In a Nutshell: Higher credit scores can lead to better credit opportunities, such as approval for credit cards or favorable terms on loans. But knowing exactly what it means to have good credit is a challenge. More than 100 million members use Credit Karma to help them understand and work on their credit scores. Here’s what it means to have good credit and what you can do to maintain it. Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect.
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So you’ve checked your credit score and it’s sitting at 704. You’re probably wondering “Is that good or bad?” Well, buckle up, because we’re about to dive deep into the world of credit scores and give you the lowdown on what a 704 means for you.
Spoiler alert: It’s not bad, but it’s not amazing either. It’s right in the “good” credit score range, so while you’re doing alright, there’s always space for growth.
Let’s break it down:
- Credit Score Ranges:
- Poor: 300-579
- Fair: 580-669
- Good: 670-739 (This is where your 704 falls)
- Very Good: 740-799
- Exceptional: 800-850
What does a 704 credit score mean?
A 704 credit score means you’re considered a “good” borrower by lenders. This implies that while you’ll probably be able to get a credit card and most loans, you might not get the best terms or interest rates.
Here’s what you can expect with a 704 credit score:
- Loan approvals: You’ll likely be approved for most loans, including mortgages, auto loans, and personal loans.
- Interest rates: You’ll likely get interest rates that are higher than those offered to borrowers with excellent credit, but lower than those offered to borrowers with fair or poor credit.
- Credit card offers: You’ll likely be approved for most credit cards, but you might not get the best rewards or perks.
How to improve your 704 credit score:
- Pay your bills on time: This is the most important factor in your credit score. Even one late payment can have a negative impact.
- Keep your credit utilization low: This means using less than 30% of your available credit.
- Don’t apply for too much credit: Every time you apply for new credit, it can lower your score.
- Become an authorized user on a credit card with good credit: This can help you build your credit history without having to open a new account.
- Dispute any errors on your credit report: Mistakes happen, so it’s important to check your credit report regularly and dispute any errors you find.
Is a 704 credit score good enough to buy a house?
Yes, a 704 credit score is good enough to buy a house. However, you may not qualify for the best mortgage rates. To get the best rates, you’ll need a credit score of at least 740.
Is a 704 credit score good enough to get a car loan?
Yes, a 704 credit score is good enough to get a car loan. However, you may not qualify for the lowest interest rates. To get the best rates, you’ll need a credit score of at least 720.
The bottom line:
Although a 704 credit score is a decent place to start, there’s always space for growth. You can improve your credit score and be eligible for better terms and interest rates on loans and credit cards by implementing the advice provided above.
Bonus tip:
Check your credit score regularly. You can get your credit score for free from several websites, including Credit Karma and Experian. This will help you track your progress and make sure you’re on the right track to improving your credit score.
Remember:
Your credit score is a reflection of your financial health. By taking steps to improve your credit score, you’re not only improving your chances of getting approved for loans and credit cards, but you’re also making it easier to save money on interest payments.
Mortgage rates for good credit
Your credit scores are just one factor to consider when you’re looking to get a great mortgage rate. Having good credit can help you get a better rate, but so can factors such as ….
- The type of mortgage loan you’re looking for
- The total cost of your home
- Your debt-to-income ratio
- The size of your down payment
The average credit score it takes to buy a house can also vary greatly by location.
It’s a good idea to shop around once you have a general idea of your overall credit, as well as how much house you can afford and the kind of loan you want. This can give you a better idea of what different lenders could offer you.
Compare your current mortgage rates on Credit Karma to learn more.
A 704 credit score is considered a good credit score by many lenders.
| Generation | Percentage |
|---|---|
| Gen Z | 24.3% |
| Millennial | 16.1% |
| Gen X | 15.3% |
| Baby boomer | 15.8% |
| Silent | 12.8% |
“Good” score range identified based on 2023 Credit Karma data.
Lenders use your credit score to determine how risky you might be as a borrower. Credit scores are based on credit reports, which contain information about your credit history. Generally speaking, a high credit score indicates to lenders that you are more likely to repay loans.
Having good credit can be a game-changer. It can mean you’re more likely to be approved when you apply for a credit card or loan. Good credit can also help you qualify for lower interest rates and better loan terms.
It’s not quite as simple as that though. You don’t have just one credit score. Here’s why. Scores can be calculated using different scoring models, like the ones created by FICO and VantageScore. Your credit scores are produced by these credit-scoring models using a variety of factors and information from various sources, including the three major consumer credit bureaus (Equifax, Experian, and TransUnion). So there are actually many different versions of your credit scores.
With so many different credit scores out there, what counts as a “good” credit score can vary. It’s possible that different models or lenders have different definitions of what constitutes good.
What does this mean for consumers looking for a loan or credit card? Although having an approximate idea of how good your credit score is can be a useful gut check, having a high credit score does not ensure that you will be granted the loan or credit card that you want.
Here are some tips for establishing and preserving a good credit score, as well as how to eventually raise it from good to excellent if that’s your goal.
What your credit score actually means
FAQ
Can I buy a house with a 704 credit score?
Can I buy a car with a 704 credit score?
How many people have a 740 credit score?
Is it possible to have a credit score of 900?
Is a 704 credit score a good credit score?
A 704 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.
Can I get a personal loan with a 704 credit score?
Most lenders will approve you for a personal loan with a 704 credit score. However, your interest rate may be somewhat higher than someone who has “Very Good” or “Excellent” credit. It’s best to avoid payday loans and high-interest personal loans as they create long-term debt problems and just contribute to a further decline in credit score.
Will auto lenders lend to someone with a 704 credit score?
Most auto lenders will lend to someone with a 704 score. However, if you want to ensure you qualify for the best interest rates, you will want to continue improving your credit score. There are also several other factors that lenders consider when deciding whether to lend to you and at what interest rate.
What is a good credit score?
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. Lenders view consumers with scores in the good range as “acceptable” borrowers, and may offer them a variety of credit products, though not necessarily at the lowest-available interest rates.