Is 750 a Good Credit Score?

Wondering whether 750 is a good credit score? You will be relieved to find out that 750 is, in fact, classified as “very good” credit, which is even better than a “good” one. Borrowers with very good credit can benefit from a variety of financial products, including credit cards and personal loans. Plus, once you cross the 750 threshold, you will more than likely enjoy quite attractive rates and terms.

Highlights/ Key Takeaways

• Around 46% of Americans are able to achieve a credit score of 750 or above.
• Credit score of 750 is considered “very good,” when it falls in the 740 to 799 range within the standard FICO credit scale of 300 to 850.
• Borrowers with scores within the “very good” range typically qualify for great interest rates and a variety of financial products.
• If you manage to raise your credit score further into the “exceptional” range, you will qualify for the most attractive product offerings and the very best lending terms on the market.

The Impact of a 750 Credit Score on Your Financial Future

Consumers who were able to achieve a very good credit score of 750 have a proven track record of great credit management and timely bill payments. Their credit file has little to no late payments and other negative records; if such records do appear, they are likely a few years old.

This means that applicants with very good credit are attractive customers to traditional banks and credit unions, who typically offer above-average lending terms. If you have recently achieved a 750 credit score, you can benefit from a variety of new financial opportunities, including credit cards and personal, auto, or home loans. For example, you may be able to refinance an older loan at a better rate or sign up for a credit card with attractive rewards and a relatively low interest.

Benefits of a 750 Credit Score

The benefits of a 750 credit score can include everything from lower car insurance premiums to more enticing credit card offerings. Because credit scores are calculated based on your overall credit history, a very good score is a sign of healthy credit management, which is key to enjoying these benefits:

• Lower credit card and personal loan interest. In general, the higher credit score you are able to achieve, the lower interest rates you can qualify for.
• Higher credit limits. Banks and credit unions are willing to lend more money to low-risk borrowers, - and borrowers with a credit score of 750 are considered low-risk.
• No security deposit on a cell phone purchase. Some cell phone retailers require a security deposit from buyers with poor credit scores. If your credit score is 750 or above, you will be able to avoid these up-front costs.
• Better rates on car insurance. Some car insurance companies use applicants’ credit scores to determine policy premiums and renewal offerings.
• Savings on other types of insurance. Other insurance companies may also consider your credit history. This means that with a credit score of 750 or above, you will be able to enjoy lower home insurance payments, for example.
• Problem-free utility services. According to the Federal Trade Commission, your credit history may be considered when you set up accounts for utilities like gas, water, and electricity.
• More housing options to choose from. Whenever you apply to rent an apartment, your potential landlord will review your credit history to ensure that you will not miss your payments. In addition, a 750 credit score can help you qualify for a mortgage and even get a lower interest rate.

Achieving a 750 Credit Score: Proven Tips and Tricks

Your payment history is the most important factor contributing to your credit score. Therefore, achieving a 750 credit score requires consistency and commitment when it comes to paying bills and using your credit.

• Always pay bills on time. Aim to never miss a payment deadline. Missed payments signal a risky borrower, indicating poor money management skills and potential financial distress. This, in turn, prevents you from elevating your credit score.
• Keep your credit balances low. Having a lot of debt puts pressure on your financial situation, which means you will be more likely to miss payments. By paying off your credit debt regularly and keeping your credit balances low, you will be able to slowly but surely build your credit score.
• Keep an eye on your credit report. Regularly use free credit monitoring tools and services like AnnualCreditReport.com. If you notice any fraudulent activity or credit report errors, reach out to the creditor to get them fixed as soon as possible.
• Limit the number of credit inquiries. Multiple credit applications and hard checks can have an adverse effect on your credit score. If you do need to apply for credit, try to receive all of the quotes within a two-week period to minimize their negative impact.
• Diversify your credit mix. Aim to have a good mix of different types of credit. For example, you can have a credit card, a car loan, and a mortgage.
• Do not close old credit accounts. If you no longer need a credit account, don’t rush to close it. Keeping old accounts active will increase the length of your overall credit history, which is a good bonus in helping you achieve a 750 credit score.

“Achieving a 750 credit score requires consistency and commitment when it comes to paying bills and using your credit.”

How Long Does It Take to Get a 750 Credit Score?

The time required to get a 750 credit score will vary greatly depending on your starting point and a variety of factors, including the length of your credit history, your current score, and any past issues with your credit.  For example, if you are trying to recover from a financial mishap, the time necessary to bring your credit score back up can range from 3 months after maxing out a credit card account to 6+ years after declaring bankruptcy.

Maintaining a 750 Credit Score

If you were able to achieve a 750 credit score, you will likely be able to maintain it by following the same proven practices of healthy credit utilization:

• Pay off any outstanding balances and continue to pay bills on time.
• Do not use more than 30% of your credit card limit and pay off at least the minimum amount every month.
• Monitor your credit score online and examine the report for any errors.
• Do not apply for new credit unless absolutely necessary.
• Do not close old credit accounts and keep a good mix of different types of credit.

Overall, to keep your credit report in good shape, you need to avoid poor credit practices. This includes closing out old accounts, submitting multiple new loan applications, maxing out credit cards, and missing regular payments.

How to Scale Up and Achieve an Excellent Score?

If your credit score is 750 or above, you are already doing a great job laying the foundation of your financial success. Keep up the good work, and your patience and commitment will be rewarded over time.

It is worth noting that the two most important factors used to calculate credit scores are your payment history (35%) and the amount owed (30%). So, if you wish to achieve a higher score faster and qualify for personal loans for excellent credit, focus on never missing a payment and keeping your credit balances low.

A 750 Credit Score vs. Other Credit Score Ranges

While credit score ranges and their meanings vary depending on the scoring model, they are typically similar to the following:

• 300 to 579: Poor. Individuals in this range are considered high-risk and have difficulty being approved for new credit.
• 580 to 669: Fair. Borrowers in the “fair” range often need to consider alternative lending options with higher interest rates and less favorable terms.
• 670 to 739: Good. Lenders generally view borrowers within the “good” range as low-risk. As such, personal loans for good credit typically come with decent rates and terms.
• 740 to 799: Very Good. Individuals with very good credit can expect more attractive rates and terms and can easily qualify for new credit. A 750 credit score falls within this range.
• 800 to 850: Excellent. Borrowers with excellent credit scores qualify for the highest credit limits, the lowest credit rates, and the most enticing credit card rewards available on the market. 

While personal loan applicants with fair to poor credit scores can expect to receive a rather high APR ranging from 22.02% to 27.7%, the situation changes drastically once you cross the 700 threshold. From there, the average personal loan APR drops to 16.14%, reducing further to 12.14% once you achieve a credit score of 750.

Final Word

If you find yourself asking whether 750 is a good credit score, don’t fret! It is a very good credit score indeed, which means that you can easily qualify for new credit and receive attractive rates and terms. Continue making responsible financial decisions, and, over time, your credit score will increase further, thus elevating your chances of receiving even better financial offerings.