790 Credit Score: A Deep Dive into the Good, the Bad, and the Exceptional

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 790 a good credit score? Yes! Most lenders and credit bureaus consider a 790 credit score to be Very Good. This places you among the top ten percent of credit scorers in the country, which opens up a plethora of financial benefits. However, like any good thing in life, there’s always room for improvement. Let’s examine how to elevate your 790 credit score and delve deeper into this fascinating realm.

The Perks of a 790 Credit Score: A World of Financial Advantages

A 790 credit score unlocks a treasure chest of financial advantages. Here’s a glimpse of what awaits you:

  • Lower interest rates: Buckle up for lower interest rates on loans, mortgages, and credit cards. This translates to significant savings over the life of your loans, putting more money back in your pocket.
  • Access to premium credit cards: Wave goodbye to basic credit cards. With a 790 score, you’ll qualify for premium cards with lucrative rewards programs, travel perks, and exclusive benefits.
  • Favorable insurance premiums: Your stellar credit score can even impact your insurance premiums. Some insurance companies offer discounts to individuals with good credit, leading to lower costs on car, home, and other insurance policies.
  • Increased approval odds: Lenders view a 790 score as a sign of responsible credit management. This increases your chances of loan approvals, especially for larger amounts like mortgages.

Leveling Up: From Very Good to Exceptional

While a 790 score is impressive, reaching the Exceptional range (800-850) can unlock even more financial benefits. Here are some tips to help you climb the credit score ladder:

  • Pay your bills on time, every time: This is the golden rule of credit score improvement. Late payments can significantly damage your score, so prioritize timely payments for all your bills.
  • Keep your credit utilization low: Aim to use less than 30% of your available credit. This shows lenders you’re not overextending yourself and can manage credit responsibly.
  • Limit opening new credit accounts: Every time you apply for new credit, a hard inquiry is placed on your credit report, which can temporarily lower your score. Be strategic about opening new accounts.
  • Become an authorized user on a responsible credit card: This allows you to benefit from the positive payment history of an established account, potentially boosting your score.
  • Dispute any errors on your credit report: Mistakes happen, and they can negatively impact your score. Regularly review your credit reports and dispute any inaccuracies you find.

The 790 vs. 810 Credit Score Debate: Is It Worth the Effort?

The Reddit community is abuzz with the debate: is a 790 credit score good enough, or is striving for an 810 worth the effort? While both scores fall within the Very Good range, there are subtle differences

You may be eligible for even more exclusive credit card offers and even lower interest rates if your score is 810, which brings you even closer to the Exceptional range. For some lenders, however, the distinction between an 810 and a 790 score may not be very noticeable.

Ultimately, the decision to pursue an 810 score depends on your individual financial goals and risk tolerance. If you’re comfortable with your current credit score and the benefits it offers, there’s no need to stress over a few extra points. However, if you’re aiming for the absolute best financial deals, pushing for an 810 could be worthwhile.

Beyond the Numbers: Building a Healthy Financial Future

Remember, a good credit score is just one piece of the financial puzzle. Building a healthy financial future requires a holistic approach that includes:

  • Creating a budget and sticking to it: Track your income and expenses to ensure you’re living within your means.
  • Saving for emergencies and long-term goals: Set aside money for unexpected expenses and future aspirations like retirement or a down payment on a house.
  • Investing wisely: Explore investment options that align with your risk tolerance and financial goals.
  • Seeking professional financial advice: Consider consulting a financial advisor for personalized guidance on managing your money effectively.

You can achieve financial stability and accomplish your long-term objectives by combining good financial habits with a high credit score.

Frequently Asked Questions (FAQs)

  • What does a 790 credit score mean? A 790 credit score is considered Very Good by most lenders and credit bureaus, placing you in the top 10% of credit scorers nationwide.
  • Is a 790 credit score good enough to buy a house? Absolutely! A 790 credit score qualifies you for competitive mortgage rates and favorable loan terms.
  • How can I improve my 790 credit score? Focus on paying bills on time, keeping credit utilization low, limiting new credit applications, becoming an authorized user on a responsible credit card, and disputing any errors on your credit report.
  • Is it worth striving for an 810 credit score? The decision depends on your individual financial goals and risk tolerance. While an 810 score might unlock slightly better terms, a 790 score already offers significant advantages.

Additional Resources

Remember, building a good credit score is a marathon, not a sprint. You can create the foundation for a better financial future by continuously exhibiting responsible credit behavior and making wise financial decisions.

What to Do if You Don’t Have a Credit Score

Your credit score is calculated by credit scoring models using your credit reports; however, reports with insufficient information cannot be scored.

For FICO® Scores, you need:

  • An account thats at least six months old
  • An account that has been used during the previous half-year

If your credit report has at least one active account—even if it’s only been open for a month—VantageScore can score it.

To start establishing credit if you aren’t scoreable, you might need to open a new account or add new activity to your credit report. Often this means starting with a credit-builder loan or secured credit card, or becoming an authorized user.

In addition, you can begin establishing credit immediately with Experian Go™. Even if you don’t currently have any credit accounts, Experian Go can help you establish credit by generating an Experian credit report for you. It then provides you with personalized insights on how to move forward with building credit.

Additionally, you can use Experian Boost® to receive credit for qualifying bills like utility bills, streaming subscriptions, payments for qualified rent, and more. By paying your bills on time each month, you can establish a good payment history and immediately raise your credit score.

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.

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