My Credit Score Is 700. Do I Need to Boost It?

A credit score of 700 is by no means terrible. But you may want to work on raising it.

Your credit score tells lenders how risky a borrower you are. The higher your score, the less risk a given lender takes on. That's why it's important to get your credit score as high as possible.

A FICO credit score of 850 is considered perfect, and to be clear, most consumers do not have perfect credit. And you actually don't even need to aim for perfect credit, since it's extremely hard to attain. But if your credit score is currently sitting at a 700, it could pay to work on boosting it, even though it's a good score to begin with.

What can a higher credit score do for you?

Equifax, one of the major credit bureaus, says a credit score of 700 is considered good. By contrast, a score of 740 to 799 is considered very good, while a score of 800 and up is considered excellent.

Now these might seem like arbitrary designations, but what they're really telling you is that while a credit score of 700 is by no means bad, it's also not outstanding. If your goal is to set yourself up to be able to borrow at the most affordable rates, it pays to work on bringing that score of 700 up.

Similarly, while it's certainly possible to get approved for a credit card with a score of 700, some of the best credit card offers require a higher score. And if you want to qualify for them, you'll need to raise that 700.

How to boost your credit score

Boosting your credit score isn't something you should expect to happen overnight. But in time, you may be able to raise that number quite nicely.

There are different ways you can raise your credit score, but a good place to start is paying all of your bills on time. Your payment history carries more weight when calculating your credit score than any other factor.

You can also raise your score by paying off some existing credit card debt. Credit utilization is another big factor that determines your score, and it speaks to how much of your total revolving credit you're using at once.

If paying off a chunk of credit card debt isn't possible, you can lower your utilization (which will help your score) by asking for an increase in your credit card limits. Your credit card issuers may oblige if you've been an account holder in good standing for a while or if you can show proof of a higher income than you had when you first applied for your cards.

Finally, it always pays to check your credit report for errors. You're entitled to a free copy from each major reporting bureau (Experian, Equifax, and TransUnion) once a year. Right now, credit reports are free on a weekly basis through April. If you spot a mistake on your credit report that could be bringing your score down, like a debt in your name you never took on, getting it corrected could give your score a relatively quick boost.

While there's no need to beat yourself up over a credit score of 700, it could also work to your benefit to bring that number up. The good news is that you'll be starting out with a good score to begin with, so ideally, you can work on raising your credit without too much stress.