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.
Hey there, credit score curious cats! If you’re rocking a 732 credit score, you’re right smack in the middle of the “good” credit zone. That’s pretty sweet, but let’s dive deeper and see what that actually means for your financial future
What’s the Deal with a 732 Credit Score?
According to Experian, the average American has a FICO® Score of 714. So, with your 732, you’re slightly above average, which is definitely something to celebrate. Most lenders consider a 732 score to be a decent indicator that you’re responsible with your bills and generally pay them on time.
What Can You Do with a 732 Credit Score?
Credit Cards:
Good news! You should be able to snag a standard credit card with your 732 score. However don’t expect the top-tier rewards or the lowest interest rates. Those are usually reserved for the credit score elite. You might also have a lower credit limit compared to those with higher scores.
Auto Loans:
Absolutely! Your 732 score qualifies you for an auto loan, but the interest rate you get will depend on your score. A higher score means a lower interest rate, which translates to saving some serious cash over the life of your loan. So, it pays to keep improving that score!
Mortgages:
With a 732 score, you’re golden for a mortgage. You’ll qualify for both conforming and FHA loans, which require scores of 620 and 580 respectively. However, you might not get the best interest rates, so keep that in mind.
Personal Loans:
Getting a personal loan with a 732 score is possible, but not every lender will approve you. Some require scores in the 700s. However, depending on the lender, you might still get a loan with competitive terms.
How to Make Your 732 Score Even Better:
Keep Your Credit Utilization Low:
Aim to use less than 30% of your available credit. The average consumer with a FICO® Score above 795 uses just 7% of theirs.
Apply for New Credit Sparingly:
Hard inquiries from the past 12 months can hurt your score. Recently opened accounts can also be a drag.
Let Your Credit Age:
The average consumer with a FICO® Score above 795 has an average account age of about 12 years. So, patience is key!
Pay Your Bills on Time:
This one’s a no-brainer, but it’s worth repeating. 96% of consumers with FICO® Scores above 795 have never been delinquent on a credit account.
Remember:
Your 732 credit score is a good starting point, but there’s always room for improvement. By following these tips, you can boost your score and unlock even better financial opportunities in the future.
What Is a Good Credit Score to Buy a Car?
Although a minimum credit score isn’t required to purchase a car, you should aim for a score of 670 or higher, as this places you in the good credit range. Youll qualify for better auto loan terms with a higher credit score.
Because low credit is seen by auto lenders as an indication of risk, applicants with fair or poor credit will pay higher interest rates when applying for a car loan. If your FICO® Score is below 670, aim to build credit before you buy a car. Reaching the “good” credit score range may help you qualify for lower interest and better terms.
How to Improve Your Credit Scores
To improve your credit scores, focus on the underlying factors that affect your scores. At a high level, the basic steps you need to take are fairly straightforward:
- Make all of your debt payments on time, and at least the minimum amount due. Your credit scores can be negatively impacted by even a single late payment, which can remain on your record for up to seven years. Get in touch with your creditors as soon as you suspect you might miss a payment to see if they will work with you or provide hardship options.
- Keep your credit card balances low. When comparing the credit limit and current balance of revolving accounts, like credit cards, your credit utilization rate plays a significant role in the scoring process. Lower credit utilization can improve your credit scores. The overall utilization rate of people with excellent credit is typically in the single digits.
- Open accounts that will be reported to the credit bureaus. Make sure that any credit accounts you open will be added to your credit report if you don’t have many credit accounts. These could be revolving accounts like credit cards and credit lines, or installment accounts like student, auto, home, or personal loans.
- Only apply for credit when you need it. A hard inquiry resulting from applying for a new account may slightly lower your credit scores. While the effect is usually negligible, applying for a lot of different credit cards or loans in a short amount of time may result in a bigger credit score decline.
Other factors can also impact your scores. For example, increasing the average age of your accounts could help your scores. However, thats often a matter of waiting rather than taking action.
Checking your credit scores might also give you insight into what you can do to improve them. For instance, you can look at how you’re doing in each of the credit score categories when you check your free Experian FICO® Score 8.
Additionally, you’ll receive a summary of your score profile that shows you what’s improving and detracting from your score.
Why A 700 Credit Score Can Change Your Life #askadebtcollector #clearandstrategic
FAQ
Can I buy a house with a 732 credit score?
What can you do with a credit score of 732?
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Type of Credit
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Do You Qualify?
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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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Credit Card with Rewards
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YES
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0% Intro APR Credit Card
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MAYBE
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Is 732 a good credit score to buy a car?
What is a respectable credit score?