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 726 a good credit score?
Yes, without a doubt! According to Experian, the average credit score of American consumers as of 2021 is 726, which puts one firmly within the “good” credit range. This rating shows that you typically manage your money sensibly and make your bill payments on time. There’s always space for improvement, though, and knowing your credit score can open up even more advantageous financial options.
What does a 726 credit score mean?
With a 726 credit score, you’re considered a low-risk borrower in the eyes of lenders. This means you’ll likely qualify for loans and credit cards with favorable interest rates and terms. However, you might not qualify for the absolute best rates reserved for borrowers with exceptional credit scores
Benefits of a 726 credit score:
- Access to a wide range of loans and credit cards: Your good credit score opens doors to various financial products, including personal loans, mortgages, auto loans, and credit cards with competitive interest rates and terms.
- Lower interest rates: A higher credit score translates to lower interest rates on loans, which can save you thousands of dollars over the life of the loan.
- Better credit card offers: You’ll qualify for credit cards with higher credit limits, valuable rewards programs, and lower annual fees.
- Improved financial standing: A good credit score reflects your responsible financial behavior and can positively impact your overall financial standing.
Challenges with a 726 credit score:
- May not qualify for the best rates: While a 726 credit score is good, it may not be high enough to qualify for the absolute best interest rates and terms on loans and credit cards.
- Higher insurance premiums: Some insurance companies consider credit scores when setting premiums, so a lower score could lead to higher insurance costs.
How to improve your 726 credit score:
- Pay your bills on time: This is the single most important factor in your credit score. Make sure to pay all your bills, including credit card bills, utility bills, and rent, on time every month.
- Keep your credit utilization low: Aim to use less than 30% of your available credit. This shows lenders that you’re not overextending yourself financially.
- Limit new credit applications: Every time you apply for new credit, a hard inquiry is placed on your credit report, which can temporarily lower your score. Only apply for new credit when you need it.
- Become an authorized user on a responsible credit card: If you have a friend or family member with good credit, ask them to add you as an authorized user on their credit card. This can help improve your credit score without having to open a new account.
- Dispute any errors on your credit report: Mistakes happen, and sometimes errors can appear on your credit report. It’s important to review your credit report regularly and dispute any errors you find.
Additional Resources:
- Credit Karma: https://www.creditkarma.com/credit-scores/726
- Upstart: https://www.upstart.com/credit-score/726-credit-score
- Experian: https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-is-a-good-credit-score/
A 726 credit score is a solid foundation for a healthy financial future. By understanding your credit score and taking steps to improve it, you can unlock even better financial opportunities and achieve your financial goals. Remember, a good credit score is not just a number; it’s a reflection of your financial responsibility and a key to unlocking a brighter financial future.
Why Having a Good Credit Score Is Important
Having good credit can make achieving your financial goals easier. It might mean the difference between getting approved for or denied for a significant loan, like a mortgage or auto loan. And, it can directly impact how much youll have to pay in interest or fees if youre approved.
For instance, there could be a $161 monthly difference between obtaining a 620 FICO® Score and a 670 FICO® Score for a 30-year, fixed-rate $250,000 mortgage. Thats extra money you could be putting toward your savings or other financial goals. Over the lifetime of the loan, having the better score would save you $57,842 in interest payments. Learn more about what credit score you need to buy a house.
Furthermore, credit scores have an effect on non-lending decisions, like whether or not a landlord will let you rent an apartment.
Your credit reports can also impact you in other ways. Before deciding to hire you or give you a promotion, some employers may look over your credit reports but not your credit scores. Additionally, insurance companies may use credit-based insurance scores in the majority of states to help determine your life, home, and auto insurance premiums.
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.
TOP 5 Benefits Of A High Credit Score (Most People Don’t Know About!)
FAQ
Can I buy a house with 726 credit score?
Can I buy a car with 726 credit score?
How rare is a 750 credit score?
What is an excellent credit score?
Is 727 a bad credit score?
The answer is that credit score under 727 is considered a good score and is actually very close to even qualifying the holder as an excellent credit risk.
Is a 725 credit score good or bad?
A 725 credit score is considered good, according to the FICO model. Having good credit means you have more options for mortgages — and can expect interest rates between 3.62% and 4.12%. While a 725 credit score is good, you can save even more money on lower interest rates by boosting your score.
Is a credit score of 717 considered a good score?
Credit scores of 717 are considered good. people who achieve good credit are those who typically have scores between 700 and 749, while people with poor credit scores are generally unattractive and ineligible to qualify for the best mortgages, auto, and credit cards possible.
Is 756 credit score good or bad?
The higher the number, the better the credit score is. A 756 credit score is not great, but it is good. 756 is a good credit score. Someone with a credit score of 756 will probably be able to get a loan with good interest rates and favorable terms.