If you have a credit score of 710, you have good credit.
This is according to the FICO credit score model, which breaks down the five categories of credit as the following:
- Very Poor: 300 to 579.
- Fair: 580 to 669.
- Good: 670 to 739.
- Very Good: 740 to 799.
- Exceptional: 800 to 850.
If your credit is either “Very Poor” or “Fair,” raising it typically involves a decent amount of credit repair. Once you reach a good score, as is the case with 710, you gain access to a variety of different borrowing opportunities.
Nevertheless, a credit score of 710 is still 140 points away from perfect, and there are plenty of steps you can take to improve your situation. You can start by reviewing how you got to your current score. From there, you can craft a plan to take your score from Good to Exceptional.
Table of Contents
Why Your Credit Score Is 710
Each credit score is uniquely created by the person it belongs to. Your score of 710 represents years of collective financial activity and behaviors as you’ve earned, spent, borrowed, and paid back money.
This can make it difficult to be overly specific regarding how you got your score to the 710 point. Nevertheless, there are several generic elements that tend to influence your score more than other things.
Consider each of the following six categories. With each one, examine your own personal behavior and consider if it has impacted your credit score in a positive or negative manner.
Your Payment History
Your payment history is the number one factor that influences your credit score. It makes up 35% of your credit score. Consider if you’ve made past payments consistently, in full, and on time.
Your Credit Age
The average age of your credit makes a big difference in your score, as well. You can’t get a score until you’ve had credit for upwards of half a year. Even then, your score is hampered by the relatively young age of your credit. The older the average age of all of your credit, the better it is for your score.
Your Credit Utilization Ratio
Your credit utilization ratio is derived by dividing the cash you’ve borrowed against your total available credit. If this number gets to be over 30%, it can begin to damage your score.
Your Credit Diversity
If you only have one or two lines of credit, it artificially holds back your score. The more different lines of credit (auto loans, a mortgage, student loans, credit cards) you can open and responsibly maintain, the higher your score will be.
Your Debt
Everyone has debt. However, if you have an abnormally large amount of debt, it can lower your score. This is because a lender will naturally hesitate before loaning you money when you already appear to struggle to pay back past loans.
Derogatory Marks and Hard Inquiries
Finally, if you have a derogatory mark on your credit report, it can hurt your score. This may come from anything from a missed payment to a collection claim, a foreclosure, or even bankruptcy. These can remain on your report for many years.
In addition, if you open up a new credit account, a lender may make a hard inquiry on your credit. While not a derogatory mark, this can still reduce your score for up to a year.
What Can You Do With a 710 Credit Score?
The good news is that a credit score of 710 enables you to engage in many borrowing activities that are more difficult for those with poor and fair scores to access. However, the lack of a Very Good or Exceptional score does limit the extent to which you can indulge in many of these options.
- A mortgage: A Good credit score means you should be able to get a mortgage. However, keep in mind that since the score isn’t higher, you’ll likely need to agree to a higher interest rate.
- A personal loan: From auto to home equity and other kinds of personal loans, many lenders will lend funds to those with a Good credit score — though the interest rate will likely also be inflated here as well.
- An apartment: If you’re applying for an apartment, the owner may want to conduct a credit check. Having good credit significantly increases the chances that your past financial behavior will pass muster.
- Credit cards: You should be able to open many different kinds of credit cards with a Good credit score. However, you likely won’t be able to access many of the benefits and rewards that are reserved for even higher credit scores.
While these are all excellent opportunities, many of them are naturally restricted by a score of 710. This isn’t a reason to panic. On the contrary, your score is currently in a solid place. However, it’s important to still look for ways to slowly yet steadily improve your score in the future.
How to Improve a 710 Credit Score
Now that you’ve considered how your score got to 710 and what you can do with it, it’s time to create a plan to improve your score in the future. Here are a few suggestions for ways to do so:
- Adopt good credit habits: There are many habits that can improve your credit score, such as paying off your credit cards every month, only taking a loan when you need it, and sticking to a budget.
- Check your credit report: If you have an error on your credit report, you can dispute it. Even if you have a legitimate derogatory mark, you can resolve it and then request forgiveness from the lender with a goodwill letter.
- Perfect your payment history: Even if you’re good at making payments, an occasional missed payment can come back to haunt you. Create reminders, set up autopay, and do everything you can to maintain a perfect track record with your payment history.
With a score of 710, you likely don’t need to participate in any drastic credit repair activity. However, focusing on areas like these can steadily move the needle on your score in an upward direction.
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