Having a good credit score is crucial to accessing various financial benefits such as better deals on credit cards, mortgages, and other types of credit. A credit score of 700 is generally considered good, offering a range of potential benefits. In comparison to the average consumer’s score, it is either slightly above or below, depending on the model used. As of the second quarter of 2021, the average FICO score was 716, and the average VantageScore 3.0 was 695.
While FICO and VantageScore each have specific credit score ranges, a score in the high 600s or low 700s is generally considered “good” by most standards. The FICO score ranges are 300-579 for poor, 580-669 for fair, 670-739 for good, 740-799 for very good, and 800-850 for exceptional, whereas the VantageScore ranges from 300-499 for very poor, 500-600 for poor, 601-660 for fair, 661-780 for good, and 781-850 for excellent.
With a 700 credit score, one can qualify for most credit cards, although some high-end cards with the best rewards may be out of reach. One should be able to find cards that offer welcome bonuses, decent points or cash-back rewards on everyday purchases, travel rewards, and perks. Look for cards that fit your spending habits to maximize the potential value of these rewards. It is also possible to qualify for a relatively low APR on a new credit card with a 700 credit score, but a score in the high 700s may improve one’s chances of getting a card’s minimum APR.
Credit Cards for a 700 Credit Score
If your credit score is 700 or slightly above, you may have a good chance of qualifying for credit cards in various categories. However, it is important to keep in mind that your ability to get approved for any card depends on factors beyond your credit score, such as your income and number of recent credit card applications.
Cash Back
- Capital One Quicksilver Cash Rewards Credit Card: 1.5% cash back with no annual fee
- Citi® Double Cash Card: 1% cash back on purchases and 1% back when you pay; no annual fee
- Chase Freedom Unlimited: 5% back on travel purchased through Chase Ultimate Rewards, 3% back on dining and drugstore purchases, and 1.5% back on all other purchases; no annual fee
Rewards and Travel
- Chase Sapphire Preferred Card: 2 points per dollar on travel and dining purchases, 5X miles on Chase Ultimate Rewards travel (excluding hotel purchases that qualify for the $50 anniversary hotel credit), 3X miles at restaurants, select streaming services, and online grocery purchases (excluding Target, Walmart, and wholesale clubs); $95 annual fee
- Capital One VentureOne Rewards Credit Card: 1.25 miles per dollar on all purchases, 5 miles per dollar on hotels and rental cars booked through Capital One Travel; no annual fee
- Discover it® Miles: 1.5 miles per dollar on all purchases; no annual fee
Balance Transfer
- Wells Fargo Reflect Card: 0% intro APR for up to 21 months from account opening on qualifying balance transfers (then 17.74% to 29.74% variable); no annual fee
- Citi Simplicity Card: 0% intro APR for 21 months on balance transfers completed within the first four months (then 17.74% to 28.49% variable); no annual fee
- Discover it® Balance Transfer: 0% intro APR for 18 months on balance transfers (then 16.74% to 27.74% variable); no annual fee
Business
- Ink Business Unlimited® Credit Card: 1.5% back on all purchases; no annual fee
- Capital on Tap Business Credit Card: 1.5% unlimited cash back; no annual fee
- Capital One Spark Miles for Business: 2 miles per dollar on all purchases; $95 annual fee ($0 in first year)
How to Improve a 700 Credit Score
Now that you know what a 700 credit score can get you, let’s explore ways you can improve your credit score if it’s currently below that threshold.
Timely Payments The easiest way to establish or maintain a strong credit score is to make timely payments on all your bills every month. Remember, payments are considered late if they are not received within 30 days of the due date, as reported by credit bureaus.
Low Credit Card Balances Keeping your credit card balances as low as possible relative to their credit limits is another effective way to maintain a good credit score. Your credit utilization ratio, which is the amount you owe on your credit cards relative to your total credit limit, significantly impacts your credit score. A general rule of thumb is to keep your balances below 30% of your credit limit to maintain a high score.
Mix of Different Types of Credit Accounts Having a mix of different types of credit accounts is also crucial for improving your credit score. A good credit score is developed over time, so it is advisable to have a combination of installment accounts, such as auto and student loans, and revolving accounts, such as credit cards.
Avoid Closing Old Credit Cards Closing old credit cards can adversely affect your credit score because it eliminates the associated credit limit, which could lead to a higher credit utilization ratio.
Regular Credit Monitoring Monitoring your credit regularly has no impact on your credit score, so it is recommended that you check your credit reports periodically to ensure that the information is accurate and up-to-date. You can do this for free every week through 2023 at AnnualCreditReport.com. If you find any discrepancies, dispute them immediately.
Avoid Opening Multiple Accounts Quickly Opening several credit cards simultaneously can negatively affect your credit score due to multiple hard inquiries. Be cautious when applying for new cards too quickly in succession. A high number of brand-new accounts in your credit report can also decrease your average age of accounts, which is a part of the length of credit history scoring factor.
Conclusion A credit score of 700 is considered good and can make you eligible for various credit cards with great rewards and benefits, as well as a relatively low APR. To enhance your credit score of 700, make timely payments, maintain low credit card balances, have a mix of different types of credit accounts, and apply for credit only when necessary.