For a score with a range of 300 to 850, a credit score of 670 to 739 is considered good. Credit scores of 740 and above are very good while 800 and higher are excellent.
For credit scores that range from 300 to 850, a credit score in the mid to high 600s or above is generally considered good. A score in the high 700s or 800s is considered excellent. About a third of consumers have FICO® ScoresÎ that fall between 600 and 750âand an additional 48% have a higher score. In 2023, the average FICO® Score in the U. S. was 715.
Lenders use their own criteria for deciding whom to lend to and at what rates. But a higher credit score can generally help you qualify for a credit card or loan with a lower interest rate and better terms. The most common credit scores are the FICO® Score and the VantageScore® Credit Score. Their ranges are a little different, but their scoring factors are the same.
A 740 FICO score is considered to be a “good” or “very good” credit score. With a score of 740, you will likely have access to favorable interest rates and terms on loans, credit cards, mortgages and other lines of credit While there is room for improvement to reach an “exceptional” credit score, a 740 FICO provides many borrowing options.
What is a Good FICO Score?
FICO credit scores range from 300 to 850. The higher the score, the lower the perceived credit risk. According to FICO, here are the score ranges:
- 800-850: Exceptional
- 740-799: Very Good
- 670-739: Good
- 580-669: Fair
- 300-579: Very Poor
A FICO score of 740 is in the “very good” range. It is much higher than the average credit score of around 710, which means you should be able to get most loans and credit cards with good interest rates.
Credit Card and Loan Approval Odds
Based on data from FICO, here are the odds of approval for credit cards and loans at different score ranges:
- Score Above 760: Nearly guaranteed approval for credit cards and loans at the best rates
- 740-759: High likelihood of approval for most credit cards and loans at very good rates
- 720-739: Decent approval odds for credit cards and loans at average rates
- 700-719: Lower approval odds, may need to shop around for favorable rates
- 660-699: Difficult getting approved, may need a cosigner or collateral
So, if you have a score of 740, you have a very good chance of being approved for most credit products. You can probably get approved for top rewards credit cards, 0% intro APR credit card offers, low-rate auto loans, and competitive mortgage rates.
Credit Card Rewards and Features
A 740 FICO score gives you access to premium travel and cash back credit card rewards. For example, you can likely qualify for cards like:
- Chase Sapphire Preferred: 60,000 point signup bonus worth $750 in travel
- Capital One Venture: 50,000 mile signup bonus worth $500 in travel
- Citi Double Cash: 2% back on all purchases (1% when you buy, 1% when you pay it off)
In addition, 740 is usually high enough to get cards with great features like:
- Long 0% intro APR periods for purchases and balance transfers
- No foreign transaction fees
- Airports lounge access
- Travel and purchase protections
So if you have a Very Good credit score of 740, you can get a lot of great credit card terms and benefits.
How to Get the Lowest Interest Rates
While a 740 FICO provides access to competitive rates, you can optimize and get the lowest possible rates by:
- Checking for rate mismatches. Shop around and make sure you get the best rate your score qualifies for.
- Increasing your credit score. Get your score over 760 to qualify for the very lowest rates.
- Lowering your debt-to-income ratio. Lenders look at your total monthly debt payments relative to income.
- Having a down payment for big loans. The higher the down payment, the lower the rate.
Putting extra effort into these areas when applying for a mortgage, auto loan, or large personal loan can help you get the rock-bottom interest rates.
Is 740 a Good Credit Score for All Ages?
A 740 credit score is considered good at any age. However, average scores do tend to increase with age, according to FICO data:
- 18-29: 680 average score
- 30-39: 691 average score
- 40-49: 704 average score
- 50-59: 721 average score
- 60+: 752 average score
So while a 740 score beats the average for younger borrowers, it is slightly below average for those 60+. The important thing is that 740 is a Very Good score regardless of your age group.
How to Raise Your Credit Score from 740
You can get great loan deals with a credit score of 740, but you can raise it even more to reach Exceptional credit status:
- Lower credit utilization. Keep balances low relative to limits.
- Never miss a payment. Payment history is a major factor.
- Limit new credit applications. Too many dings your scores temporarily.
- Correct errors on your credit reports. Dispute any inaccurate information.
- Build credit history. Longer history helps as accounts age.
With time and consistently responsible credit habits, you can inch up your Very Good score of 740. Getting above 760 has the biggest impact on opening up the very best approval odds and interest rates.
Is a 740 Credit Score Good for a Mortgage?
A 740 credit score is considered Very Good for a mortgage. According to FICO, over 60% of approved mortgages go to individuals with scores of 740 or above. This score provides access to competitive interest rates from most lenders.
However, it’s ideal to get your score to 760 or higher before applying for a mortgage to guarantee the lowest rates. Improving from 740 to 760 could potentially save thousands of dollars in interest over the life of the loan.
FICO’s Different Credit Scores
In 1989, FICO became the first company to create credit scoring models based on consumer credit reports. Although recent FICO® Score versions share a common name, such as FICO® Score 8, FICO creates different versions of the models for each credit bureau.
There are three general types of consumer FICO® Scores:
- ® Base Scores: These scores are made for all types of lenders and range from 300 to 850. The scores try to guess how likely it is that a person will not pay any kind of credit bill on time.
- Specialized FICO® Scores for Each Industry: FICO makes auto scores and bankcard scores just for auto lenders and card issuers. The goal of industry scores is to guess how likely it is that a customer will fall behind on a certain type of account. Scores range from 250 to 900.
- FICO® Scores that use different data: FICO has models, like the UltraFICO® and FICO XD scores, that can use different credit data. Both scores range from 300 to 850. The first group can look at linking information from deposit accounts, and the second group can find people by using non-traditional payment history from other databases, like your phone or utility bills.
FICO industry-specific scores are added to a base FICO® Score, and FICO releases new sets of scores every so often. The FICO® Score 10 Suite, for instance, has a base FICO® Score 10, a FICO® Score 10 T (which looks at trended data), and scores that are specific to different industries.
Why Having a Good Credit Score Is Important
Having good credit can make achieving your goals easier. That one thing could mean the difference between getting a home mortgage or car loan and not getting one. It can also directly impact how much youll have to pay in interest or fees if youre approved.
For example, the difference between taking out a 30-year, fixed-rate $350,000 mortgage with a 620 FICO® Score and a 700 FICO® Score could be $138.58 a month. Thats extra money you could be putting toward your savings or other financial goals. Over the lifetime of the loan, having the better score would save you $49,889 in interest payments.
Additionally, credit scores can impact non-lending decisions, such as whether a landlord will agree to rent you an apartment.
Your credit reports can also impact you in other ways. Some employers may review your credit reports (but not your credit scores) before making a hiring or promotion decision. In most states, insurance companies may use credit-based insurance scores to help determine your premiums for auto, home and life insurance.
| FICO® Score | Interest Rate, 30-Year Fixed-Rate Mortgage | Monthly Payment | Total Interest Cost |
|---|---|---|---|
| 620 | 7.71% | $2,806.11 | $549,199 |
| 700 | 7.13% | $2,667.53 | $499,310 |
| 840 | 6.69% | $2,564.49 | $462,214 |
Source: Curinos LLC, December 6, 2024; assumes a $350,000 mortgage and 30-day rate-lock period
Learn more: Facts About Credit You May Not Know
What Can I Do With A 740 Credit Score? – CreditGuide360.com
FAQ
What is a 740 FICO ® score?
Your FICO ® Score ☉ falls within a range, from 740 to 799, that may be considered Very Good. A 740 FICO ® Score is above the average credit score. Borrowers with scores in the Very Good range typically qualify for lenders’ better interest rates and product offers. 25% of all consumers have FICO ® Scores in the Very Good range.
Is 740 a good credit score?
A 740 credit score is a good credit score. Scores between 700 and 749 are considered “good credit,” and scores between 750 and 850 are considered “excellent credit.” People with scores this high are likely to be able to get the best mortgages, auto loans, credit cards, and other loans. Credit Rating: 740 is a good credit score.
Do people with a 740 credit score pay their bills on time?
Credit score of 740 means that people usually pay their bills on time; in fact, late payments only show up on 204 percent of those people’s credit reports. Banks and credit card companies like people like you who have Very Good credit scores because they are good customers. They usually offer better-than-average loan terms to people like you.
What are the best personal loans for a 740 credit score?
The best personal loans for a 740 credit score are from SoFi, LightStream and Barclays. A score of 740 is in the good credit range, and people with this score should have a decent shot at qualifying for most personal loans on the market. In fact, it’s uncommon for personal loan providers to have a minimum credit score requirement higher than 700.
What is the average utilization rate for a 740 credit score?
Among consumers with FICO ® credit scores of 740, the average utilization rate is 18.5%. The best way to determine how to improve your credit score is to check your FICO ® Score. Along with your score, you’ll receive information about ways you can boost your score, based on specific information in your credit file.
Can I get a car loan with a 740 credit score?
You should be able to get approved for a decent car loan with a 740 credit score, considering that more than 60% of all auto loans go to people with credit scores below 740. Still, it’s important to compare your auto loan options carefully if you want to get a low APR.
What will a 740 credit score get you?
A 740 FICO® Score is above the average credit score. Borrowers with scores in the Very Good range typically qualify for lenders’ better interest rates and product offers. 25% of all consumers have FICO® Scores in the Very Good range.
What is an excellent FICO credit score?
Quick Answer. For a score with a range of 300 to 850, a credit score of 670 to 739 is considered good. Credit scores of 740 and above are very good while 800 and higher are excellent. For credit scores that range from 300 to 850, a credit score in the mid to high 600s or above is generally considered good.
Can I buy a house with a 740 credit score?
It’s solidly in the “excellent” credit range, typically defined as 740-850. This score qualifies you for the absolute best loan terms offered by any lender.Aug 29, 2024
What percentage of people have a credit score over 740?
Twenty-four percent have a FICO® Score between 750 and 799, making the “very good” bracket. Data source: FICO (2024). Nearly half of Americans score between 750 and 850, in the very good to exceptional range, while 25% of Americans have a score between 300 and 649, the poor to fair credit score range.