A good rate for a personal loan with a 700 credit score would depend on the type of loan you’re applying for, as well as your specific financial situation. While you may be eligible for several different types of personal loans with a 700 credit score, the actual interest rate you’re offered will depend on more than just your score.
Having a credit score of 700 is a good achievement. This falls right into the “good” credit score range according to FICO. This stands for Fair, Isaac, and Company and it’s a data analytics company that tracks people’s borrowing habits and assigns them a three-digit number based on their “creditworthiness.”
Creditworthiness is a term used to describe how trustworthy you are when it comes to borrowing money. If you have a history of making on-time payments, you don’t misuse your credit cards, and your overall debt load is fairly low then you’re likely to be considered creditworthy. If you’ve defaulted on your loans in the past, have too many loans, and too much credit card or other debt, then you may not be considered creditworthy. This means you might have a hard time getting loans or good interest rates.
So who exactly is viewed as creditworthy, and who isn’t? This is a great question to ask if you’re in need of a personal loan. The FICO scoring model breaks down borrowers into the following categories based on their credit score:
As you can see based on these categories, your 700 credit score puts you in the “good” range. This is a great achievement, as it’s not always easy to build a good credit score. But what does this mean for the loans and interest rates you’ll be offered? Well, you will probably be eligible for a number of different credit and loan options, and you’ll get a decent interest rate.