What Can You Do With a 750 Credit Score?
A 750 credit score is considered “very good”, and unlocks many opportunities for your personal finance.
October 24, 2022
Your creditworthiness — measured by your credit score — affects many aspects of your personal finances. From applying for a loan to the rates you receive on insurance, it really pays to have a good credit score.
But what is a “good” credit score, exactly? Is a 750 credit score good? Is 750 a good target or should you aim higher?
This guide will explore what it means to have a credit score around 750 and discuss strategies for how to get there.
What does a 750 credit score mean?
A 750 credit score means very good credit. The FICO scoring model (the most popular credit scoring model) considers scores between 740 and 799 to be “very good.”
Credit scores indicate how responsible a person has been with credit. Scores are calculated based on how an individual has used credit/loans in the past. This includes their payment history, the types of credit they have used, their current debt and more.
Credit scores range from 300 to 850, with 850 being the highest possible score. 750 is considered “very good,” while anything above 800 is typically considered “excellent.”
A 750 score is also well above average. In 2021, the average credit score was 714, according to Experian.
Curious how you stack up against your peers? Check out the average credit score by age, and the average credit score by state.
Benefits of a 750 credit score
From a practical perspective, having a credit score of 750 means that lenders will consider you to be a responsible borrower. This means that they will be more likely to offer you loans — and lower interest rates, as well. For instance, a credit score of 750 can get you a better car loan from an interest rate perspective. There are many potential benefits of having a good credit rating.
Lower interest rates: The higher your credit rating, the lower interest rates you will receive when applying for loans or credit cards. This is because borrowers with good credit are considered less risky to lend money to, compared to those with lower credit scores. Lower interest rates can produce big savings — particularly on large loans like mortgages.
Easier approval: With a high score, it’s easier to get approved for loans, credit cards and even leases. Loan approval is based on creditworthiness and income combined, so you will still need to submit proof of income — but having a good score goes a long way towards gaining approval.
Higher credit limits: Your credit score can also influence the amounts that banks are willing to lend you. With a higher score, you’ll likely enjoy access to higher borrowing limits and larger loans. Of course, your income level will also have a large impact on the credit limits you’re offered.
Lower insurance rates: Many insurance providers will access your credit report when determining your rates. A higher score indicates that you are a responsible borrower, which could lead to lower insurance rates on car insurance.
How to get a 750 credit score
Aiming to improve your credit score is always a good goal, as a bad credit score can have all sorts of negative impacts. 750 is a great score to aim for. But how do you get there?
Reaching a score of around 750 is mostly about maintaining good credit habits. This includes:
Making on-time payments every month, on all of your accounts
Keeping an eye on your credit report to monitor progress
Fixing any errors that occur on your credit report
Improving your credit mix by utilizing a variety of credit types (credit cards, loans, etc.)
Limiting the number of hard inquiries by only applying for credit when necessary
Keeping your debt level within a reasonable range. Ideally, your credit utilization should be below 30%. If you have $10,000 in credit limits, this means keeping your current credit card debt to under $3,000.
The specific path to reach 750 will be different for everyone. If you’re just starting out, it can take a long time to build credit.
For newcomers, a good place to start is getting a secured credit card or a credit builder loan. These financial products are a way to build credit from scratch.
If you already have a decent score and are working to improve it, taking steps to reduce your debt levels can help. If credit card debt is holding you back, Tally† may be able to help. Tally is an app that helps qualifying Americans consolidate credit card balances into a lower interest line of credit. Learn how Tally works here.
How to go beyond 750
Credit scores range up to 850, although an 800+ credit score is often considered the ultimate goal.
Once you hit 750+, you’ll need to dive in deeper to take a look at the credit scoring factors. This includes:
Payment history - 35%
Amounts owed - 30%
Length of credit history - 15%
Credit mix - 10%
New credit - 10%
From there, you can look at your own credit history to determine which area might be lacking.
For instance, maybe you only have student loans. In this case, your credit mix might be lacking — and signing up for a credit card could help boost your score.
Or perhaps you’re carrying too much debt and your credit utilization ratio is over 30%. In this case, taking steps to pay down debt, or raising your credit limits, can help.
To sum up, once you’re at 750+, it takes some refining and patience to reach even higher scores. In some cases, you may simply need to wait until you have a longer credit history in order to see improvements.
A 750 credit score is considered “very good,” and it means that banks will be more likely to loan you money and approve you for credit cards. Plus, good scores can lead to other perks, like lower insurance premiums.
You can do many things with a 750+ credit score — but keep in mind that other factors, like your household income, will also affect getting approved for loans.
Working on improving your credit score? Explore the rest of the Tally blog to learn much more about credit, debt payoff, and more.
†To get the benefits of a Tally line of credit, you must qualify for and accept a Tally line of credit. Based on your credit history, the APR (which is the same as your interest rate) will be between 7.90% - 29.99% per year. The APR will vary with the market based on the Prime Rate. Annual fees range from $0 - $300.