In effect, yes, a 700 is good, but it’s not great.  You are not considered much of a risk to lenders, so your chances of being approved for a loan are high, perhaps just as good as someone with an even higher score.  The only difference for you would be the terms of the loan; you will most likely have to pay a higher interest rate than the person with the better score.

The interest rate is a way for the creditor to safeguard their investment as much as possible, making sure they’ll get it back.  The lower your score, the riskier of an investment you present, and the higher your interest rate goes.  And that goes for all loans: mortgages, auto loans, equity loans, personal loans, etc.

To guarantee yourself the best rates possible, you should consider working to raise your score.  Even a 720 will be better than a 700, as you’re officially part of the “excellent” category then.  A higher score is also a better way to ensure that there is less discrepancy between your scores from each of the three credit bureaus.  Each one will rank you differently according to their scoring formula; so you could have a 720 from Experian and a 726 from Equifax but a 710 from Trans Union, leaving one in the “good” category instead of “excellent”.

A discrepancy like the example isn’t really enough to ruin your chances of getting a good loan, but even that tiny jump into the next category could be the difference between an okay interest rate and a great interest rate.  You can raise your score by paying your bills on time and in full, keeping your balances low, and using your credit responsibly.  After that, let time do its work—the longer your positive history, the higher your score can go.

You probably have some major negative marks on your history, such as a bankruptcy, home foreclosure, or default on a loan.  These negative marks are likely to be recent, and the amount of these marks far outweighs any positive history you might have.  Paying off your credit card debt is great and extremely helpful to your credit score, but a foreclosure will weigh it back down like a ton of bricks.

Such a low score is likely to be caused by serious financial problems, and you’re probably well aware of them.  If you’re having trouble paying your bills, your credit will take a hit.  Consistent late payments will bring it down, and the larger consequences like bankruptcy or collections will send it through the floor.  This will make it harder for you to get approved for loans or other new lines of credit.  Even if you do manage to get approval, the terms will be brutal.  Your credit limit is likely to be low, and your interest rates will be outrageously high.

So what can you do to fix it?  At this stage, some professional finance counseling might be a good idea to help you find a good starting point on your personal debt.  Aside from that, the simplest answer is to start establishing good credit habits right away.  Pay your bills on time, and try to focus on paying down smaller debts first to start creating a positive history.  Work at keeping your balances low.  Ideally, you want to use no more than 30% of your available credit.

The last thing you can do is to wait.  The more time you put between the present and your negative history, the more your credit will improve.  Get your credit habits in check in the meantime; then, once you’re back on the right track, you’ll be more likely to stay there.