Can you get good rate on a loan with a credit score of 700?

A good credit score is necessary to receive a loan with a low-interest rate. According to the consumer credit reporting agency Equifax, a score between 670 and 739 is considered “good.” A very good score reaches between 74 and 799, and exceptional credit is defined as a score above 800. “Higher credit scores mean you have demonstrated responsible credit behavior in the past, which may make potential lenders and creditors more confident when evaluating a request for credit,” reports Equifax.

In the United States, around eighty-three percent of adults have at least one credit card, and according to Business Insider, the average FICO credit score in the US is 718. This was the highest score recorded in history after pandemic relief helped many households pay down their debts, which could have contributed to a higher average.

What credit score are lenders looking for?

A score of 670 indicates trustworthiness for most lenders, with borrowers with scores below this level being classified as “subprime borrowers.” This phrase might ring a bell to some after the subprime mortgage crisis, which caused The Great Recession. Mortgages were given to people who many lenders knew would not be able to repay the loans and when the higher interest rates kicked in, banks who had backed the loans started to bleed money.

How do I find out my credit score?

Before providing information to a free credit checker online or paying for a full credit report, check with your credit card servicer to see if they offer a free credit check. Limiting the number of financial entities with access to your Social Security Number and other sensitive financial data can help to protect you from fraud and identity theft.

If a free credit report is not included as a perk of holding an account, you may need to look to other companies like Credit Karma and Experian. Other options include Equifax, which suffered a significant data breach in 2017 that affected more than 140 million people in the US.