If you’ve earned a 750-plus credit score—well done. That demonstrates to lenders that you are an exceptional borrower and puts you well above the average score of U.S. consumers. In addition to bragging rights, a 750-plus credit score can qualify you for better offers and faster approvals when you apply for new credit. Here’s what you need to know to make the most of that 750-plus credit score.
What is Credit Score Basics?
First, a refresher on credit scores. A credit score is a three-digit number that summarizes your credit risk, based on your credit data. The most common credit score is the FICO score, which is calculated using five main categories of credit data from your credit reports. Here they are, along with what percent of the score they account for.
Payment History (35%). Whether you’ve paid your past bills on time
Amounts Owed (30%). How much credit and how many loans you’re using
Length of Credit History (15%). How long you’ve had credit
Credit Mix (10%). The types of credit you’ve had (e.g., mortgage, auto loan, credit cards)
New Credit (10%). Frequency of credit inquiries and new account openings
The Benefits of a 750-Plus Credit Score
You’ve worked hard for that 750-plus credit score, so be sure you make the most of it. In addition to bragging rights, your exceptional credit score sets you up to take advantage of several financial benefits, including:
You’re more likely to be approved when you apply for new credit.
Keep in mind that your credit score indicates your credit-worthiness and how likely you are to repay money that you borrow. If you have a high credit score, lenders will view you as less risky, which means you’re more likely to be approved for a line of credit or loan.
You’ll qualify for lower interest rates and higher credit limits.
With a 750-plus credit score, you are considered very likely to repay your debts, so lenders can offer you better deals. This is true whether you’re getting a mortgage, an auto loan, or trying to score a better interest rate on your credit card.
The Bottom Line
Your credit score affects your ability to get credit and the terms lenders will offer, such as the interest rate on a mortgage. Your score can also impact your job opportunities (employers often run credit checks) and housing options (landlords also run credit checks). Your score can even be factored into the rate you pay for auto and homeowner’s insurance. Because this one number is so important, it’s a good idea to keep track of it—and take steps to improve it, if necessary.
