Your score falls within the range of scores, from 670 to 739, which are considered Good. The average U. S. FICO® Score, 714, falls within the Good range. Consumers with good credit scores are seen by lenders as “acceptable” borrowers, and they may be offered a range of credit products, though perhaps not at the lowest possible interest rates.
Approximately 9% of consumers with Good FICO® Scores are likely to become seriously delinquent in the future.
Unlocking the Secrets of Good Credit and Competitive Rates
Congratulations! Your 718 credit score places you firmly within the “Good” credit range opening the door to a world of financial opportunities. But with so many options available, it’s natural to wonder: what interest rate can I actually expect with a 718 credit score?
The answer, like most things in finance, is “it depends. The particular credit product you’re looking for, your credit history beyond your score, and the state of the market all have an impact on the interest rate you’ll get. But if your score is 718, you can be sure that you’ll get good terms and competitive rates on a range of financial products.
Let’s delve deeper into the fascinating world of interest rates and explore what your 718 credit score can unlock:
Credit Cards:
- Average Interest Rates: With a 718 credit score, you can expect average credit card interest rates ranging from 13.5% to 16.5%. However, remember that this is just an average, and your individual rate may be higher or lower depending on your credit history and the specific card issuer.
- Rewards and Perks: Many credit cards offer enticing rewards and perks to attract customers. With a good credit score, you’ll have access to cards with lucrative cashback programs, travel rewards, and valuable insurance benefits.
- Finding the Right Card: Research different cards and compare their features, interest rates, and annual fees before making a decision. Look for cards that align with your spending habits and financial goals.
Personal Loans:
- Competitive Rates: A 718 credit score can secure you competitive personal loan rates, typically ranging from 7% to 15%. The exact rate will depend on the loan amount, repayment term, and your overall financial profile.
- Flexible Options: Personal loans offer flexibility in terms of loan amounts and repayment periods, allowing you to tailor the loan to your specific needs.
- Consolidating Debt: Consider using a personal loan to consolidate high-interest debts into one manageable payment with a lower interest rate, potentially saving you money in the long run.
Auto Loans:
- Favorable Rates: With a 718 credit score, you can expect auto loan interest rates as low as 3% to 5%. These rates are significantly lower than those offered to borrowers with lower credit scores.
- New vs. Used: Interest rates for new and used car loans may differ slightly, with new car loans typically having slightly lower rates.
- Negotiate for the Best Deal: Don’t hesitate to negotiate with lenders for the best possible interest rate and loan terms. Your good credit score gives you leverage in these negotiations.
Mortgages:
- Unlocking Homeownership: A 718 credit score puts you in a prime position to qualify for a mortgage and achieve your dream of homeownership.
- Lower Interest Rates: With a good credit score, you can secure a mortgage with a lower interest rate, potentially saving you thousands of dollars over the life of the loan.
- Improved Loan Terms: A high credit score can also lead to more favorable loan terms, such as a lower down payment requirement and reduced closing costs.
Remember, your credit score is just one piece of the puzzle. Lenders will also consider your income, employment history, and debt-to-income ratio when determining your interest rate. However, with a 718 credit score, you’ve already established a solid foundation for securing competitive rates and favorable terms on various financial products.
By actively managing your credit and maintaining a good score, you can unlock a world of financial opportunities and achieve your financial goals.
Additional Tips:
- Monitor Your Credit Score: Regularly check your credit score and credit report for any errors or inconsistencies that could be impacting your score.
- Pay Bills on Time: Make timely payments on all your bills, as payment history is a significant factor in your credit score.
- Keep Credit Utilization Low: Aim to keep your credit utilization ratio below 30%. This means using only a small portion of your available credit.
- Limit New Credit Applications: Avoid applying for new credit too often, as each inquiry can temporarily lower your credit score.
You can continue to take advantage of affordable interest rates and advantageous loan terms by adhering to these suggestions and keeping up a high credit score. This will set you up for future financial security.
What’s so good about a good credit score
A short credit history with sound credit management practices may be reflected in a good credit score. Additionally, it could indicate a longer credit history tainted by a few errors along the way, like sporadic missed or late payments, or a propensity for relatively high credit usage rates.
Lenders see people with scores like yours as solid business prospects. With a good credit score, most lenders will give credit to borrowers; however, they might not give their best interest rates, and card issuers might not give you their most alluring rewards and loyalty bonuses.
How to build up your credit score
Because of your strong FICO® score, you have a decent chance of being approved for a range of loans. However, you may be able to qualify for better interest rates and save thousands of dollars in interest over the course of your loans if you can raise your credit score and eventually fall into the Very Good (740-799) or Exceptional (800-850) credit-score ranges. Here are few steps you can take to begin boosting your credit scores.
Consider credit score monitoring. Continually tracking your FICO® Score can provide good reinforcement for your score-building efforts. Rewarding consistent growth while acknowledging that sporadic setbacks are normal can serve as a useful reminder to uphold sound credit practices. Additionally, monitoring will notify you of any abrupt drops in your credit score, which could indicate that there has been unauthorized activity on your credit accounts.
Avoid high credit utilization rates. High credit utilization, or debt usage. According to this measurement, the FICO%C2%AE%20scoring%20system%20bases%20your%20credit%20score%20on%20this%20measurement%E2%80%94, which is the percentage of your available credit limit that is represented by your outstanding payment balances. Try to keep your utilization across all your accounts below about 30% to avoid lowering your score.
Try to establish a solid credit mix. Multiple credit accounts and a variety of credit types, such as installment loans like mortgages or auto loans and revolving credit like credit cards and some home equity loans, are preferred by the FICO® credit-scoring model. This implies that you shouldn’t be afraid to borrow wisely when the time is right—it doesn’t mean you should take on debt you don’t need.
Make sure you pay your bills on time. One of the best ways to raise credit scores is to avoid making late payments and to pay off past-due accounts. Establish a system and stick to it. Find an automated solution that works for you, whether it be sticky notes and paper calendars or smartphone reminders and automatic bill-payment services. After about six months of perseverance, you’ll start remembering things without being reminded—but just in case, keep the reminders handy).
What credit score is needed to get the Lowest Interest Rate?
FAQ
What kind of loan can I get with a 718 credit score?
|
Type of Credit
|
Do You Qualify?
|
|
Home Loan
|
YES
|
|
Personal Loan
|
YES
|
|
Auto Loan
|
YES
|
|
No Annual Fee Credit Card
|
YES
|
What is the interest rate for a car with a 718 credit score?
Can I buy a house with a 718 credit score?
What APR will I get with a 780 credit score?
|
FICO Score
|
Average new car rate
|
Average used car rate
|
|
781 to 850 (super prime)
|
5.64%
|
7.66%
|
|
661 to 780 (prime)
|
7.01%
|
9.73%
|
|
601 to 660 (near prime)
|
9.60%
|
14.12%
|
|
501 to 600 (subprime)
|
12.28%
|
18.89%
|
Is a 718 credit score a good credit score?
It’s accurate to the best of our knowledge when posted. A 718 credit score is considered a good credit score by many lenders. “Good” score range identified based on 2021 Credit Karma data. With good credit scores, you might be more likely to qualify for mortgages and auto loans with lower interest rates and better terms.
Can I get a personal loan with a 718 credit score?
Most lenders will approve you for a personal loan with a 718 credit score. However, your interest rate may be somewhat higher than someone who has “Very Good” or “Excellent” credit. It’s best to avoid payday loans and high-interest personal loans as they create long-term debt problems and just contribute to a further decline in credit score.
Will auto lenders lend to someone with a 718 credit score?
Most auto lenders will lend to someone with a 718 score. However, if you want to ensure you qualify for the best interest rates, you will want to continue improving your credit score. There are also several other factors that lenders consider when deciding whether to lend to you and at what interest rate.
What credit score do you need to get a mortgage?
Those with excellent credit (720 and above) usually secure the best rates. Good credit scores (690-719) often lead to competitive rates, while average scores (630-689) might attract slightly higher rates. For scores below 630, rates tend to be significantly higher, reflecting the higher lending risk. What credit score do you need for a mortgage?