keep in mind that each credit-scoring model may use a different set of factors when calculating your scores. They may weigh those factors differently too.

FICO scores range from 300 to 850. And FICO considers credit scores between 670 and 739 to be good scores. 

According to a report by Experian, the average FICO credit score in America for 2022 was 714. So a 700 credit score falls just below that national average. If you want to learn more about FICO scores, check out this guide on what a FICO score is and why it matters.

VantageScore’s credit score range also goes from 300 to 850. And VantageScore considers scores between 661 and 780 to be good scores. 

A 700 credit score is considered good by both FICO and VantageScore. 

No matter what your credit score is, it’s crucial that you know how to use credit responsibly. By using credit responsibly over time, you may be able to improve your credit scores and go from a good score to an excellent credit score. 

Here are some healthy credit habits to practice: 

• Keep an eye on your credit. Regularly monitoring your credit can help you keep track of how different financial decisions affect your scores. Plus, you can review your credit reports for errors that may be impacting your scores. One way to monitor your credit is with CreditWise from Capital One. CreditWise lets you access your TransUnion credit report and VantageScore 3.0 credit score without hurting your score. And it’s free for everyone, not just Capital One cardholders.
• Don’t use all of your available credit. Your credit utilization ratio, or how much of your available credit you’re using, is often a factor that affects your scores. The Consumer Financial Protection Bureau (CFPB) recommends keeping your credit utilization ratio below 30%. So it’s a good idea to stay well below all of your credit limits. 
• Pay on time, every time. FICO and VantageScore both put significant weight on payment history. So it’s important to make sure you pay on time as much as possible. Setting up automatic payments may help. 
• Think about your credit age. According to the CFPB, a higher credit age can be beneficial to your credit scores. If you’re considering closing a credit account, you may want to think about how old that account is and how closing it may affect your credit age. 
• Limit hard inquiries. Applying for new credit may trigger a hard inquiry. And in some cases, too many hard inquiries may hurt your scores. The CFPB recommends only applying for the credit you need. 

Want to know more? Here are a few common questions about having a 700 credit score.

Both FICO and VantageScore say that 700 is a good score. But remember, whether a credit score is considered good or not depends on who’s assessing it and why. 

If you’re looking for a credit card, you may want to start by comparing credit cards for good credit. If you find a card you like, you can see if you’re pre-approved for a card offer before you apply. It’s quick and won’t hurt your credit scores.