Is 700 a Good Credit Score?

A 700 credit score is considered fair in Canada. With a fair credit score, you'll qualify for financial products from many prominent Canadian lenders, but you might not get the lowest rates available. Premium credit cards, such as rewards and cashback cards, may be out of your reach.

Credit scores in Canada range between 300 and 900; the higher your credit score, the more likely that lenders will offer you their products. There are five distinct categories that credit scores fall into, ranging from poor to excellent. 

• Excellent: 741-900

• Good: 713-740

• Fair: 660-712

• Below Average: 575-659

• Poor: 300-574

If you have a fair credit score, you are an average-risk borrower. You’re not a high-risk borrower, but you’re not the most attractive applicant. Lenders aren’t falling over themselves to lend you their best products. Improving your credit score can help you qualify for the best interest rates and credit cards available. You can use Borrowell to check your credit score for free and receive personalized tips on how to improve your credit score from fair to excellent.

If your credit score is below 700, you should take time to improve your credit score. Having a credit score of 700 or above can help you qualify for financial products at affordable rates. With the right products, you’ll be able to achieve your financial goals and reach major milestones, like buying a car or a house. Here’s more information on what you can qualify for with a 700 credit score, along with tips on how to improve your score from fair to excellent.

What Can You Qualify for With a Credit Score of 700?

With a 700 credit score, you’ll have good chances to qualify for most financial products from Canada’s biggest lenders. Well-known providers will be open to working with you based on your credit score and credit history. That said, a fair credit score could prevent you from qualifying for premium rewards credit cards or low-interest personal loans.

The best way to find out what specific products you qualify for is by using Borrowell. You can sign up for free to check your credit score, compare products, and instantly see your approval chances for loans, credit cards, mortgages, and more. Checking your credit score with Borrowell is a soft credit inquiry, so it won’t hurt your score! 

Here are some questions you might have about what general products you qualify for with a 700 credit score.

Can You Qualify for a Personal Loan?

Yes, you can qualify for most personal loans with a 700 credit score. That said, you might not qualify for the lowest interest rates available. Borrowers with higher credit scores can receive larger amounts of money, low-interest rates, and other potential perks when taking out a personal loan. With a 700 credit score, your loan options may be more limited with rigid interest rates and terms.

Most lenders require that you have at least a credit score above 650 to qualify for a personal loan. If your credit score is lower, you can still qualify for some bad credit loans, but these loans typically have much higher interest rates

Can You Qualify for a Credit Card?

Yes, you can qualify for most standard credit cards with a 700 credit score. You might not qualify for top-tier cards with high credit limits and bonus rewards.

Most credit card providers in Canada require credit scores of at least 660 to qualify. Credit card interest rates are usually set in stone by lenders, so you won’t necessarily get a better interest rate with a higher credit score. That said, you’ll qualify for higher credit limits and other potential perks, including rewards and cashback bonuses. 

Individuals with higher credit scores have a larger selection of premium credit cards to choose from. With a 700 credit score, your credit card options will be more limited. Some travel cards, rewards cards, and cashback cards may be just out of your reach for the time being. Improving your credit score from fair to excellent can help you qualify for the best credit cards.

Can You Qualify for a Car Loan?

Yes, you can qualify for a car loan with a 700 credit score. You’ll have good approval chances and be eligible for many car loan offers available with a fair credit score. You might not qualify for lower interest rates than consumers with excellent credit.

Canadian lenders typically approve car loans for consumers with credit scores of 630 or above. If you have a credit score below 630, you’ll need to find a lender that specializes in helping car buyers with bad credit.

Can You Qualify for a Mortgage?

Yes, you can qualify for a mortgage with a credit score of 700, but you might not qualify for all offers available. You need a minimum credit score of 680 or above to qualify for the best mortgage rates with traditional lenders. Having excellent credit of 750 or above will help you lock in an attractive interest rate and save money on your mortgage payments. 

The interest rate you receive on your mortgage matters; even a slightly lower interest rate can have a major impact on your finances. The interest rate you qualify for will determine how much money from your scheduled payments goes towards your principal and how much goes towards interest payments. 

If your credit score is below 680, you may still qualify for a mortgage, but you'll likely need to choose an alternative mortgage lender and pay a higher interest rate.

How Can You Improve Your Credit Score from Fair to Good?

If you have a 700 credit score, consider taking steps to boost your credit score. Improving your credit score from fair to good can help you qualify for the best financial products, interest rates, and terms available in Canada. 

There are tangible steps you can take to improve your credit score from fair to good. Here are some specific ways you can work towards a good credit score:

• Ensure you make payments on time

• Lower your credit utilization rate

• Check for errors on your credit report

Ensure you make payments on time

Your payment history is the largest factor that impacts your credit score, making up 35% of your score. Paying your bills on time is the most important thing you can do to improve your credit score.

To improve your 700 credit score, you should make consistent payments towards your credit cards, loans, and other bills and accounts. Building a good payment history can help you increase your credit score over time.  

To ensure that you pay all of your bills on time, every time, you can use Borrowell’s free bill tracking solution to monitor and predict your upcoming bills. If you happen to have any overdue bills or accounts, you should prioritize paying off the oldest ones first.

Lower your credit utilization rate

Your credit utilization is the amount of credit you've used out of the total amount of credit available to you. The lower your credit utilization, the more attractive you are to lenders. Credit utilization is the second largest factor that impacts your credit score, making up roughly 30% of your score.

The golden rule is that you should keep your credit utilization ratio under 30%. For example, if your total credit limit is $10,000, then you should keep your total balance across your credit accounts below $3,000. 

To improve your 700 credit score, you should look at your credit accounts and see how you can reduce some of your expenses. Reducing the number of purchases you make with credit can help you reduce your credit utilization ratio.

Check for errors on your credit report

Regularly monitoring your credit report can help you safeguard your financial health. By keeping regular tabs on your credit report, you can spot errors that could be bringing your credit score down. You can sign up for Borrowell to download and print your Equifax credit report for free. 

If you spot an error on your credit report, it’s important to dispute it as soon as possible. You can dispute your credit report by providing the appropriate documents to Canada’s credit bureaus through mail or online.

The Bottom Line

If you have a 700 credit score, you’re an average-risk borrower who has pretty good chances of being approved for many financial products. That said, a fair credit score could prevent you from qualifying for premium rewards credit cards or low-interest personal loans. In some instances, a fair credit could even prevent you from getting an affordable mortgage to buy your dream home. Improving your credit score is in your best interest, as a good to excellent credit score can help you more easily achieve your financial goals.