Having a 700 credit score puts you in a good position to secure a credit card with favorable terms. While it's not considered "excellent" credit (generally 800+), it's well above average, opening doors to a wider range of cards than someone with a lower score. This guide will help you navigate your options and find the best credit card for your needs.
What Credit Cards Can I Get with a 700 Credit Score?
With a 700 credit score, you're likely eligible for a variety of credit cards, including those offering rewards, low interest rates, or a combination of both. You'll have access to cards with better interest rates and lower fees compared to those available to individuals with lower credit scores. Many mainstream issuers will consider your application, and you might even qualify for cards with premium benefits.
What are the Best Credit Cards for a 700 Credit Score?
The "best" credit card depends entirely on your spending habits and financial goals. Consider these popular card categories:
Cash Back Credit Cards:
These cards reward you with a percentage of your spending back in cash. Look for cards offering different reward rates on various spending categories (e.g., higher cashback on groceries or gas). Some popular cash-back cards cater to a wide range of credit scores, making them excellent options for individuals with a 700 credit score.
Travel Rewards Credit Cards:
If you travel frequently, a travel rewards card can offer significant value. These cards accumulate points or miles that can be redeemed for flights, hotels, or other travel expenses. Many premium travel cards require excellent credit, but some cards with good rewards programs are accessible with a 700 credit score.
Balance Transfer Credit Cards:
If you have high-interest debt on other credit cards, a balance transfer card can help you save money. These cards offer a 0% APR introductory period, allowing you to pay down your debt without accruing interest. Remember, this introductory period is temporary, and you should aim to pay off the balance before the promotional rate expires. A 700 credit score significantly improves your chances of approval for these types of cards.
How Can I Improve My Chances of Approval?
Even with a 700 credit score, certain factors can influence your approval chances. To maximize your chances:
- Check your credit report: Review your credit report for any errors that could lower your score. You're entitled to a free credit report annually from each of the three major credit bureaus (Equifax, Experian, and TransUnion).
- Keep your credit utilization low: A low credit utilization ratio (the amount of credit you use compared to your available credit) is a positive factor in credit scoring. Aim to keep your credit utilization below 30%.
- Maintain a consistent payment history: Consistent on-time payments demonstrate responsible credit management, significantly impacting your credit score.
- Apply for only a few cards: Applying for multiple credit cards in a short period can negatively impact your credit score.
What are the Common Reasons for Credit Card Denial?
Even with a 700 credit score, a credit card application can still be denied. Common reasons include:
- High debt-to-income ratio: Your debt compared to your income can be a significant factor.
- Recent credit applications: Multiple recent applications can suggest a higher risk to lenders.
- Inconsistent employment history: A stable employment history shows financial stability to lenders.
- Errors on your credit report: Inaccuracies on your credit report can negatively impact your chances.
What if I'm Denied a Credit Card?
If your application is denied, don't be discouraged. Understand the reason for the denial and address any underlying issues. You can contact the credit card issuer to understand why your application was denied and inquire about alternative options. You might consider applying for a secured credit card—one that requires a security deposit—to rebuild your credit.
By understanding your options, improving your application profile, and carefully considering your spending habits, you can successfully secure a credit card that meets your financial needs with your 700 credit score. Remember to always compare offers and choose a card that aligns with your financial goals and responsible credit management.
