Credit Karma is a website that offers a free service that lets you check your credit scores and reports. In the UK, Credit Karma uses TransUnion’s scoring system, which ranges from 0 to 710. TransUnion’s range is different from other credit agencies like Experian and Equifax, which have their own scoring systems.
This means that your 707 score means something different on Credit Karma than on ClearScore or Experian.
If your score is 707 on Credit Karma, then you’re in the ”Excellent” category on TransUnion. This is the highest credit score band and, as you can imagine, it can give you access to the very best deals on loans, credit cards, and mortgages.
A credit score is a number that lenders use to evaluate your creditworthiness and determine the likelihood that you will repay a loan. Your credit score plays a major role when applying for credit cards, auto loans, mortgages and other types of financing So what does a credit score of 707 mean specifically? Let’s take a closer look.
An Overview of Credit Scores
There are a few different credit scoring models used by lenders, but the most common is the FICO score developed by Fair Isaac Corporation. FICO scores range from 300 to 850. In general, the higher your score, the lower your perceived credit risk to lenders.
FICO scores are grouped into the following ranges:
- 800-850: Exceptional
- 740-799: Very Good
- 670-739: Good
- 580-669: Fair
- 300-579: Poor
With a score of 707, your credit is “Good.” But what exactly does it mean to have “Good” credit?.
What a Credit Score of 707 Means
A credit score of 707 is considered good by most lenders. Good credit typically means you have a reasonable credit history and your past borrowing demonstrates responsible behavior.
Specifically a credit score of 707 indicates
- You pay your bills on time most of the time
- You have a moderate amount of debt compared to your total available credit
- You have several open credit accounts in good standing
- You have an acceptable mix of credit types like credit cards, auto loans, etc.
- You have a few credit inquiries from applying for new credit
While 707 doesn’t qualify as “excellent” credit, it shows lenders that you are a relatively low credit risk. You’ll likely get approved for most credit products you apply for, just maybe not at the very best terms reserved for higher scores.
Credit Score Factors
When calculating your credit score, the FICO model examines five main factors from your credit reports:
- Payment history (35%) – Whether you pay your bills on time. The most important factor.
- Amounts owed (30%) – How much you currently owe compared to your credit limits. Keep balances low.
- Length of credit history (15%) – How long you’ve had credit. The longer the better.
- New credit (10%) – How much new credit you’ve acquired recently. Too many new accounts can lower scores temporarily.
- Credit mix (10%) – Whether you have different types of credit accounts like credit cards, installment loans, etc.
It might help you understand why your score is the way it is by looking at these areas. One thing that might be lowering your 707 score is a short credit history or high balances compared to your credit limits.
What a 707 Credit Score Means for Lenders
Different lenders have different requirements, but in general, a credit score of 707 or higher is “good” and will get you most types of credit, such as:
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Credit cards: You should be able to get regular cash back and reward cards. Excellent perks may require 700+ scores.
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Personal loans – Interest rates may be a bit higher than with 720+ scores, but approval is likely.
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Mortgages – You can likely qualify for conventional mortgages and government-backed loans like FHA, USDA and VA loans.
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Auto loans – Prime lending terms require 720+ scores, but you should still get approved. Shop for best rates.
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Apartment rentals – Most landlords accept credit scores of 700+ though a few may require higher.
So while a credit score of 707 isn’t going to get you the absolute best terms, it demonstrates to lenders that you are a low credit risk and opens up a variety of credit options.
How a 707 Credit Score Compares
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A 707 credit score is slightly higher than the average FICO score of 714.
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About 21% of consumers have credit scores in the good 700-749 range.
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A 707 score is better than 65% of Americans based on the current U.S. credit score distribution.
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Applicants with 707 credit scores are 60% less likely to become seriously delinquent than those with scores below 580.
So while it’s not considered top-tier credit, a 707 score demonstrates good financial responsibility compared to many other consumers. But there is still room for improvement.
How to Improve Your Credit Score from 707
If you want to bump your credit score above 707, here are some tips:
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Always pay bills on time – Set up autopay or reminders to avoid late payments.
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Lower credit utilization – Keep balances below 30% of your credit limits.
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Don’t close old accounts – Having longer credit histories helps your score.
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Limit new credit applications – Too many can negatively impact your score.
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Monitor your credit – Review reports regularly and dispute any errors.
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Ask for credit limit increases – This can lower your overall utilization.
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Become an authorized user – Get added to a spouse or family member’s old account.
With diligent credit management over time, you can steadily increase your score and qualify for better rates. Be patient as change takes time.
The Takeaway
A FICO credit score of 707 is considered good by most lenders and provides access to a variety of credit products, potentially just not at the lowest interest rates. Scores above 740 are generally needed for prime borrowing terms. If you wish to improve your credit standing, focus on the key factors that make up your score – payment history, credit utilization, credit history length, new accounts and credit mix. Monitor your progress over time. With responsible credit behavior, a 707 score can eventually become an exceptional one.
Why is my credit score 707 on Credit Karma?
We presume you’re probably not asking this because you’re complaining. But if you’re curious about why exactly you have a credit score that’s “Excellent”, the answer is usually down to a few simple things:
- You don’t have any missed payments in your credit history.
- You also probably have more than a few credit accounts, with a healthy and long activity.
- You don’t have any judgments or defaults registered against you, at least not in the past 6 years.
- You don’t rely on credit to make ends meet so you have a low credit utilisation.
- And you’ve made it easy for TransUnion and lenders to verify your identity because you’ve registered to vote.
In short, the lenders know you’re a responsible borrower who pays bills on time and is stable financially.
Does having a 707 score on Credit Karma mean I’ll automatically get approved for credit?
You might expect that having an “Excellent” credit score can mean automatic approval whenever you apply for a loan or another financial product.
The reality, though, is a bit more complicated.
First of all, TransUnion (where Credit Karma gets your score from) is the UK’s third largest credit reference agency. Each agency gets slightly different data and calculates your score differently. This means that having an “Excellent” credit score on TransUnion doesn’t mean that you’ll have one on Equifax or Experian. So check those scores as well to see where you stand.
Second, it’s also possible to simply have errors in one credit file – if your Credit Karma score is much higher than what you see on ClearScore or Experian, check those credit reports and correct anything that might seem off.
Third, lenders will always want to see that you actually can afford making payments on time. So expect to have to provide proof of income and other details regardless of how good your credit score is.
Finally, sometimes you can have a good or excellent credit score but still be refused because lenders want to see more meat to your credit file. It’s very possible to have a very high credit score but one that’s calculated on the basis of a very small credit agreement – for example, an active mobile phone contract that’s a few years old.
This is why, if your TransUnion credit score is 627-710, you should have two main priorities:
- Keep your credit score in the “Excellent” band. You can do this by using Direct Debit, payment reminders, or an arranged overdraft line to avoid missed payments. wherever possible, or a banking app with “upcoming payment” reminders. You should also update your electoral registration every time you move.
- Add more depth to your credit file with another credit agreement. This is where a credit-building subscription like Wollit can help.
Wollit keeps your credit in great shape by reporting your monthly subscription as loan repayment to all three main credit reference agencies, including Equifax – which is where Credit Karma gets its data from. This helps you maintain your credit history, which is the main factor that matters for your credit score.
On top of this, Wollit can also add your monthly rent payments to your credit file. While you won’t see this in your Credit Karma account (Wollit reports rent to Experian), it can still make a real difference. This is because it can show lenders that you pay all bills on time and you’re indeed as responsible as your credit score says.
It can also save you quite a bit of money. Dropping to the next Credit Karma band, called “Good”, could mean as much as £50,000 in additional interest on a mortgage of £400,000. That’s a lot to pay for letting your credit score slip. Time to act.
Is 707 A Good Credit Score? – CreditGuide360.com
FAQ
Is a 707 a good credit score?
First, to put the 707 credit score (FICO) in perspective, credit scores range from 300-850. The higher the number, the better the credit score is. A 707 credit score is not great, but it is good. 707 is a good credit score. Someone with a credit score of 707 will probably be able to get a loan with good interest rates and favorable terms.
Is 709 good credit?
The answer is that credit score under 709 is considered a good score and is actually very close to even qualifying the holder as an excellent credit risk. If you have a credit score of 709 and want to borrow money for any reason, you will probably be approved for a loan. Not only that, but you will also be able to get the money at a good rate.
Is a credit score of 702 good enough?
As you can see below, a 702 credit score is considered Good. Most lenders will lend to borrowers with credit scores in the Good range. However, you still have room for improvement. If your credit score is 702, you should work on improving it before you apply for any loans to make sure you get the best interest rates.
Is a credit score of 717 considered a good score?
Credit scores of 717 are considered good. People with credit scores between 700 and 749 usually have good credit. People with bad credit, on the other hand, are usually not attractive and can’t get the best mortgages, auto loans, or credit cards.
How good is a 707 credit score?
Your score falls within the range of scores, from 670 to 739, which are considered Good. The average U.S. FICO® ScoreΘ , 714, falls within the Good range.
Can I get a loan with a 707 credit score?
You can get a personal loan with an 707 credit score, but not every lender may approve you. Some lenders require scores well into the 700s for consideration. However, depending on the lender, you may get a personal loan with rather competitive terms.
How rare is credit score over 800?
What it means to have a credit score of 800. A credit score of 800 means you have an exceptional credit score, according to Experian. According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.
Is it possible to have a 750 credit score?
A score in the high 700s or 800s is considered excellent. About a third of consumers have FICO® Scores Θ that fall between 600 and 750—and an additional 48% have a higher score. In 2023, the average FICO® Score in the U.S. was 715.