By CreditNinja
Modified on May 15, 2024

A 705 credit score is “good.” Good FICO Scores range between 670 and 739 points.

A good credit score can make it easier for borrowers to get funding for unexpected emergencies that need quick solutions.

But keep in mind that continuing to improve your credit history can result in even better rewards, rates, and terms!

Key Takeaways for a 705 Credit Score

Overview of Your
Credit Rating

A 705 score is good, although it is lower than the national average credit score. But rest easy knowing you can improve it over time.

Borrowing Options With a
705 Credit Score

You may be eligible for almost any loan or credit card, although you will not get the best rates available.

Improving a 705
Credit/FICO Score

Consumers can maintain a good score by avoiding late or missed payments, as well as limiting their credit card debt and credit inquiries.

Is a 705 Credit Score Good?

A 705 score falls within the “good” credit category, which is a mid-tier range. This type of score is better than a “poor” or “fair” one, and is in a prime position to elevate to an “excellent” credit category. A good or excellent credit score can help you get approved for all types of financial products with decent rates.

What Can You Get Approved for With a 705 Credit Score?

Below are a few examples of loan options for people with a 705 score:

Personal Loans

You may be eligible for a personal loan if you have a good credit score. Many lenders offer online loans for your convenience, but it’s in your best interest to make comparisons to find the best offer. According to a 2023 Nerdwallet study, loan amounts generally range between $6,000 and $8,100.¹ You could get sufficient funds to tackle all types of unexpected expenses, such as medical bills and car repairs.  

Bank Loans

You may get pre-approved for most bank loans with a good credit score. However, some loan options may require you to meet specific criteria to qualify. For example, you will have to provide collateral to get a home equity line of credit

Credit Cards

If you have an average credit score, you can expect an easy approval process with most credit card issuers. Your credit limit will largely depend on your recurring income and personal debt. A rewards card grants points, cash back, or miles to cardholders, but they’re usually only available to consumers with good scores.

These are some of the best credit cards for good credit scores:

  • Capital One Venture Rewards Credit Card
  • Bank of America® Travel Rewards Credit Card
  • Discover it® Cash Back
  • Bank of America® Unlimited Cash Rewards Credit Card
  • Blue Cash Preferred® Card from American Express
  • Southwest Rapid Rewards® Priority Credit Card

Auto Loans

You may be eligible for decent rates on auto loans with a 705 score. Keep in mind that your income will affect the loan amount you are eligible to receive. If you do qualify for a large loan amount, remember that it’s not financially feasible to borrow more than you need.

Products To Help Maintain a 705 Credit Score

These are some products that can help you maintain your good score:

Becoming an Authorized User 

You can maintain your score by becoming an authorized user on an existing credit account that is in good standing. The primary borrower’s credit history affects the authorized users, so their responsible financial management can help you maintain or improve your FICO Score.  

Automatic Payments

Signing up for automatic payments allows the financial institution to automatically charge you for monthly payments. This payment feature allows you to avoid late payments that can affect your credit rating. 

Credit Report Monitoring 

The three major credit bureaus each provide one free annual credit report. Monitoring your credit reports at least once a year can help you maintain your credit score. Incorrect credit reports can decrease your credit. According to the Federal Trade Commission (FTC), one in five people have a credit error on their credit report.² If you notice inaccurate information on one of your credit reports, you can dispute it with the credit bureau to have it removed. 

Benefits of a 705 Credit Score

You can look forward to these benefits with a 705 score:

Easy Approval Process

Good credit scores can make the approval process easier and quicker. A good score may make you eligible for all types of installment loans and credit cards, so you don’t have to spend time applying with multiple lenders. 

Attractive Interest Rates

You can expect to get better interest rates than a borrower who has a “poor” or “fair” credit rating. A low rate can make debt repayment easier on your checking account. By continuing to improve your credit, you can get even better rates. 

More Housing Options

A 705 credit score can help you get approved for a rental unit. When you apply for an apartment, the landlord will look at your income and your creditworthiness. A good score indicates that you have a positive history of debt repayment and financial stability, which may 

How To Maintain Your 705 Credit Score

You can maintain your current score by following these financial tips:

Avoid Late Payments

Your payment history counts for 35% of your total FICO Score, so it’s critical to avoid late payments. A monthly payment that’s more than 30 days late can show up on your credit report and continue affecting your credit for up to seven years! However, you can maintain a good payment history by using autopay, budgeting apps, or signing up for payment alerts. 

Keep Debt Low

A high credit utilization ratio can hurt your chances of getting an average credit score. Credit utilization is a percentage that represents the amount of revolving credit you are using compared to your total credit limits. Using too much credit can hurt your credit score, so try to keep your credit card debt low. 

Here’s a step-by-step guide on how to calculate your credit utilization rate:

Step

Action

Description

1

Gather Your Credit Card Balances

Collect the current balances of all your credit cards. This information can usually be found on your most recent statements or online banking portals.

2

Gather Your Credit Card Limits

Find out the limit for each of your credit cards. This information is also available on your credit card statements or online banking accounts.

3

Calculate Individual Card Utilization

For each credit card, divide the current balance by the limit. Then, multiply by 100 to get the utilization rate as a percentage.

4

Calculate Overall Utilization

Add up all the balances across your cards to get a total balance. Do the same for the credit limits to get a total credit limit.

5

Final Calculation

Divide the total balance by the total credit limit. Multiply by 100 to convert the result into a percentage. This is your overall credit utilization rate.

Limit Your Credit Inquiries 

A hard credit check can decrease your score by as much as ten points! If you want to maintain or improve your current credit score, it’s essential to limit your credit inquiries. Financial experts typically advise consumers to avoid making more than six credit inquiries within a two-year period. 

FAQs About 705 Credit Scores

A 705 credit score is considered ‘good’ and is slightly above the national average credit score. This means you’re doing better than many borrowers out there, but there’s still room to grow into the ‘very good’ and ‘excellent’ credit score ranges.

Absolutely, and it’s quite normal! Your credit score can fluctuate due to the credit bureaus updating your credit history, small changes in your debt levels, or even due to the activities of your creditors. It’s like a financial snapshot that changes slightly each time it’s taken. So, a few points up or down from 705 isn’t unusual and doesn’t necessarily mean you’ve done something wrong.

Even with a good credit score like 705, it’s smart to regularly check your credit report from the three major credit bureaus. This way, you can ensure all the information is accurate and up-to-date. Mistakes happen, and you don’t want errors dragging down your score.

Credit scores are dynamic, meaning they can change as new information hits your credit report. Most creditors report to the credit bureaus monthly, so your score could potentially change once a month.

Aiming for the higher end of the ‘very good’ range (740-799) can unlock even better loan terms and interest rates. It’s not about hitting a magic number but rather about continuously improving your credit health. Small, consistent actions can gradually lift your score, potentially saving you money on future loans.

What Interest Rate Can I Get With a 705 Credit Score?

Borrowers with good credit scores can expect to get decent rates on financial products. But remember that obtaining an average credit score, or an even higher score, can result in better rates. Lenders usually reserve their lowest interest rates for borrowers who have excellent or perfect credit scores. If you do not need emergency funding, it’s better to focus on improving your various credit scores before applying for a new loan or line of credit

Can I Buy a House With a 705 Credit Score?

Potential homebuyers with good credit scores can look forward to qualifying for conventional loans. Conventional loans offer more lending options and competitive rates. 

When you are shopping around for a home, try to avoid buying more house than you need. A high purchase price will result in higher monthly payments and interest rates that may be challenging to repay if unexpected expenses come up. Falling behind on mortgage payments can result in default and foreclosure, which can severely impact your credit score. 

Top 5 Resources for a 705 Credit Score

Related Credit Scores

690  695  699  700  702  708  710  712  714  718

References:

    1. Personal Loan Rates and Debt Statistics in 2023│Nerdwallet
    2. How Common are Credit Report Errors│McCarthy Law