A 740 credit score is considered to lie within the excellent range of scores. Lenders look at your credit score to see if you qualify for financial products like credit cards and loans and to determine your interest rate.
Credit scoring company FICO doesn't break down how many people had a score of 740.
This is how your 740 credit score can affect your financial life.
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A 740 credit score means you will typically qualify for most financial products and get low rates.
If you are still pretty new to credit, however, that may not be the case. Lenders also consider how long you’ve had credit and how much debt you carry.
Your score is high because you already follow excellent credit habits. The following tips will help you maintain your score and maybe even take it higher, especially if you like the challenge of going for 850, the highest credit score on most scales.
Consider setting up automatic payments. A single late payment can knock as much as 100 points off your score. If you don’t use automatic payments, consider setting them up to avoid the risk of missing a payment and wrecking your score.
Keep an eye on credit utilization. Use less of your credit limits because that is an important factor in your score. You can make multiple payments throughout a single billing cycle to keep utilization consistently low. Ideally, below 30% is good across your credit cards, and the lower, the better for your score.
Watch for errors on your credit reports. Mistakes on credit reports are common and they can prevent your score from going higher. You have free weekly access to credit reports at all three major credit bureaus. Dispute any errors you find with the bureaus.
A 740 credit score is Very Good, but it can be even better. If you can elevate your score into the Exceptional range (800-850), you could become eligible for the very best lending terms, including the lowest interest rates and fees, and the most enticing credit-card rewards programs.
A FICO Score between 740 and 850 is generally considered to be in the very good to excellent credit score range to buy a home. If your score falls below this level, however, you may still be eligible for some mortgage opportunities in the financial marketplace.
The required credit score to buy a $300K house typically ranges from 580 to 720 or higher, depending on the type of loan. For an FHA loan, the minimum credit score is usually around 580.
The minimum FICO score needed for a conventional loan is 620. A borrower will get the best rate with a score of 740 or higher. Someone with an 850 score—the highest score for most FICO versions—will not get a better rate than someone with a 740 score.
One rule of thumb is that the cost of your home should not exceed three times your income. On a salary of $70k, that would be $210,000. This is only one way to estimate your budget, however, and it assumes that you don't have a lot of other debts.
An individual earning $60,000 a year may buy a home worth ranging from $180,000 to over $300,000. That's because your wage isn't the only factor that affects your house purchase budget. Your credit score, existing debts, mortgage rates, and a variety of other considerations must all be taken into account.
The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.
Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
The latest credit score data is in and as of October 2023, the national average FICO® Score now stands at 717. This is one point lower than it was earlier in 2023 and reflects the first time the metric has decreased in a decade as shown in Figure 1.
To increase your credit score to 800, you'll need a nearly flawless payment history, a credit utilization rate well below 30%, a healthy mix of credit types, and an extensive credit history. The average American has a credit score of 716, well within the range of what is considered a good credit score.
Once you get above 740/750/760 or so, Rossman says it's just bragging rights. “Lenders are unlikely to view a perfect 850 differently from an 800 or even a 760. Where it starts to matter a lot more is on the margins of tiers such as good vs. very good or good vs.
Your credit score helps lenders decide if you qualify for products like credit cards and loans, and your interest rate. You are one of the 48% of Americans who had a score of 750 or above as of April 2023, according to credit scoring company FICO.
FICO says scores of 580 to 669 are considered "fair" and 740 to 799 are considered "very good." Anything at 800 or above is considered "exceptional." NerdWallet's credit score bands, used for general guidance, are pictured above.
Introduction: My name is Allyn Kozey, I am a outstanding, colorful, adventurous, encouraging, zealous, tender, helpful person who loves writing and wants to share my knowledge and understanding with you.
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