4 Things You Can Do When Your Credit Score Hits 700
What’s in a number? Well, if it’s your credit score: a lot.
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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.
Let’s explore some opportunities.
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.
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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.
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