At some point in your life, there’s a good chance your credit will become important, whether it’s when you’re buying a house, financing a car, or applying for a credit card. The higher your credit score is, typically the easier it will be to qualify for large amounts of credit debt and low-interest rates on personal loans and retail mortgages.
But, what happens if you have a credit score of 700? Is it still possible to borrow credit from lenders in your region?
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Are 700 Credit Scores Bad?
Your credit scores are calculated based on the information in your credit reports. Depending on the lender, credit bureau, or credit score provider, the score you see can vary as there are several different methods of calculating a credit score.
Your credit scores can also vary based on the information reported to the credit bureaus. Not all lenders and creditors report to both bureaus, this discrepancy in information can affect the way your credit scores are calculated. As such, Canadian consumers actually have more than one credit score, all of which range from 300 to 900.
Will You Get Approved For A Loan With A Credit Score Of 700?
It’s important to note here that if you checked your credit and see that you have a score of 700, that does not mean a potential lender will see the same number when they pull your credit. As mentioned above, credit scores can be calculated in many ways.
That being said, there is no “magic number” when it comes to getting approved for new credit. Higher credit scores mean you pose less risk to the lender.
In general, 700 is considered a good credit score so getting approved for a loan shouldn’t be a problem. But keep in mind that lenders take into consideration a variety of factors, not just your credit scores.
Average Credit Scores By Age In Canada
Canadian credit scores can go up and down due to several factors, such as a credit user’s payment history and credit utilization ratio. Curious to know where you rank compared to the rest of Canada? Check out the average credit scores by age in Canada:
| Age | Average Credit Score |
| 18 – 25 | 692 |
| 26 – 35 | ~697 |
| 36 – 45 | ~710 |
| 46 – 55 | ~718 |
| 56 – 65 | ~737 |
| 65+ | ~750 |
Source: Equifax Canada consumer credit database
As you can see, credit scores tend to rise with age, most likely because younger people often have shorter credit histories and are more prone to debt problems. Plus, by age 18 – 25, many users are only applying for their first credit cards and have thin credit profiles.
Most Canadians also start borrowing larger credit products, like mortgages, once they reach their thirties and have likely managed to pay off their biggest debts by the time they retire, both of which can affect the calculation of credit scores.
Credit Cards And 700 Credit Scores
If your credit scores all fall around the 700 mark and you’re interested in trying to improve them, you maybe want to consider taking out an additional form of credit like a credit card. Here are a few factors to consider first:
- Does the credit card come with benefits that fit your lifestyle?
- Will you be able to responsibly use a new credit card?
- Will you make the payments on time every month?
| Credit Card | Annual Fee | Interest Rate | Earned Rate |
| Best Western Mastercard® | $0.00 | 19.99% on Purchases | 22.99% interest on: – Balance Transfers – Access Cheques – Cash Advances |
| BMO Cashback Mastercard® | $0.00 | 19.99% on Purchases | 22.99% on cash advances (21.99% for Quebec residents) 1.99% on balance transfers for the first 9 months Plus a 1% transfer fee |
| BMO Preferred Rate Mastercard® | $20.00 (waived the first year) | 12.99% on Purchases & Cash Advances | 3.99% introductory rate on balance transfers for the first 9 months (12.99% after 9 months) |
| Home Trust Preferred Visa | $0.00 | 19.99% on: – Balance Transfers – Access Cheques – Cash Advances | 1 % base earned rate 1% unlimited cash back on eligible purchases |
| MBNA Rewards Platinum Plus Mastercard® | $0.00 | 19.99% on purchases | 24.99% interest on cash advances 22.99% on interest balance transfers |
| MBNA Smart Cash Platinum Plus Mastercard® | $0.00 | 19.99% on purchases | 24.99% interest on cash advances 22.99% interest on balance transfers |
Personal Loans And 700 Credit Scores
With a 700 credit score, you can qualify for most personal loans, depending on the other factors your lender considers during their approval process.
Typically, lenders want your credit scores to be at least 650 before they’ll approve you unless you’re applying with a company that specializes in clients with poor credit. This is particularly true with banks and credit unions, where approval standards are tougher.
If you need a personal loan but your credit scores are preventing you from qualifying with your financial institution, try applying with an alternative lender. Their requirements are often easier so getting approved may also be easier. However, it’s important to note that these lenders often charge higher rates as a result.
Car Loans And 700 Credit Scores
A car loan can also be relatively easy to get with a 700 credit score. In fact, some financing locations will approve you with lower credit scores and may focus their approval process on other criteria. When it comes to taking on a car loan, the most important thing to do is to not overextend yourself. We all want to drive a nice car, but it’s important to choose the one you can comfortably afford.
Learn how to budget for a car.
Mortgages And 700 Credit Scores
As mentioned, mortgages can be significantly harder to qualify for, especially if you don’t have stellar credit. Most traditional mortgage lenders want you to have credit scores of at least 680 before they’ll approve you for a decent loan and rate. To be eligible for the best mortgage conditions possible, a minimum credit score of 750 is ideal.
Don’t forget that your credit scores are only one piece of the puzzle when it comes to getting approved for a mortgage. You will need to pass the mortgage stress test, have an adequate down payment of at least 5%, and have a manageable debt-to-income ratio, just to name a few requirements.
How To Improve Your Credit Score From Fair To Excellent
If you’re interested in working on improving your credit scores, there are a few things you can try. It’s important to keep in mind that all credit scores react differently. This means that these tips may work well for one consumer but not another, or it may take more time for you to see improvements.
Paying Bills On Time
Your payment history makes up about 35% of your credit scores. If you consistently pay your debts as stated in your contract, you could see your credit score improve.
Lower Your Credit Utilization Ratio
By increasing your credit limit and spending less of your available credit, you may be able to lower your credit utilization ratio. Experts recommend a ratio of 30% or lower for the best results.
Monitor Your Credit Report & Scores
You can monitor your credit by checking your credit scores through the credit bureaus. You can get your credit report and Equifax credit score for free by creating an account online or by making a request by mail. Similarly, at TransUnion, you can get your consumer disclosure (a report that includes all your credit report information) online for free once a month. However, if you’re a Quebec resident, you can also get your credit score for free if you make a request by mail or in person.
Check For Errors On Your Credit Report
While the credit bureaus do everything they can to report your credit information correctly, mistakes happen. This is why it’s important to monitor your credit reports on a regular basis. Remember, only real errors can be removed from your credit report.
Watch Out For Fraud & Identity Theft
Having your identity stolen could potentially damage your credit if the suspect in question applies for and misuses credit cards or loans in your name.
Don’t Apply For Too Much Credit
Responsibly managing some debt, for example, a car loan, can help to improve your credit over time. Just make sure you take on debt that you can afford and manage. Too much debt, for example, a maxed-out credit card has the potential to hurt your credit.
Bottom Line
Checking your credit and seeing a score in the 700 is good news! It means you’ve managed your credit products responsibly. Getting approved for basic credit products and loans shouldn’t be too much of a struggle for most consumers whose scores fall in the 700s. Keep up the good work and you may even see your scores improve over time.
