In the credit score range of 300 to 850, a score of 700 or higher is typically regarded as good.
In the credit score range of 300 to 850, a score of 700 or higher is typically regarded as good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2022, the average FICO® Score☉ in the U. S. reached 714.
You may be able to get a credit card or loan with better terms and a lower interest rate if you have a high credit score. That said, different lenders use their own criteria for deciding whom to lend to and at what rates. Here are some additional details about what makes a good credit score, what affects credit, and how to raise credit.
Yo credit fam! Let’s dive into the world of credit scores and see if a 762 is something to celebrate or if there’s room for improvement.
762: A Score to Be Proud Of
Hold up, 762 is a pretty sweet credit score! It falls into the “Very Good” category, which means you’re doing a solid job managing your credit. In fact, only 25% of all consumers have scores in this range, so you’re definitely in the upper echelon.
Benefits of a 762 Credit Score
- Lower interest rates: With a 762, you’re more likely to snag lower interest rates on loans and credit cards, saving you a bundle of cash in the long run.
- Better loan options: Lenders see you as a less risky borrower, opening up a wider range of loan options with more favorable terms.
- Increased approval odds: Your chances of getting approved for loans and credit cards are significantly higher with a 762.
- Lower insurance premiums: Some insurance companies consider your credit score when setting your premiums, so a good score could mean lower insurance costs.
Is There Room for Improvement?
While a 762 is definitely something to be proud of, there’s always room for improvement. Aiming for an “Exceptional” credit score (790+) could unlock even better interest rates and loan options.
Tips to Boost Your Score:
- Pay your bills on time: This is the single most important factor in your credit score. Set up automatic payments or reminders to avoid late payments.
- Keep your credit utilization low: Aim to use less than 30% of your available credit. This shows lenders you’re responsible with credit.
- Check your credit report regularly: Look for errors or fraudulent activity that could be dragging your score down.
- Limit opening new accounts: Every time you apply for credit, a hard inquiry is placed on your report, which can temporarily lower your score.
- Become an authorized user: Ask someone with good credit to add you as an authorized user on their account. This can help build your credit history.
Remember: Building a good credit score takes time and effort. By following these tips and staying consistent with your financial habits, you can reach your credit score goals and unlock a world of financial benefits.
What Information Credit Scores Do Not Consider
FICO and VantageScore do not consider the following information when calculating credit scores:
- Your race, color, religion, national origin, sex or marital status. (U. S. The receipt of government assistance, the exercise of any consumer rights under the Consumer Credit Protection Act, and these facts are all prohibited by law from being taken into account in credit scoring formulas. ) .
- Your age.
- Your salary, occupation, title, employer, date employed or employment history. (Remember, though, that lenders might take this information into account when determining whether to approve an application overall.) ) .
- Where you live.
- Soft inquiries. Soft inquiries are typically started by other people, such as when businesses extend promotional credit offers or when your lender regularly examines your current credit accounts. Additionally, soft inquiries happen when you use credit monitoring services from firms like Experian or when you check your own credit report. These inquiries do not impact your credit scores.
Why There Are Different Credit Scores
Credit scores are a tool that lenders use to make lending decisions. Different credit scoring models are developed by FICO and VantageScore for lenders, and both businesses release updates to their models on a regular basis, much like other software companies might release new operating systems. The most recent iterations may better conform to recent regulatory requirements, take into account changes in consumer behavior or technological advancements, or both.
An example of a tri-bureau scoring model developed by VantageScore is the ability to assess your credit report from any of the three major consumer credit bureaus (Experian, TransUnion, and Equifax) using the same model. The first version (VantageScore 1. 0) was built in 2006. The latest version, VantageScore 4. 0, was released in 2017 and developed based on data from 2014 to 2016. It was the first credit score that was generic and included trended data, or how customers handle their accounts over time.
Being an established company, FICO was among the first to develop credit scoring models that utilized consumer credit reports. It develops various iterations of its scoring models to be applied to the data from each credit bureau; however, more recent iterations have a common name, like FICO® Score 8. There are two commonly used types of consumer FICO® Scores:
- Base FICO® Scores: Designed to estimate the probability that a customer will miss any kind of credit obligation, these scores are available for use by all lenders. Base FICO® Scores range from 300 to 850.
- Industry-specific FICO® Scores. For the purpose of auto lenders and card issuers, FICO generates bankcard and auto scores. Industry scores, which range from 250 to 900, are designed to forecast the possibility that a customer will miss payments on a particular kind of account.
Building upon a foundational FICO® Score, FICO offers industry-specific scores on a regular basis. The FICO® Score 10 Suite, for instance, was announced in early 2020. It consists of three scores: the standard FICO® Score 10, the trended FICO® Score 10 T, and new industry-specific scores. FICO 10 T and VantageScore 4 will be needed by mortgage lenders who deal with government-backed mortgage companies Fannie Mae and Freddie Mac. 0 credit scores in evaluating borrower eligibility in the coming years.
There are scores used more rarely as well. For example, customers can link checking, savings, or money market accounts with FICO’s UltraFICO® Score, which takes banking activity into account. Lenders may also create custom credit scoring models designed with their target customers in mind.
For the most part, lenders can choose which model they want to use. In fact, because switching could require an investment, some lenders may choose to remain with older versions.
Additionally, until you submit an application, you frequently won’t know which credit report and score the lender will use. The good news is that the same underlying data—found in one of your credit reports—is used by both VantageScore and FICO to calculate consumer credit scores. Additionally, they are all trying to predict the same thing: the probability that a person will fall behind on a bill (generally or specifically) by ninety days in the upcoming twenty-four months.
As a result, the same factors can impact all your credit scores. Depending on the scoring model and the credit report it examines, you may notice variations in your scores if you track multiple credit scores. But, over time, you may see they all tend to rise and fall together.
Why You NEED a 750 Credit Score
FAQ
Can I buy a house with a 762 credit score?
What can a credit score of 762 get you?
What is an excellent credit score?
How rare is a 750 credit score?
Can I get a car loan with a 762 credit score?
Most auto lenders will lend to someone with a 762 score. With Very Good credit scores, you should qualify for the best interest rates they have to offer. However, lenders also look at other factors, so there’s no guarantee that you’ll be approved for a loan.
Is a 762 FICO score a good credit score?
Your score falls within the range of scores, from 740 to 799, that is considered Very Good. A 762FICO®Score is above the average credit score. Consumers in this range may qualify for better interest rates from lenders. 25%of all consumers have FICO®Scores in the Very Goodrange.
What does a 762fico score mean?
37% Individuals with a 762FICO®Score have credit portfolios that include auto loan and 38% have a mortgage loan. Shield your credit score from fraud People with Very Good credit scores can be attractive targets for identity thieves, eager to hijack your hard-won credit history.
What is the average utilization rate for a 762 credit score?
Among consumers with FICO®credit scores of 762, the average utilization rate is 23.7%. The best way to determine how to improve your credit score is to check your FICO®Score. Along with your score, you’ll receive information about ways you can boost your score, based on specific information in your credit file.