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.
Is a 787 credit score good?
Absolutely! A 787 credit score is considered excellent, placing you among the top tier of borrowers. This score opens doors to a wide range of financial opportunities, including:
- Favorable interest rates and terms on loans and credit cards.
- Access to premium rewards credit cards with exclusive perks.
- Higher approval odds for mortgages and auto loans.
What does a 787 credit score mean?
A 787 credit score signifies a strong credit history characterized by:
- Consistent on-time payments.
- Low credit utilization.
- A healthy mix of credit accounts.
- A long credit history.
How to get a 787 credit score:
1. Pay your bills on time, every time. This is the single most important factor in building and maintaining a good credit score. Even one late payment can significantly impact your score.
2. Keep your credit utilization low. Aim to use less than 30% of your available credit. This shows lenders that you’re responsible with managing your credit.
3. Have a mix of credit accounts. This includes credit cards, installment loans, and lines of credit. A diverse credit mix demonstrates your ability to handle different types of debt.
4. Maintain a long credit history. The longer your credit history, the better. This shows lenders that you’re a reliable borrower.
5. Monitor your credit report regularly. Check for errors and dispute any inaccuracies.
Benefits of a 787 credit score:
- Lower interest rates on loans and credit cards. This can save you thousands of dollars over the life of your loans.
- Access to premium rewards credit cards. These cards offer valuable rewards, such as cash back, travel points, and exclusive perks.
- Higher approval odds for mortgages and auto loans. This can help you secure a lower interest rate and better terms on your loan.
- Improved financial security. A good credit score can help you qualify for lower insurance premiums and other financial benefits.
Additional resources:
- Credit Karma: https://www.creditkarma.com/credit-scores/787
- WalletHub: https://wallethub.com/credit-score-range/787-credit-score
Frequently Asked Questions:
- What is a good credit score? A credit score of 720 or higher is generally considered good.
- How can I improve my credit score? Pay your bills on time, keep your credit utilization low, and monitor your credit report for errors.
- What are the benefits of a good credit score? A good credit score can save you money on loans and credit cards, and improve your financial security.
A 787 credit score is a valuable asset that can open doors to a wide range of financial opportunities. By following the tips above, you can achieve and maintain excellent credit, putting you in a strong position to achieve your financial goals.
Why Your Credit Score Changed
Numerous factors can affect your credit score, and when new information is added to your credit reports throughout the month, it’s normal for scores to fluctuate.
You may be able to point to a specific event that leads to a score change. For example, a late payment or new collection account will likely lower your credit score. Conversely, paying down a high credit card balance and lowering your utilization rate may increase your score.
But some actions might have an impact on your credit scores that you didnt expect. For example, even though paying off a loan is a good thing in terms of responsible money management, it may result in a lower score. This might be the case because it was the only loan with a low balance or the only open installment account you had on file with your credit report. You might be left with only high-balance loans after repaying the loan, or you might lose your ability to combine revolving and open installment accounts.
Perhaps you decide to stop using your credit cards after paying off the balances. While staying out of debt is a good idea, inactivity on your accounts may result in a lower score. If you want to keep your account active and establish a history of on-time payments, you might want to use a card for a small monthly subscription and then pay off the balance in full each month.
Keep in mind that credit scoring models use complicated calculations to determine a score. Occasionally, you may believe that a single event—like paying off a loan—caused your score to rise or fall, but in reality, it was merely a coincidence. In this case, your score increased because of the lower credit utilization ratio. Furthermore, a single incident does not “worth” a set number of points; rather, the point shift is determined by your complete credit report.
For someone who has never been late before, for example, a new late payment could result in a significant point decline because it could signal a shift in behavior and, consequently, increase credit risk. A person who has previously missed a lot of payments, however, might only lose a few points from a new late payment because it is already assumed that they will miss payments more frequently.
What Is a Good VantageScore?
VantageScores first two credit scoring models had ranges of 501 to 990. The two newest VantageScore credit scores (VantageScore 3. 0 and 4. 0) use a 300 to 850 range—the same as the base FICO® Scores. For the latest models, VantageScore defines 661 to 780 as its good range.