700 Credit Score: Congratulations, You’re Almost Average

Every now and then, I’ll take a look at a particular credit score to determine whether it’s good, bad, average, ugly, or somewhere in between.

Today we’ll look at a “700 credit score.”

At first glance, a 700 credit score seems pretty good, but not great. Most would probably characterize it as average, and I suppose I would do the same, if the three-digit number was all I had to go on.

Remember, you must always apply the proper credit score scale associated with the credit score to accurately determine where a specific score stands.

700 Fico Score Almost Average

For Fico scores, which range from 300-850, a 700 credit score is up there, but still 150 points shy of the highest credit score.

Roughly 18% of American consumers have a Fico score somewhere between 700 and 749, making it the second most common distribution after the 750-799 range, which holds a 27% share.

And we know the average Fico score was 711 back in October 2009 (last date recorded), so it’s clearly just an average credit score.

If you’ve got a 700 Fico score, there’s a good chance you’ve got minor stuff holding you back, such as high balances on existing credit lines or a limited credit history.

For good measure, you may want to get a hold of a credit report to determine if there’s anything more serious keeping you down. It’s certainly not the end of the world, but you can do better.

And there are better deals (lower interest rates) out there for consumers with 720 credit scores, 740 credit scores, and so on. In other words, a 700 Fico score could be costing you money, so why not try to improve it.

700 VantageScore is a “C” Letter Grade

Over at VantageScore, they have a credit scoring range of 501-990, along with credit grade buckets from A-F that rate your creditworthiness.

Unsurprisingly, the “C” bucket contains scores from 700-799, so again, it’d be an average credit score, if not slightly below average, given it being on the threshold of the “C” and “D” buckets.

The average VantageScore is actually around 750, so again you’d be missing the mark to some degree.

So if you’ve got a 700 credit score, you’ve got work to do! You’re by no means a bad borrower, and you don’t have a bad credit score, but you could definitely see some improvement.

Most likely this means cleaning up your credit history by paying down existing debts and applying for credit on a less frequent basis.

You probably don’t have any glaring problems, though you may have past derogatory accounts that are still weighing down your credit score.

But over time, the effects of these should diminish as you continue to add positive data to your credit report.

Either way, it could serve you well to take a gander at your credit report to check for any overlooked missed payments or errors, especially pesky medical collections, that seem to turn up left and right.

Also be sure to take a look at my thoughts on a 500 credit score, 600 credit score and an 800 credit score.

(photo: Sgobbone)