Your score falls within the range of scores, from 670 to 739, which are considered Good. The average U. S. FICO® Score, 714, falls within the Good range. Consumers with good credit scores are seen by lenders as “acceptable” borrowers, and they may be offered a range of credit products, though perhaps not at the lowest possible interest rates.
Approximately 9% of consumers with Good FICO® Scores are likely to become seriously delinquent in the future.
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Staying the course with your Good credit history
Having a Good FICO® Score makes you pretty typical among American consumers. That’s not necessarily a bad thing, but you can raise your score to the Exceptional (800–850) or Very Good (740–799) range with a little more time and effort. Understanding the actions that raise your score and those that lower it will be necessary to move in that direction:
Late and missed payments are among the most significant influences on your credit score—and they arent good influences. Lenders prefer borrowers who make their payments on schedule, and statisticians estimate that late payers are more likely to default on their debt (i.e., let it go 90 days overdue) than on-time payers. If you’ve previously missed or made late payments, breaking the habit will have a positive impact on your credit score. The percentage of your score that is affected by late or missed payments is greater than one-third (35%) of your total score.
Technically speaking, utilization rate, also known as usage rate, indicates how near you are to “maxing out” your credit card accounts. By dividing each outstanding balance by the card’s spending limit and multiplying the result by 100, you can calculate utilization on an account-by-account basis. By totaling all of the balances and dividing by the total of all spending limits, you can find your overall utilization rate:
| Balance | Spending limit | Utilization rate (%) | |
|---|---|---|---|
| MasterCard | $1,200 | $4,000 | 30% |
| VISA | $1,000 | $6,000 | 17% |
| American Express | $3,000 | $10,000 | 30% |
| Total | $5,200 | $20,000 | 26% |
The majority of experts concur that higher utilization rates on individual accounts and higher overall account utilization percentages in percentage E2%80%94 will result in lower credit scores. The closer you are to 20%E2%80%9Cmaxing%20out%E2%80%9D%20any%20cards%E2%80%94that is, the more you damage your credit score by shifting their utilization rates toward 10% of 20100%%E2%80%94. In terms of its impact on your credit score, utilization comes in second only to timely payments; it accounts for nearly one-third (30%) of your credit score.
Its old but its good. With all other things being equal, your credit score will probably be higher the longer your credit history is. If your recent credit history is marred by late payments or high utilization, that doesn’t help much, and if you’re a new borrower, there isn’t much you can do about it. However, if you carefully monitor your credit and make your payments on time, your credit score will eventually rise. Age of credit history is responsible for as much as 15% of your credit score.
New credit activity typically has a short-term negative effect on your credit score. Credit-scoring systems assess your risk of not being able to repay debts whenever you apply for new credit or take on more debt. When that occurs, credit scores usually slightly decline but then rise again in a few months as long as you pay your bills on time. This is why it’s a good idea to “rest” for about six months between applying for new credit, and to avoid opening new accounts in the months leading up to your intended application for a large loan, like a mortgage or auto loan. New-credit activity can contribute up to 10% of your overall credit score.
A variety of credit accounts promotes credit-score improvements. Many credit accounts, both revolving (accounts like credit cards that allow you to borrow against a spending limit and make payments of varying amounts each month) and installment (loans that are paid back over time) are generally favored by the FICO® credit scoring system. g. , car loans, mortgages and student loans, with set monthly payments and fixed payback periods). Credit mix accounts for about 10% of your credit score.
Bankruptcies and other public records are not included in every credit report, so it is impossible to compare their entries to other score influences in percentage terms. One or more of these can significantly reduce your credit score if they are shown on your credit report, taking precedence over all other factors. For instance, a bankruptcy may appear on your credit report for ten years and prevent you from obtaining credit of any kind for the majority of that period.
How to improve your 700 Credit Score
Access to a wide range of credit card and loan products is possible with a FICO® Score of 700, but raising your score can improve your chances of being approved for even more loans with more favorable terms.
You should also take extra care to manage your score to avoid falling into the more restrictive Fair credit score range (580 to 669), as a 700 FICO® Score is on the lower end of the Good range.
The best way to determine how to improve your credit score is to check your FICO® Score. You’ll get information about how to raise your score based on particular details in your credit file, along with your score. Youll find some good general score-improvement tips here.
Can a 21 year old have a 700 credit score?
FAQ
Is 700 credit score good for 21?
What’s a good credit score for a 21 year old?
Is 715 a good credit score for a 21 year old?
Is 720 a good credit score at 21?
Is 700 a good credit score to buy a house?
The average interest rate on a new car was 4.03% and the average rate for a used car was 5.53% for buyers in the 661-780 range. A 700 credit score is also good enough to buy a house. You can even find lenders that will consider you for higher-value homes requiring “jumbo” mortgages.
What is a good credit score for a 20 year old?
First, the length of credit history plays a role in assessing a credit score. Second, the average credit score for your age group can give you a benchmark to work with. For those in their 20s, the average credit score is 662. When you’re first starting out and trying to build credit, it may take some time to gain traction.
Is a 700 credit score a good credit score?
A 700 credit score is considered a good credit score by many lenders. “Good” score range identified based on 2023 Credit Karma data. A credit score is a number that lenders use to help assess how risky you might be as a borrower. Credit scores are based on credit reports, which contain information about your credit history.
What is the average credit score for a 25 year old?
For example, the average score for a 25-year-old is 680 and 669, respectively — an 11 point difference. What is the average credit score overall? The average FICO 8 credit score is 717, as of October 2023 The average VantageScore 3.0 score is 700, as of October 2023.