Your FICO® Score falls within a range, from 740 to 799, that may be considered Very Good. A 747 FICO® Score is above the average credit score. Borrowers with scores in the Very Good range typically qualify for lenders better interest rates and product offers.
According to statistics, only 1% of customers with Very Good FICO%C2%AE%20Scores are likely to become seriously delinquent in the future.
Welcome to the world of car financing with a 747 credit score! Are you wondering if you can cruise into a sweet new ride with just your 747 credit score? Well, buckle up, because we’re about to delve deep into this area.
Spoiler alert: Your 747 credit score is pretty darn good when it comes to buying a car. It lands you firmly in the “very good” credit score range, which opens the door to favorable interest rates and loan terms.
But before you hit the gas pedal on your car-buying journey, let’s take a closer look at what your 747 credit score means and how it can impact your financing options.
What Does a 747 Credit Score Mean for Car Loans?
Think of your credit score as your financial report card. A 747 score tells lenders you’re a responsible borrower with a good track record of managing debt. This translates into lower interest rates and better loan terms making your car purchase more affordable.
Here’s a quick rundown of what your 747 credit score can do for you:
- Qualify for most loan offers: With a 747 score, you’re likely to get approved for a car loan from a variety of lenders, including banks, credit unions, and online lenders.
- Score lower interest rates: A good credit score means lower interest rates, which translates into significant savings over the life of your loan. For example, a 747 score could mean a difference of thousands of dollars on a $30,000 car loan.
- Access better loan terms: With a 747 score, you’re more likely to qualify for longer repayment terms, lower down payments, and potentially even skip origination fees.
But remember, your credit score is just one piece of the puzzle Lenders also consider your income, employment history, and debt-to-income ratio when evaluating your loan application.
How Can You Improve Your 747 Credit Score for an Even Better Deal?
Even though you already have an excellent credit score of 747, you can always do better. Here are some pointers to raise your credit score and possibly get an even better auto loan offer:
- Pay your bills on time, every time: This is the single most important factor in your credit score. Late payments can significantly hurt your score.
- Keep your credit utilization low: Aim to use less than 30% of your available credit limit on your credit cards.
- Don’t apply for new credit too often: Every time you apply for new credit, it triggers a hard inquiry on your credit report, which can temporarily lower your score.
- Check your credit reports for errors: Mistakes can happen, so it’s important to check your credit reports regularly and dispute any errors you find.
Ready to Hit the Road?
With a 747 credit score, you’re well on your way to securing a great deal on your next car. Remember to shop around for the best loan terms, compare interest rates, and consider your budget before making a decision.
Happy car-buying!
Staying the course with your Very Good credit history
Your 747 credit score means youve been doing a lot right. To avoid losing ground, be mindful of avoiding behaviors that can lower your credit score.
Factors that can have negative effects on Very Good credit scores include:
Use rate on revolving credit: Your usage rate, also known as your utilization rate, indicates how close you are to “maxing out” your credit card accounts. To find the percentage for each of your credit card accounts, divide the total amount owed by the borrowing limit on the card and multiply the result by 100. Another way to calculate your total utilization rate is to divide the total amount of balances on all of your cards by the total amount of spending limits on all of them, including the limits on cards that have no balances.
| Balance | Spending limit | Utilization rate (%) | |
|---|---|---|---|
| MasterCard | $1,200 | $4,000 | 30% |
| VISA | $1,000 | $6,000 | 17% |
| American Express | $3,000 | $10,000 | 30% |
| Total | $5,200 | $20,000 | 26% |
The majority of experts advise maintaining your utilization rates at or below 20%3000%%E2%80%94 on individual accounts and all accounts combined to prevent your credit scores from declining. The closer any of these rates gets to 100%, the more it hurts your credit score. Utilization rate is responsible for nearly one-third (30%) of your credit score.
Late and missed payments matter a lot. The percentage of your score that is affected by late or missed payments is greater than one-third (35%) of your total score. Establishing a regular practice of paying your bills on time will greatly improve your credit score if you have a history of missing or late payments.
Time is on your side. However, if you carefully monitor your credit and make all of your payments on time, your credit score will eventually rise. In actuality, a longer credit history will result in a higher credit score than a shorter one if all other score-influencing factors are equal. If you’re a new borrower, your only options are to be patient and pay your bills on time. There’s not much you can do to change this. Length of credit history is responsible for as much as 15% of your credit score.
Debt composition. The FICO® credit scoring model favors having a variety of credit accounts, including both installment loans and revolving credit (accounts like credit cards that allow you to borrow against a spending limit and make monthly payments of varying amounts). g. , car loans, mortgages and student loans, with set monthly payments and fixed payback periods). Credit mix is responsible for about 10% of your credit score.
Credit applications and new credit accounts typically have short-term negative effects on your credit score. Credit-scoring systems mark you as being more likely to be unable to pay your bills when you apply for new credit or take on more debt. When that occurs, credit scores slightly decline but usually increase again in a few months as long as you make all of your payments on time. New credit activity can contribute up to 10% of your overall credit score.
When public records appear on your credit report they can have severe negative impacts on your credit score. Bankruptcies and other entries are not included in every credit report, so it is impossible to compare their percentage impact to other credit-score influences. Nevertheless, they have the power to significantly reduce your credit score by overshadowing all other factors. A bankruptcy, for instance, can remain on your credit report for 10 years. It is best for you to resolve any liens or judgments that appear on your credit report as soon as possible.
Shield your credit score from fraud
Individuals with very good credit scores may be desirable targets for identity thieves who are looking to take advantage of your hard-earned credit history. To guard against this possibility, consider using credit-monitoring and identity theft-protection services that can detect unauthorized credit activity. Before thieves can obtain fraudulent loans in your name, you can be alerted by credit monitoring and identity theft protection services equipped with credit lock features.
Credit monitoring is also useful for tracking changes in your credit scores. If your score begins to decline, it can motivate you to take action and track your progress as you strive for a FICO® Score in the Exceptional range (800-850).
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FAQ
Is 747 a good credit score for a car loan?
What can I get with a 747 credit score?
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Type of Credit
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Do You Qualify?
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Home Loan
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YES
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Personal Loan
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YES
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Auto Loan
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YES
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No Annual Fee Credit Card
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YES
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How much of a car loan can I get with a 700 credit score?
What credit score do I need to buy a $40000 car?
Can I get a car loan with a 747 credit score?
Compare car loans on Credit Karmato explore your options. Can I get a credit card with a 747 credit score? With good credit scores, you might qualify for credit cards that come with enticing perks like cash back, travel rewards, or an introductory 0% APR offer that can help you save on interest for a period of time.
Is a 747 credit score a good credit score?
A 747 credit score is considered a good credit score by many lenders. Here’s what it means to have good credit and how you can maintain your score. × Download the app 4.74.8 Get Get Intuit Credit Karma Credit Cards Shop Credit Cards Balance Transfer Cards Reward Cards Travel Cards Cash Back Cards 0% APR Cards Business Cards
What credit score do you need to buy a car?
Here is a list of our partners and here’s how we make money. You need a loan to buy a car, but with fair credit — generally a credit score between 630 and 689 — you worry you won’t qualify for a good interest rate. You might also be concerned that, with a lower credit score, the dealer might mark up your rate above what you really deserve.
Can I buy a car if my credit score is bad?
The lower your credit score, the lower your chances of you being able to buy a car. If your credit score needs a lot of work, it may be hard to find a lender who will approve you for a car loan. If you’re not able to qualify for an auto loan on your own, you may need to find a co-signer with better credit.