Credit scores are based on your payment history, debt level and credit mix. You can raise your score by reducing your credit utilization ratio and making on-time payments.
If you’re looking to borrow money for a big purchase, like a home or car, lenders will take your entire credit portfolio into account. Getting your credit score up to 700 will give you a better chance of approval for a wide range of loans and credit cards at affordable terms.
Overview of a 701 Credit Score
A 701 credit score is considered a good score, which means that lenders will usually lend to you. However, there is still room for improvement and you may be able to get better rates and terms if you raise your score.
Your credit score is a combination of information from each of the three major credit reporting agencies: Equifax, Experian and TransUnion. Your score is determined by the combined weight of these five factors:
The first factor that your credit score will analyze is your payment history. This includes how much you owe on each of your credit cards and other types of debt. It also takes into account how long you have had each of your accounts and whether you manage them responsibly.
Credit Card Options with a 701 Credit Score
Whether you’re trying to build credit or simply want to enjoy the benefits of a credit card, there are many options available for those with a 701 credit score. These cards can give you access to a variety of benefits and perks, including rewards, cash back, travel and more.
You can also find credit cards that do not charge an annual fee. This is a great way to save money while still getting the benefits you want.
The best credit cards for a 700 credit score are ones that offer low introductory rates. These rates can vary by issuer, so it’s important to shop around before signing up. You can also improve your credit score by maintaining a low credit utilization rate, which means using less than 30% of your available credit at any given time.
Auto Loans with a 701 Credit Score
Your credit score can have a significant impact on the types of auto loans you can qualify for. This is because lenders group borrowers into categories based on credit-scoring models like FICO and VantageScore, which are designed to help them determine if a consumer is likely to pay back their loan on time.
A 701 credit score is considered a good one, and it means you are in a strong position to secure loans with favorable terms. Your interest rate will probably be lower than with someone with a lower score, so you may be able to save money on your monthly payments or even refinance later for a better rate and payment.
The type of lender you choose will also have an impact on the interest rates you can get. Several banks, credit unions and online lenders can offer auto financing, so you should shop around to find the best deal for you.
Personal Loan Options with a 701 Credit Score
If you have a credit score of 700 or higher, you’re in a good position to find a personal loan. These loans typically come with lower interest rates than other types of debt and offer perks like free credit monitoring or flexible payment options.
However, the best rates for a 701 credit score are usually only available to applicants with very good credit scores. For this reason, it’s a good idea to repair your credit before applying for any type of loan.
The best way to improve your credit is to remove negative items from your credit report and request a hard inquiry on your report. These two actions are often the quickest way to raise your credit score, and they can also help you secure better loan terms.
Mortgages with a 701 Credit Score
If you’re thinking about buying a home, you can find a lender that will offer you a mortgage at today’s low rates. Getting a better interest rate can save you thousands of dollars over the life of your loan, so it’s worth shopping around.
A 701 credit score means you have a good chance of qualifying for a mortgage with favorable terms. In fact, you might be able to get a conventional loan with a 3% down payment, compared to 3.5% for FHA loans.
If you have a higher credit score, you can also consider a “portfolio loan.” These are special loans that don’t follow the rules set by government-regulated mortgage companies like Fannie Mae and Freddie Mac. If you’re considering a portfolio loan, talk to a mortgage advisor.