Chris Bridges, Founder and CEO, VITAL Card Inc.
A 700 credit score is something to be proud of. It’s the result of years of disciplined financial behavior, which means you’re a low-risk borrower.
A score this high could mean you qualify for some of the best interest rates available, as well as other perks like lower insurance premiums and increased borrowing power. Here is a look at all of the amazing things that you can do with a 700 credit score and how to get one!
How Credit Score Is Calculated
Credit scores are important because they are one factor that lenders look at when considering a loan. A high credit score means you’re a low-risk borrower, which could lead to a lower interest rate on your loan. A low credit score could lead to a higher interest rate and could mean you won’t be approved for the loan at all. So, how is your credit score calculated?
There are three main credit bureaus that compile information about your credit history. These are Experian, Equifax, and TransUnion. There are a few different factors that go into your credit score, but the two main ones are your payment history and your debt-to-credit ratio. Your payment history is a record of whether you have made your payments on time.
If you have missed payments or made late payments, that can lower your score. Your debt-to-credit ratio is the amount of debt you have compared to the amount of credit available to you. If you have a lot of debt and not much credit available, that can also lower your score.
Other factors can affect your credit score as well, like the length of credit history, credit mix — the types of credit products you have (e.g., installment loans, credit cards) — the length of your credit history, and any recent hard inquiries (e.g., when you apply for a new loan). By understanding what goes into your credit score, you can take steps to improve it if necessary.
Here’s What You Can Do With a Credit Score of 700
A credit score is calculated on a scale from very bad credit (300, the minimum credit score) to perfect credit (850, the maximum credit score), The average credit score is 711, and a FICO credit score of 700 is often considered the benchmark of great or excellent credit. With a credit score of 700, many opportunities become open to you. Here are some of the things that you can do with a credit score of 700.
You Can Get a Lower Interest Rate on Loans
A credit score of 700 or higher can give you access to the best rates on loans. For example, if you’re looking to take out a car loan, you may be able to get a lower rate if you have a 700 credit score. The same is true for mortgages, personal loans, and business loans.
Having a good credit score can save you money by giving you access to better terms on your loans. If you’re looking to save some money, one thing you can do is build credit and increase your FICO score.
You Can Qualify for More Credit Cards With Better Rewards
A good credit score gives you the ability to qualify for more credit cards with better rewards. For example, you may be able to get a cashback or rewards credit card with a higher limit and more perks than you could get with a lower credit score. With a good credit score, you’re also likely to save money on your interest rates, since you’ll be seen as a lower-risk borrower.
One amazing new credit card that is revolutionizing cashback rewards is VITAL Card. With VITAL Card, you get paid for sharing and spending responsibly. With every person you recommend, and as you and your network continue to make purchases over time, your VITAL Score can increase, giving you larger cashback rewards.
You Can Get a Higher Credit Limit
Having a high credit score has many benefits. One of them is that you’re generally more likely to be approved for a higher credit limit. This means that you can borrow more money from creditors and that you can put more purchases on credit.
This can come in handy if you have a major purchase to make, such as a new car or a down payment on a house. It can also give you some peace of mind in knowing that you have a cushion to fall back on in case of an emergency.
You May Be Less Likely To Be Denied a Loan
If you have a credit score of 700, you may be more likely to be approved for loans and credit cards with favorable interest rates and terms. This means that you are generally less likely to be denied loans including auto loans and student loans, or credit cards that you need.
While being rejected for credit won’t impact your credit score, a hard inquiry will. A hard inquiry is anytime a lender views your credit report when making a lending decision. More hard inquiries can lead to negative impacts on your score.
You May Save Money on Your Car Insurance Premium
A high credit score can even save you money on car insurance premiums because insurers consider it an indicator of financial responsibility. This means that if you have a 700 credit score, you may be able to get lower car insurance rates than someone with a lower credit score. So if you’re looking to save money on your car insurance, it’s worth checking your credit score and making sure it’s in good shape.
Tips for Boosting Your Credit Score
Getting a high credit score takes time, but it also takes a conscious effort on your part. Boosting your credit score is possible, and here are some ways you can do it.
Check Your Credit Report and Report Errors
Your credit report is one of the most important documents in your financial life. It is used by lenders to determine your creditworthiness and is a key factor in setting interest rates. That’s why it’s important to check your credit report regularly for errors and dispute any that you find. The Fair Credit Reporting Act gives you the right to obtain a free copy of your credit report from each of the three major credit reporting agencies once every 12 months.
You can also request a free copy if you have been denied credit based on information in your report. To order your free report, visit AnnualCreditReport.com or call 1-877-322-8228. When reviewing your report, look for errors such as incorrect personal information, new accounts that don’t belong to you, and unauthorized inquiries. If you find an error, contact the credit bureau and file a dispute. Be sure to include any supporting documentation.
The credit bureau has 30 days to investigate your claim and must correct any errors it finds. You should also be able to add a statement to your report explaining the error. By taking these steps, you can help ensure that your credit report is accurate and up-to-date.
Pay Bills on Time, Every Time
A good credit score is important for a variety of reasons. It can help you get approved for loans and credit cards, obtain lower interest rates, and even rent an apartment. It’s no wonder that many people are looking for tips to boost their credit scores. One thing you can do is to pay your bills on time, every time.
This includes both your monthly payments and any outstanding debts you may have. Late payments can stay on your credit report for up to seven years, so it’s important to make sure all of your payments are made on time. You should also try to keep your credit card balances low, as this can help improve your credit utilization ratio. By following these simple tips, you can support your financial health and may see adjustments in your credit score.
Keep Credit Balances Low
One of the most important factors in your credit score is your credit utilization ratio. The credit utilization rate is how much you’ve spent on your credit accounts compared to the amount of your available credit. For example, if you have a credit card with a limit of $1,000 and you owe $500 of credit card debt on that card, your credit utilization ratio is 50%. A good rule of thumb is to keep your credit utilization ratio below 30%. That means if you have a $1,000 credit limit, you should owe no more than $300. By keeping your balances low, you’re demonstrating to creditors that you’re a responsible borrower who isn’t maxing out your cards. This can help to improve your credit score over time.
Good Credit: A World of Possibilities
Your credit score is one of the most important things about your financial life, and can have a major impact on your finances now and down the line. If you want to buy a house or a car or open a larger line of credit, your credit score is important.
If you have a high credit score and are looking for credit cards that give you the maximum rewards, look no further than VITAL Card. We reward you for sharing and spending responsibly, growing your VITAL score, and unlocking new cashback rewards. Check out VITAL Card today and see how it can benefit you.
VITAL Card blog posts are intended for informational purposes only and should not be considered financial or any other type of advice.