Is 750 a Good Credit Score? | Yes it is and Here are the Main Reasons Why!
Is 750 a Good Credit Score?
Credit scores fall into ‘categories’ that tell lenders if your credit is good.
While it’s a little more complicated than that, it’s the basic gist of it.
When you’re talking about a specific credit score, you must determine where it falls in the credit score categories.
Many people wonder, is 750 a good FICO credit score’?
It is, but let’s look at what it means.
And to be 100% clear, when we are talking about a credit score, we are referring to a FICO score.
At 750, you have above-average credit.
According to CNBC, the National median average FICO score is 706.
Why is 750 considered a good score?
History shows that consumers with a 750 credit score or higher rarely, if ever, default on their loans.
Of course, there’s always a risk of adverse events causing you to default, but overall a 750-credit score is a very trusted score from a lenders’ perspective.
A credit score of 750 or higher typically means you pay your bills on time and you don’t overextend your credit.
You Get the Best Terms
As far as lenders are concerned, a 750 credit score is very good.
Most consumers with a 750 score get the best interest rates, terms, and the lowest closing costs. There’s not much of a difference of a consumer with an 800 credit score versus a 750 because they’re both considered lower risk.
In the eyes of the lenders, it does not too get much better than a 750. Even though the highest FICO score in the model is 850.
According to Investopedia, just over 20% of consumers are over an 800 Fico score.
FICO scores range from 300 to 850
Here is the Investopedia breakdown.
Under 500 – 4%
500 – 549 – 7%
50-599 – 8%
700-749 – 16%
750- 799 – 20%
800-850 – 20%
Need help or do you want to expedite the process of raising your score? Try Sky Blue!
You Have to Work Hard to Keep your 750 Credit Score
Just because you have a 750 credit score doesn’t mean you’ll keep it. You must work diligently to ensure it doesn’t drop. Here are a few things you must do:
Keep your utilization ratios down – Your utilization ratio the amount of your outstanding credit that you are using versus your available credit line. Anything over 30% drops your credit score. If you have a $1,000 credit line, that means keep no more than $300 outstanding balance at once. 15% is actually ideal and is the average of consumers that are in the 750 Fico score range. Keep your balances low, or try paying them off in full when you can to keep your credit score maximized.
Set up automatic payments – Don’t risk making a late payment, even as a mistake. One 30-day late payment can drop your score as much as 100 points, putting all of the hard work of getting a great credit score behind you. Set up automatic payments and take the thinking (and human error) out of it. :)
Keep your types of credit mixed – The credit bureaus like it when you have a mixture of credit. For example, if you have all revolving debt (credit cards), you’re a higher risk. You have a lot of credit at your disposal and could easily get in over your head fast. If you have a mixture of installment (fixed debt) and revolving debt, you pose less of a risk and your credit score will reflect that favorably.
Check your credit reports often – Human error and identity theft or fraud can ruin your credit score. That’s why checking your credit reports at least once every year is important. You can get a free copy of your credit report from each of the three bureaus here. Consider pulling one report every four months so you check your report’s accuracy three times a year.
Settle liens quickly – Liens are public records and affect your credit report negatively. If you end up with a lien, even one due to circumstances you didn’t realize, settle it quickly. The faster you either set up a payment arrangement or pay the debt off in full, the less it may affect your credit score.
Get any other negative items removed – If something derogatory does happen to pop up, dispute it immediately. Or if you have had stubborn negative items lingering on your report for some time, dispute them immediately. You can use our recommended credit repair service Sky Blue Credit or you can search our top 6 choices of the best credit repair companies. Or if you want to try to tackle the job yourself, see our tips and tricks on how to raise your credit score yourself.
So in summation, is a 750 credit score good?
It certainly is, but there’s always room for improvement. Don’t get so comfortable or confident in your score that you don’t work hard to keep it high. If you can get your score higher than 750, you’ll get the best rates, and you will stay in that ‘great credit score category’!
Remember, the higher your credit score is, the more it falls with even one mistake. Making late payments have and having high balances has the largest effect on your credit score, causing you to lose as much as 100 points and making you start over again.
Be mindful of your credit habits, check for mistakes or theft, and continually work on your credit. You worked hard to get to that 750 credit score, now it’s time to keep it there.
If you need help, our credit repair company recommendations can help you to get on a fast road to repairing your credit and raising your score!
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