756 Credit Score: What You Need to Know (2024)

While there is no formal definition of what constitutes a "very good" credit score, most experts would categorize a 756 FICO Score within this range. Such a score is considered above average and places you in an excellent position to secure favorable mortgage and auto loan rates. Additionally, it facilitates qualification for personal loans and home equity lines of credit (HELOCs) and allows you to take advantage of the best credit card offers.

Keeping this in mind, let's delve into a comprehensive breakdown of what your 756 credit score signifies for you and various types of lenders. We'll also explore steps to not only maintain your score within the "very good" range but also enhance it to reach the "excellent" level.

What does a 756 credit score mean?

A credit score in the 740 to 799 range, according to the Fair Isaac Company (the creators of the FICO Score), is classified as a "very good" credit score. These scores significantly surpass the U.S. consumer average and signal to lenders your high likelihood of repaying borrowed funds. According to Wonder, individuals with scores in the 780-799 range have an estimated default probability of just 0.8%, while those in the 700-719 credit score range exhibit a still-low 2.5% likelihood of loan default.

Although your score falls short of the "excellent" range of 800 or higher, a 756 credit score generally qualifies you for lower interest rates and top-notch credit card product offers.

Purchasing a home with a 756 credit score

Several factors, such as your employment status, assets, debt-to-income ratio, and the type of home you intend to purchase, determine the interest rate you'll secure on a mortgage. Nonetheless, your credit score holds significant importance within this equation, and a 756 credit score should secure an excellent mortgage rate for you.

As of November 1, 2022, the average mortgage APR in the U.S. hovered around 7.1%. Borrowers with a 760 FICO Score or higher enjoyed an average APR of 6.61%, whereas those in the 700-759 range encountered an average APR of 6.83%. It's important to note that multiple factors influence a mortgage lender's decision, but a denied application or a rate above the norm likely won't be due to your credit score.

Buying a car with a 756 credit score

Your very good credit score can have a substantial impact on the interest rate you'll be offered when applying for an auto loan.

As of November 2022, the average APR for a 60-month new auto loan in the United States was 5.59% for borrowers with FICO Scores of 720 or higher. In contrast, the average borrower in the 660-689 credit score range (generally considered "good" credit) encountered an APR of 9.16%. This translates to over $4,000 in additional interest on a $40,000 new car loan. Furthermore, many auto manufacturers provide promotional financing deals, such as 0% APR for 60 months on a new vehicle. Your 756 credit score positions you excellently to qualify for these offers.

It's also worth noting that interest rates can significantly vary among lenders, even for borrowers with identical credit scores. Hence, when purchasing a home or a car, it's crucial to shop around for the most favorable loan terms. It's essential to recognize that the FICO credit scoring model encourages rate shopping. Any credit inquiries for the same type of loan within a short period (typically two weeks) will count as a single inquiry for scoring purposes, thereby not adversely affecting your credit score.

Obtaining a credit card with a 756 credit score

In general, a credit score like yours is sufficient to qualify for nearly any credit card offer in the market, including the best rewards credit cards and balance transfer offers. However, it's vital to understand that your credit score is just one piece of the puzzle companies consider.

For instance, some credit card companies may automatically reject applicants who have opened too many new credit accounts within the past year, irrespective of their credit score. Factors like income and employment also play a role, and excessive outstanding debt on other credit lines could lead to rejection, even with a high credit score.

Securing a personal loan with a 756 credit score

First and foremost, there is no personal lender in the market that requires a credit score higher than your 756, making it highly unlikely for you to face rejection for a personal loan due to your score. In fact, your 756 credit score positions you excellently to qualify for the most competitive rates offered by most personal lenders.

Nevertheless, it's crucial to bear in mind that your credit score is just one aspect of the application. For instance, even if you have an excellent credit score, excessive outstanding debts can lead to a rejection.

How can I elevate my credit score even further?

With a 756 credit score, you are a considerable distance away from having poor credit. You can typically qualify for various types of loans and secure favorable interest rates and terms. However, you have yet to attain the elite status of "exceptional" credit, typically represented by FICO Scores of 800 or higher. If you aim to enhance your credit score and join the 800+ club, here are a few strategies that can assist you in achieving this:

• Maintain low credit utilization: FICO High Achievers, with scores above 795, typically utilize only 7% of their available credit.
• Apply for new credit judiciously: Limit the number of hard credit inquiries within the past 12 months, as they can have an adverse impact on your score. Many lenders allow rate checking for loans without initiating a hard credit pull (known as a soft inquiry), and this is often specified by the lender.
• Allow your credit to age: An extended average age of revolving credit accounts significantly contributes to a higher credit score. The length of your credit history constitutes 15% of your FICO score, making patience an effective strategy for building a stronger credit report.
• Ensure timely bill payments: Maintaining a flawless payment history is imperative. While it's not uncommon for individuals in the 740-799 range, like you, to have a late payment or two on their credit history, it is nearly non-existent for consumers with scores of 800 or higher.