Finimpact

FAQ

Is 740 a good credit score to buy a car?

740 is a very good credit score when you buy a car. Whether financing your purchase through the manufacturer’s credit arm or using your bank, you should find approval to go smoothly.  

Is 740 a good credit score to buy a house?

You should have no difficulty securing a mortgage with a credit score of 740. That score shows lenders that you make it a practice of paying your bills on time and have used credit responsibly. Lenders are looking for reasons to approve your applications; a score of 740 certainly helps give them one.

Is a 740 credit score considered excellent?

That depends on the lender. As we’ve seen, Capital One considers 740 to be “excellent,” while the three credit bureaus consider it “very good.” Either way, a score of 740 is a sign that you pay your bills on time and are an acceptable risk for future loans, such as a personal loan  with a lower interest rate through lenders evaluated by FinImpact.

What percentage of people have a 740 credit score?

According to Experian, a score of 740 is “above average.” It puts you in the “very good” range, getting you better interest rates and additional credit when needed. Only 25% of all consumers have FICO scores in this range.

Does having a 740 or better credit score improve my loan approval chances?

Yes, the higher your credit score, the better the chance that a lender will approve your loan application. Lenders only make money when they are repaid by the borrower on time and in full. Having a very good to excellent credit score gives them confidence that you’ll be a borrower they can trust to fulfill your end of the agreement.

About the Author

Bob Phillips

Written by: Bob Phillips

Financial advisor and content writer

Bob has 15 years of experience as as a financial advisor/trainer/agency manager for several major financial services companies. He earned numerous awards for personal production and agency leadership during his financial career.

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