Is 704 a Good Credit Score?

By Lauren Ward

When you’re applying for financing, most lenders view a 704 credit score as good. That means from a credit perspective, you’re likely to qualify for financing with better rates than individuals with lower scores. You do, of course, need to meet other financial requirements as well. Plus, there’s still some room for improvement, so keep reading to find out exactly what a 704 FICO® score means.

What Does a 704 Credit Score Mean?

A 704 credit score falls into the “good” category on a typical credit score range. It’s also in line with the average American’s credit rating. According to FICO, the credit scoring model used in most lending decisions, the average credit score in the U.S. is 717. VantageScore, another popular credit scoring model, cites its average score as 702.

As you can see, if you have a 704 credit score, you’re right in line with most other Americans. Still, there’s room for improvement. Here’s how FICO categorizes its scores so you can compare a score of 704:

•   Poor: Less than 580

•   Fair: 580 to 669

•   Good: 670 to 739

•   Very good: 740 to 799

•   Exceptional: 800+

How to Build Your Credit Score

If you have a 704 FICO Score, there’s a good chance you already qualify for a wide range of financial products. But taking steps to get an even higher score can help you qualify for better-quality financing products and lower interest rates.

Factors that impact your score include your credit utilization, payment history, credit history length, types of credit you use, and recent credit or loan applications. Find out which areas of your credit report need help in order to strategically improve your score as quickly as possible.

For example, if your payment history is less-than-stellar, you may want to consider setting up automatic bill payments so you never miss a due date. Or if you’re using too much of your available credit, try paying down balances.

Some free credit monitoring services may also offer tips on how to improve your score based on the information in your credit report.

What Else Can You Get With a 704 Credit Score?

With a 704 credit score, you’re well on your way to qualifying for multiple types of financing. But your score may affect your application differently depending on what kind of financing you’re looking for.

Here’s what to expect with a 704 credit score when trying to get a credit card, auto loan, mortgage, and personal loan.

Can I Get a Credit Card With a 704 Credit Score?

Each creditor has its own minimum credit score requirements. That said, your credit card approval odds are good as long as you have a score of 700 or higher. So with a 704 credit score, you’ll likely get approved.

However, remember to apply for cards strategically. With each application, a lender performs a hard credit pull that can lower your score by around five points. Inquiries can impact your score for a year and stay on your credit report for two years. If you have a 704 and apply for a few credit cards in a 12-month period, your score could drop below the 700 threshold and make it harder to qualify for a credit card.

Getting preapproved with a soft credit check gives you a sense of what kind of credit terms you qualify for without actually hurting your score. That lets you compare a few different options to see which cards offer the best APR, fees, and credit limits.

Can I Get an Auto Loan With a 704 Credit Score?

Can you get a 704 credit score car loan? Yes, a 704 is a good credit score for qualifying for this type of financing. In fact, there’s no minimum credit score for an auto loan. However, in addition to meeting credit score requirements, you’ll also need to showcase your ability to make your monthly payments along with a few other financial qualifications.

For instance, you must prove that you bring in a steady income, typically by submitting copies of recent pay stubs, W-2s or 1099s, or bank statements. If you’re self-employed, you may need to show your two most recent tax returns.

Lenders also look at your debt-to-income ratio (DTI). That means you can’t exceed the maximum ratio of debt payments compared to your income each month, including the new car payment. Generally speaking, lenders consider a DTI of 36% and below as good. That means all of your debt payments can only account for 36% of your pretax income each month. However, you may be able to qualify for a car loan with a higher rate.

Finally, depending on the lender, you may also need to provide a down payment. A larger down payment helps keep your payments lower and could help you qualify for better terms.

Can I Get a Mortgage With a 704 Credit Score?

A 704 credit score can get you a good mortgage rate. But as with an auto loan, your credit score isn’t the only factor mortgage lenders look at when evaluating an application. There are also multiple home loan programs that each have different credit score criteria. And lenders can implement even stricter minimums if they choose.

There are four main types of mortgage loans that most homebuyers choose from:

•   Conventional loans: This type of mortgage is the most common and has stricter requirements compared to federally insured mortgages. You typically need at least a score of 620 to qualify, so borrowers with a 704 should meet the credit requirement.

•   FHA loans: This government-backed home loan program has flexible credit requirements, but your score impacts the minimum down payment required. With a 704 credit score, you can make just a 3.5% down payment. Borrowers can still qualify with a score as low as 500, but will need to make a 10% down payment.

•   VA loans: This mortgage program is for veterans, military members, and surviving spouses. There is no specified credit minimum, but most lenders have a bottom threshold around 620, making it easy to qualify with a 704 score.

•   USDA loan: Like a VA loan, there are no specific credit score requirements for a USDA loan. However, eligible homes are restricted to designated rural areas and you must meet income requirements in order to qualify.

Can I Get a Personal Loan With a 704 Credit Score?

Whether you’re looking to consolidate credit card debt or fund a home renovation, a personal loan is likely within reach if you have a 704 credit score. Note that personal loans often come with cheaper rates than credit cards, especially if your score has recently improved.

As you weigh your financing options, use a personal loan calculator to estimate your monthly payments based on the loan amount, repayment term, and interest rate. If the rate is higher than you’d like, consider holding off on a formal application until your score has improved a bit.

The Takeaway

Wondering if a 704 credit score is good? In general, it is. With that score, you may get approved for most types of financing, including credit cards, mortgages, auto loans, and personal loans. Other financial factors, such as your income and debt-to-income ratio, could also impact a lender’s decision. If your score isn’t where you want it to be, consider taking steps to build it up. For example, be sure to consistently pay bills on time, avoid using too much of your available credit, and pay down balances on revolving debt.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

View your rate