Brad HansonA 705 credit score is considered a good credit score by many lenders.
Credit scores help lenders assess borrower risk and are based on credit reports, which detail your credit history. A good credit score indicates a higher probability of repaying what you borrow.
Good credit can make a big difference in your financial options. It can boost your chances of getting approved for credit cards or loans and help you get more favorable interest rates and terms.
We’ll explore how to build your credit and maintain a good credit score — and if you’re looking to improve, how to elevate your credit score from good to excellent.
- How to improve your 705 credit score
- Understanding the benefits of a good credit score
- Next steps: Learn more about your credit score
How to improve your 705 credit score
Although there’s no precise formula to achieve a specific score, you can aim for a general score range. Consistently following these principles over time can improve your scores, making you a better credit risk to lenders.
Several key factors affect your credit scores, though they don’t all carry the same weight.
Here’s an overview of what contributes to your FICO® Score 8, the most commonly used scoring model.
- Payment history (35%): This shows whether you pay your debts on time. Creditors prefer applicants who consistently make timely payments.
- Amounts owed (30%): This reflects how much debt you have compared to your available credit (known as your credit utilization rate). A good practice is to keep your credit usage at or below 30% of your total credit limits.
- Length of credit history (15%): This measures how long you’ve had open credit accounts. Generally, the older your accounts are, the better.
- Credit mix (10%): This includes the different types of credit you have, such as installment loans and credit cards. Creditors like to see that you can manage various types of credit effectively.
- New credit (10%): Applying for new credit can result in a hard inquiry, which can slightly lower your scores.
Percentage of generation with 700–749 credit scores
| Generation | Percentage |
|---|---|
| Gen Z | 24.3% |
| Millennial | 16.1% |
| Gen X | 15.3% |
| Baby boomer | 15.8% |
| Silent | 12.8% |
“Good” score range identified based on 2023 Credit Karma data.
Understanding the benefits of a good credit score
A good credit score can unlock more favorable lending options. While there are different credit scoring models, a score anywhere from the high 600s to the mid-700s is typically considered good on a scale from 300 to 850.
Generally speaking, the higher your credit scores, the greater your chances of securing loans with lower interest rates and reduced fees. This can lead to big savings over the life of a loan.
Hard inquiries by credit score range
| Credit score range | Average number of inquiries |
|---|---|
| 300–639 | 8 |
| 640–699 | 5 |
| 700–749 | 4 |
| 750–850 | 3 |
Ranges identified based on 2023 Credit Karma data.
What kind of credit card can I get with a 705 credit score?
Good credit scores can boost your chances of qualifying for valuable credit card rewards, such as cash back, travel perks or an introductory 0% APR offer that can help you save on interest for a period of time.
Even with good credit, some of the most exclusive credit cards might still be out of reach. But you’ll still likely have plenty of great options. When considering different types of credit cards, the best choice for you will depend on your spending habits and financial goals.
Here are some types of credit cards that might suit your needs:
- Cash back credit cards: If you appreciate the simplicity of earning rewards, a cash back credit card could be a great choice. As you spend, you’ll earn cash back that can be applied to your bill or transferred to a bank account. With some cash back cards, you get the same rate on everything you buy, but others boost your rewards in select bonus categories
- 0% intro APR cards: If you’re planning a large purchase or need to pay off debt, consider credit cards with a 0% intro APR offer. You’ll avoid interest charges on new purchases for a specified period, as long as you make at least the minimum payments due on your statement.
- Balance transfer credit cards: Balance transfer cards enable you to transfer debt from an existing card to one with a lower interest rate. With a well-structured repayment plan, these cards can effectively help manage your debt.
- Travel rewards credit cards: If you’re a frequent traveler, a travel rewards credit card might be the best option. Benefits can include access to airport lounges, free checked bags as well as travel protection and insurance.
What kind of personal loan can I get with a 705 credit score?
Although the minimum credit score required for approval varies by lender, a score in the good range is generally sufficient to qualify for a personal loan.
When you apply for a personal loan, lenders typically assess your credit history, income and current debt levels.
Here are some common uses of personal loans for borrowers with good credit:
- Debt consolidation loan: A debt consolidation loan lets you combine multiple balances into a single account. If you can consolidate your debt into one personal loan with a lower overall interest rate, it may help you save on interest charges and pay off your debt more quickly.
- Major purchase loan: If you have a large purchase to make and prefer not to use a credit card, taking out a personal loan might be a better option if you want to spread your payments over time.
- Home improvement loan: If you don’t want to (or can’t) use your home’s equity, you might consider a personal loan for home improvements.
Check out our recommendations for the best low-interest personal loans.
What kind of mortgage can I get with a 705 credit score?
A good credit score can make it easier to qualify to buy a house.
But lenders look at more than just your credit scores when approving a mortgage. They also consider factors like payment history, debt-to-income ratio, down payment and assets.
While there isn’t a universal credit score requirement for mortgages, different loan types have typical credit score requirements — and each lender can have its own criteria.
- Conventional loans: Issued by private mortgage lenders, these loans aren’t part of government programs. You may be able to get a conventional loan with credit scores above the mid-600s, but having scores in the mid-700s or higher increases your chances of securing a competitive interest rate.
- FHA loans: These mortgages are made by private lenders but insured by the Federal Housing Administration. You’ll need a minimum credit score of 580 for a 3.5% down payment and 500 for a 10% down payment.
- VA loans: Backed by the Department of Veteran Affairs, these loans are available for eligible veterans and active-duty service members. VA loans don’t have minimum credit or down payment requirements, but you’ll still need to meet your lender’s credit and income standards to qualify.
- USDA loans: Backed by the U.S. Department of Agriculture, USDA loans help low-income borrowers to buy homes in rural areas. USDA loans have no minimum credit score requirements.
What kind of auto loan can I get with a 705 credit score?
The best auto loan rates are usually available to people with good-to-excellent credit, but what qualifies as “good” can differ among lenders. Besides base models like FICO and VantageScore, lenders might also consider industry-specific scores such as FICO® Auto Scores.
Shopping around and comparing offers is important to finding the best terms for you. Car dealership rates may be higher than those available from banks, credit unions or online lenders.
Consider getting a preapproved car loan to boost your negotiating position at the dealership. A preapproval letter indicates that you’ve done your homework and won’t accept inferior financing. But remember that preapproval can result in a hard inquiry, which might temporarily lower your credit score.
If you already have a car loan and your credit has improved since you first took it out, refinancing could potentially secure you a better rate.
Next steps: Learn more about your credit score
Good credit can provide access to borrow money with favorable terms, but the very best rates and products are typically reserved for those with excellent credit.
To boost your credit from good to excellent, start by understanding your credit scores and reports. You can check your TransUnion and Equifax credit reports for free on Credit Karma.
Regularly reviewing your credit helps you catch errors early and understand the factors affecting your scores. By using Credit Karma’s free credit monitoring, you’ll also receive alerts and tips to aid in improving your credit.
If you find inaccuracies on your credit report, you should promptly dispute the errors by contacting the credit bureaus.
*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.