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.
793: A Credit Score to Be Proud Of
Congratulations! Having a credit score of 793 puts you squarely in the “excellent” credit category, which is a noteworthy accomplishment. With this excellent rating, you can take advantage of a plethora of financial opportunities, such as getting the best loan interest rates and being eligible for premium credit cards with special benefits.
Benefits of a 793 Credit Score:
- Favorable Loan Terms: With a 793 score, you’ll likely qualify for the most competitive interest rates on mortgages, auto loans, and personal loans, potentially saving you thousands of dollars over the life of the loan.
- Access to Premium Credit Cards: Many high-end credit cards with lucrative rewards programs and travel benefits require a credit score of 793 or higher. These cards offer cashback, points, and exclusive perks that can significantly enhance your financial journey.
- Enhanced Financial Security: A high credit score demonstrates responsible financial management, making you a more attractive candidate for insurance policies and other financial products.
Beyond the 793: Reaching for Perfection
While a 793 is impressive, there’s always room for improvement. By aiming for an “exceptional” credit score (800-850), you can unlock even more financial advantages.
Strategies to Elevate Your Credit Score:
- Pay Bills on Time: This is the single most important factor impacting your credit score. Make timely payments on all your bills, including credit cards, utilities, and rent.
- Reduce Credit Utilization: Aim to keep your credit card balances below 30% of your available credit limit. This demonstrates responsible credit management and improves your score.
- Monitor Your Credit Report: Regularly check your credit report for errors or inaccuracies that could be dragging down your score. Dispute any errors promptly to ensure your report is accurate.
- Limit Credit Applications: Avoid applying for new credit too frequently, as each application can result in a temporary dip in your score.
Maintaining Your Excellent Credit Score:
Once you’ve achieved a 793 credit score, it’s crucial to maintain it. Maintain your timely bill payment, prudent financial practices, and efficient credit utilization management. You can make sure that your excellent credit score keeps working in your favor by being watchful.
Remember:
A 793 credit score demonstrates your sound financial management and provides access to a wealth of financial advantages. You can secure your financial future and access even more lucrative opportunities by making the necessary efforts to raise and maintain your score.
What Is a Good FICO® Score?
A good credit score falls between 670 and 739 out of the 300–850 base FICO® Score range.
FICO creates different types of consumer credit scores. The company offers “base” FICO® Scores for use by lenders across various industries, in addition to industry-specific credit scores for credit card issuers and auto lenders. FICOs industry-specific credit scores have a different range—250 to 900. The middle categories, on the other hand, are still grouped together, and a “good” industry-specific FICO® Score still ranges from 670 to 739.
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.
750 – 799 Credit Score: Key Things to Know
FAQ
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