My Credit Score Is 700. Will I Get a Good Rate on a Loan?

You'll often hear that it's a good idea to check your credit score before applying for a loan. That way, if you see that the number isn't so great, you can take steps to raise it.

The higher your credit score, the more likely you are to snag a lower interest rate on the sum you borrow. And the lower your interest rate is, the less your monthly payments amount to.

If your credit score is 700, you may be wondering if that's solid enough to help you snag a great rate on a loan. And the answer is, it really depends on your lender.

But generally speaking, while a 700 is a good credit score, it's far from excellent. So raising your score might result in a much more affordable loan.

How a credit score of 700 stacks up

FICO® Scores, the most commonly used credit scores, range from 300 to 850. Experian, one of the three major credit bureaus, says a score of 700 is considered good. For context, here are the ranges it uses to classify credit scores:

• 300 to 579: Poor
• 580 to 669: Fair
• 670 to 739: Good
• 750 to 799: Very good
• 800 to 850: Exceptional

With a credit score of 700, you're closer to the high end of the credit score spectrum than the low end. But based on the above ratings, you're really in a middle-of-the-pack sort of situation.

While a credit score of 700 might make it possible for you to qualify for a loan and perhaps snag a decent interest rate on it, you may not get the best rate. For that, you may need a score that falls into the very good or exceptional range.

How to boost your credit score

While a credit score of 700 is certainly nothing to hang your head in shame over, it wouldn't hurt to try to boost it to open the door to better borrowing rates. And there are different steps you can take to boost your credit score.

First, work on paying bills on time. The most important factor that goes into calculating your credit score is your payment history. If you're timely with bills, it could give your score a nice lift.

Next, work on paying down existing credit card debt. The lower your total balance relative to your total spending limit, the more your score can improve. And if you can't pay down debt, you could achieve a similar result by getting a credit limit increase on your cards. However, this strategy will really only work if you then don't add to your balance.

Finally, make a point to check your credit report for errors at least once every few months. You can request a free copy from all three bureaus to make sure there are no mistakes that could drag your score down, like a delinquent debt that's actually current.

A higher credit score could help you save money the next time you seek to sign a loan. So while a score of 700 is certainly decent, bringing that number up could do your finances a world of good.