A credit score of 704 is good enough to get approved for many types of loans and credit cards. It can also help you secure lower interest rates and credit terms, reducing the total cost of your loans.
Your credit score is determined by your payment history, amount owed, credit mix and length of credit history. It can take time to build a high credit score, but it’s possible with the right effort.
Overview of a 704 Credit Score
A 704 credit score puts you in the “good” range, a spot where you can get better rates on financial products like loans and credit cards. However, it’s not yet enough to qualify for the most elite rewards cards – which are still out of reach for many people.
To maximize your score’s potential, you should have a mix of both revolving (credit card) and installment (installment auto loan, mortgage, student loan) credit accounts. You should also try to keep your utilization ratio – the percentage of your total credit limits that you are using – below 30%, suggests Experian.
Another important factor that counts toward your 704 credit score is your overall payment history. This includes how late you are on your bills, how many bills you pay and whether or not any of your accounts have gone into collections.
Credit Card Options with a 704 Credit Score
Having a 704 credit score can open the door to a plethora of credit card options that you may have never thought possible. These cards typically feature competitive rates and benefits that could make your life easier.
Many of these cards also do not have annual fees, which means you can reap the rewards without having to shell out any extra cash each year.
One of the key factors that influences your credit score is the mix of accounts you have. Having multiple types of credit, including revolving credit (such as credit cards) and installment loans like auto or home mortgages, can help promote better scores.
But the biggest factor in your credit score is payment history. Keeping your payments on time is essential to avoid costly late fees and interest charges.
Auto Loans with a 704 Credit Score
Having a 704 credit score puts you in a good position when it comes to auto loans. You can often find low-interest loans with attractive terms when you have this score.
However, you should keep in mind that your credit score is only one factor lenders use to determine the interest rate on your loan. Other factors, such as the type of vehicle you are financing and your debt-to-income (DTI) ratio, also play a role.
The best way to get the lowest possible interest rate on your auto loan is to comparison shop. You can do this by checking with a lender of your choice, a car dealership or a loan marketplace like myAutoloan.
Personal Loan Options with a 704 Credit Score
Personal loans are a good option for people with fair credit, as they typically have lower interest rates than other types of personal debt. They also have fixed interest rates, so your monthly payments don’t change over the life of the loan.
Many lenders also offer a variety of features to make it easier for you to manage your loan online. For example, some personal loan companies will let you pre-qualify for a loan before you apply so you can see your rate and available options before applying.
You can also add a co-signer or co-applicant to your personal loan, which can help you qualify for a better rate. You can also choose a longer repayment term to reduce your monthly payments, but this may increase the total amount you’ll pay in interest over the life of the loan.
Mortgages with a 704 Credit Score
If you have a 704 credit score, you may be eligible for a variety of mortgages. These include fixed-rate mortgages, adjustable-rate mortgages (ARMs), and home equity loans.
Mortgage interest rates vary based on your credit score, so it’s important to shop around and get the best rate. A lower rate can mean big savings over time, especially if you can refinance into a lower rate once your credit score improves.
The primary factors that your credit score looks at are your payment history, the types of credit you have, and the amount of debt you owe. Your credit mix, which includes revolving accounts like credit cards and installment loans like car payments and home mortgages, also plays a role in your credit score.