Congratulations! A 705 credit score is good. You can buy most things with a 705-plus credit score, as long as it fits within your overall financial planning and you can pay off the loan on time. While a 705 leaves room for improvement to get the lowest interest rates and best financial products, it shows that you use credit responsibly and are well on your way. Below you’ll find what you can do with a 705 credit score and steps to raise it higher.
Is a 705 credit score good?
Yes, according to all three credit bureaus, a credit score of 705 is in the good range. It demonstrates to lenders that you are not high risk and have demonstrated your ability to repay loans or lines of credit. A credit score of 705 won’t limit your opportunities for credit cards, auto loans or mortgages. However, you might have difficulty qualifying for business loans.
With a 705 credit score, you still have the opportunity to raise it higher. With the tips below, including automated payments and rent reporting, you could boost your credit score in a few months.
What a 705 credit score will get you
According to all three credit bureau rating systems, a 705 FICO score is in the “good” range. A 705 credit score is usually good enough for people to qualify for lower interest rates on loans, home mortgages, and car loans. However, you may not qualify for the lowest interest rates and could still have some difficulty getting approved for commercial or business financing.
Credit card with perks
A 705 credit score is good enough to qualify for most credit cards. Some lenders may consider income, payment history and the number of other credit cards you’ve applied for when making approval decisions. With a 705 score, you may get a higher interest rate, but as long as you pay off the card in full, that won’t matter.
A credit score of 705 is in the “good” score range, so you can expect to get approved for most rewards cards. That’s great news because it means you qualify for all kinds of perks. Credit card companies offer signup bonuses, introductory zero annual fees, 0% financing, or zero foreign fees for those who have higher credit scores. A 705 credit score credit card can offer benefits like credit card points to get free flights, free hotel nights, or cashback rewards of $100 to $500 or more.
But just because you’re approved for a great credit card with perks doesn’t mean you can’t have fees applied to your account if you forget to make on-time payments. In addition to fees, you’ll have a high credit card interest rate adding significant costs. Pay the card on time, in full each month for credit card perks to be a reward!
Mortgage
A mortgage loan with a 705 credit score is certainly possible. A 705 credit score is high enough to qualify for most home mortgages. But having a good credit score isn’t the only factor used to approve you for a home loan. Most lenders will only approve you for a loan equal to one-third of your after-tax income. They’ll also consider your income, employment history, on-time payment history, the amount of debt you have, and other score details when deciding whether to approve you for a loan.
Better auto loan rate
Auto lenders typically offer better interest rates if you have a 740 or 799 credit score. However, a 705 credit score is considered enough to qualify for most lenders, so you can still expect to get a decent interest rate as long as the rest of your credit portfolio and income looks solid. If you can wait six months and work to raise your credit score, the interest savings on an auto loan can be worth it.
Reduced auto insurance rates in some states
Some insurance companies use your credit score to determine your rate or provide a discount. If you have a 705 credit score, you might be eligible to receive reduced auto insurance through these programs.This is not a guarantee in all states, so it’s essential to check whether your local lenders offer any discounts for 705 credit score holders.
Personal loan
Most 705 credit score holders can qualify for a personal loan, but it’s likely your interest rates will still be sky-high. While 705 is a decent score, you’ll need excellent credit scores to receive the best interest rates on a personal loan. A credit-builder loan can help you build a very good credit history faster.
Rent a home or apartment
Your 705 credit score will help you qualify for a rental home or apartment. Some landlords require a credit score of 740 or higher, but most will be happy with 700-plus. The landlord will still usually require references to ensure you’re a solid candidate. And in most cases, you’ll need to put down the first and last month’s rent as well as a security deposit before moving in. That is normal procedure regardless of credit score.
Lease a car
Your credit score is one of several factors that car companies will look at before approving you for a lease agreement. A 705 credit score is respectable enough to get approved, and if your job and income check out, you’ll likely be able to get a decent deal on your next new ride.
8 tips to raise your 705 credit score
Is a credit score of 705 good? Yes! Could you raise it to a credit score of 711 or even 770? Also yes. While 705 is considered a good credit score, raising it could ensure that you’re receiving the best possible rates on any financial products you use. Here are a few ways to increase your 705 credit score in both the short and long term:
1. On-time payments
Always try to ensure that you’re paying all of your bills on time. The single most effective way to raise your 705 credit score is to make on-time payments. Late payments and missed payments will lower your credit score. Paying on time will also ensure you avoid fees and penalties for late or missed payments.
To never miss a payment again, set up automatic payments for the minimum payment due on all your credit cards. Then, try to pay all credit cards in full each month! If you need help with payments, call up the company directly to set up a way to pay.
2. Monitor credit score regularly
Consistently monitoring your credit score is an easy way to see how you’re doing and identify ways in which you can improve your credit. The government gives you the right to free credit reports.
You can access free credit reports from all three credit bureaus at annualcreditreport.com. Be sure to check for any inaccuracies and correct them or file a complaint to protect your credit score and identity.
3. Keep old accounts open
Did you know that closing your old accounts could make your credit score drop by a significant number of points? Make sure to keep your accounts open to avoid a plummeting credit score, especially your oldest credit account.
4. Report rent and utility payments
If you’re a renter or someone who pays their bills via check, make sure you report all your rent and utility payments to the credit bureaus. These types of payments can add up quickly and help raise your score. A rent reporting company can report up to two years of past on-time monthly rent and utility payments.
5. Request credit limit increase
An easy way to increase your credit score is to ensure that you regularly request credit limit increases. To do this, call your credit card company to see whether they can offer any credit limit increases. Some credit cards, like those from Bank of America, allow you to request a credit increase online. You can do this as often as you want until they offer a limit increase.
6. Pay off credit cards
Paying off existing debt is an important step to improving your credit score. You can use any strategy that works for you, but the goal is to reduce total debt as much as possible.
If you have several credit cards with high limits, the next step is to pay down your maxed-out credit cards so that you can lower your overall credit utilization. This will ensure that your credit score stays in good standing.
7. Avoid hard pulls
One of the best ways to raise your credit score is to avoid hard pulls on your credit reports. A hard pull, otherwise known as a hard inquiry or hard check, occurs when a creditor attempts to look at your complete file or any part of it from one or more of the three major credit bureaus.
This happens when you apply for a loan or a new credit card. Some loans or credit cards advertise that they don’t do a hard pull, otherwise assume every new application for a financial product includes a hard pull.
How soon you can see a 740+ credit score
First, congrats on already having a good credit score. A 705 shows you’ve established some great credit management habits. By systematically applying the tips above, you should be able to achieve a credit score of 740 or higher.
Whether that takes months or years will depend on how quickly you can pay off total credit card debt, how long you’ve been making on-time payments, and whether you were able to get credit for rent and utility payments.
If you want to boost your credit score even faster, consider asking a friend or family member to add you as an authorized user on one of their credit lines. Onward and upward for even lower interest rates and better financial opportunities.
FAQ
What is the average credit score?
The average credit score is 711. For 20-year-olds, the average credit score rate is even lower! Thankfully, by your early 30s, the average credit score tends to increase.
Can a credit score of 705 get you a house?
You should be able to qualify for a mortgage with a credit score of 705, assuming you meet the other criteria. Lenders will also look at income, employment history, and on-time payment history and may weigh other factors. Talk to mortgage lenders to see whether you can get pre-qualified to buy a home.
What is the maximum credit score?
Credit scores range from 300 to 850, so 850 is the maximum credit score. Generally, a credit score of 800 to 850 is considered exceptional.
What interest rate can I get with a 705 credit score?
The interest rate you can get will depend on the type of loan and other qualifying factors. For an auto loan, you may qualify for an interest rate of 4.9% on a new car or 5.47% on a used car.
Disclosures
MoneyLion Pay Later loans issued by WebBank. A soft credit pull will be conducted which has no impact on your credit score. MoneyLion Pay Later loans have an annual percentage rate (APR) ranging from 19.99% – 35.99%. Terms and conditions apply.
