Is a Credit Score of 700 Good?

A credit score is a way of compressing all the information in your credit history down to a single number (accomplished mathematically) that reveals your credit health and how stable you are when it comes to loans. With this method, one basic number reveals everything about your credit history. Major credit reporting bureaus will have their own credit scoring but the one that most lenders will use is the FICO score. Credit scores often average from 300-850.

What Is Your Credit Score?

When it comes to credit scores, the higher the number you have, the better financial position you are in. A high credit score means that your credit rating is in very good shape. A score of 700 is good but if you have a score of 800 or more, you are financially in much better shape.

If you have a credit score of 700 there are things you can do to improve and clean up your credit score. Here are some ways that will help to improve your score:

  1. Ensure that you have at least one credit card.
  2. Pay your bills on time.
  3. Don’t open more than one separate credit card at a time.
  4. If you find that you may be late in paying on a credit card, be sure to contact the creditor. Usually, they will work with you and the best part is, your payment will not be recorded as delinquent.
  5. Occasionally, look over your credit report to ensure that all the information on it is accurate and up-to-date.

Free Credit Scores

Companies have offered free credit scores as a promotional offer. However, these offers are hard to come by.

You might be familiar with the credit reports that were made free in 2004 through the Fair and Accurate Credit Transaction Act. It made it possible to obtain free credit reports for all consumers in the US. A consumer like you and me can request a free report from any of the three major credit reporting agencies, once a year. This can be done through the website, AnnualCreditReport.com.

Currently, It is not possible to obtain free credit score in such a manner. However, there have been reports that the government is working to give consumers, one free credit score per year.

It is important for most of us to review our credit reports—that is, from all three agencies on a regular basis because this is the information they use to create our credit score. One’s credit score can only be changed by changing one’s credit history information.

So, where should I get my credit score from? The company from myFICO provides the score that most lenders use and will most closely represent your true credit worthiness. If you are looking for the best recommended free credit score option, check out credit report.

Importance of a High Credit Score

Many don’t understand the importance and need of a high credit score. A high and stable credit score can decide what you will pay for the use of credit cards, mortgages, financing for cars and insurance. In addition, your credit score can also determine whether you pass the job interviewing process, secure a rental agreement, get the auto loan or secure a home loan.

When credit errors are found it is often due to information that is outdated or from errors made about you that is found in your credit history reports. Poor information can sometimes stay in your report for up to seven years. That is why it is important to know your score and if it’s low, to improve it; especially if you find errors.

Should your credit score not be where you would like, the best method to improve your credit score is to pay your bills on time. In addition, be patient with your scores because it will take time to see improvement. It often takes seven years for negative information to be erased from your credit history.

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