 |
| 700 GOOD CREDIT SCORE |
700 credit score significance varies from situation to
situation. 700 credit score means that you have worked very hard in
maintaining a clean credit payment history,there have been no defaults in
making payments at your ends,you have handled your credit extremely well.Your
700 credit score is an indicator of your financial health.
700 credit score is the result of your:
ZERO OUTSTANDING DEBT BALANCES
YOUR low DEBT TO
CREDIT RATIO
NEW LINES OF CREDIT OPENED BY YOU
THE TYPES OF CREDIT USED BY YOU(CREDIT CARD,MORTGAGE
LOAN,CAR LOAN,STUDENT LOAN)
DURATION OF YOUR CREDIT HISTORY
However your 700 credit score does not give you any assurance
that you will be easily approved for any loan that you apply for.You can easily
get 700 credit score with one credit card.If your 700 credit score is the result
of using only one line of credit say a credit card ,it will not get you a car
loan.
If your credit score qualifies you for a loan and that too
at the best possible rates of interest,you can definitely say that your credit
score is a good one.To know that 700 credit score is good or bad depends a lot
on the risk category you would be allotted based on your score.If you are given a
high risk category with a high rate of interest,your credit score is bad OR
below average.As some financial institutions or lenders may consider 740-790 as the best credit score.
You will have to make an effort to maintain and take this
credit score further up to give you more benefits and perks.It would be very
easily to go down a 100 points by making one late payment.But taking it up by
another 50 or 100 points will not be that easily.You will have to look for
areas that need to be improved to increase your credit score like-maintaining
different mix of credit,keeping credit balance of your credit low,wisely manage
your debt etc.
700 credit score is on the verge of turning into a better
perfect score or one slip and it will be down near 600.Whatever action you will
take will directly affect your credit score and this score will keep on changing
from month to month.
To sum it up-A 700 good credit score is not a guarantee ticket of
your loan applications be automatically approved for you by the lenders at the
best possible rates.
No comments:
Post a Comment