Do you have a 740 credit score? First of all, congratulations.
Not everyone can achieve a 740 score. According to FICO, a score between 740 to 790 is an excellent credit score.
You might be thinking about what the FICO score is? Is it important? If it is, then what are their benefits? Just be with us and find out all answers to the questions.
740 Credit Score: Overview
Well, FICO is an analytic data company, the credit score of FICO is used worldwide. However, there are also other credit scores like Experian, Transunion, and so on. But the score which almost all lenders use is the FICO credit score.
FICO Credit Score
|Up to 580||Poor Score|
|581 to 669||Average Score|
|670 to 739||Good Score|
|740 to 799||Very Good Score|
|Above 799||Outstanding Score|
Does Credit Card Score Matter? Purpose of A Credit Score
A credit card score is not something you can ignore. Your credit card score signifies the history of your credit card.
Yes, you read it accurately; your credit card score is the history. A history that every lender wants to know before giving a loan. No lender provides money to any person without assurance.
Whenever a person asks for a loan, a lender checks the credit score. This score convinces them whether a borrower is a trustworthy person or not.
The credit score signifies your previous payment history, accounts, credit utilization rate, available balance, and length of your credit card history. If your record is good, then your credit score will be high. And high credit card scores mean you’re trustworthy for the loan.
Building Your Credit
After reading the relevancy of credit score, the question might be ringing in your mind that “How can you add more points to the credit score”? Here’s the strategy that can help you to improve your credit score.
- Pay all of your bills on time – no late payment.
- Pay your debt.
- Ask the bank for a higher credit limit.
- Use the credit monitoring feature and watch your credit card score.
- An old credit card account is better for a good score.
- Keep your credit usage low (below 30%).
One extra tip, never apply for a new card when you have a goal to improve your credit score. Otherwise, you’ll end up with a hard inquiry from the bank.
Is A 740 Credit Score Good?
A credit card score is a three-digit number between 300 to above 850. A higher score is considered good, and the lowest score is not acceptable by lenders.
If you’re thinking, “is 740 a good credit score,” then without a doubt, yes. Also, if you’ve scored above 700, be happy because it’s a good score and above 800 is exceptional.
However, if you’ve scored below, then it might be difficult for you to get a loan. Though a score between 581 to 699 is rated average. Still, it is not a good score.
Moving Past Fair Credit Score
The credit score is your history of credit cards. If the record is good, you pay all of your dues and bills on time and follow the strategy we’ve shared with you in the “Building your Credit” heading. Then, you’ll surely get a good credit score.
In case your credit score is not good and comes in the category of average and poor. Then check the credit report and find out the reasons that bring you down to a low score. After that, make a plan, and don’t make the previous mistake again.
One thing to keep in mind is that your credit score will not go high in some weeks. It’s a lengthy procedure. So, be patient and make sure that you’re on the right path.
Can I Get A Car Loan With A 740 Credit Score?
Getting a car loan is not improbable; one can get a loan on a 612 or 600 score. The difference is you’ll not get it quickly. Your credit card score is something that can create a good impression that you’re a person who’ll return the loan on time.
For example, a person who has a 560 credit score is not reliable for any mortgage. The score signifies that the person has dues or pays his previous bills late etc. It does not mean you can’t get a loan with a poor credit score. Yes, you’ll get it but with a higher APR.
At the same time, a person who has a 620 credit score (which is a good score) can get a loan but with a high APR (Annual percentage rate). Someone whose credit score comes in the category of very good (740 to 799) and exceptional (above 800) can surely get a car loan with a low APR.
The bottom line is anyone can get a loan with any score. The only difference is APR, so if your score doesn’t come in the category of good (above 670), then first work on your credit score. Afterward, apply for a loan.
Credit Card Options With 740 Credit Score
A credit score of 740 or more is excellent and helps you in numerous ways. At first, you’ll get a loan with a low APR, and then you can also qualify for other credit cards. It means other credit cards that are good and offer more perks than the current one.
With those good cards, you can get enticing rewards like cash back, travel prizes, accident insurance while traveling, cashback on dining and-so-forth.
Though your credit score plays a significant role, you can get a credit card that offers many enticing perks with a good credit score. Still, it’s just an essential part of the puzzle. Some other things also matter, like your income, job status, or business.
However, you can check the requirements of new credit cards on Google. You are good to go if you meet all conditions (other than a good credit score).
Personal Loans With 740 Credit Scores
There are plenty of loans you’ll get with a good credit score, whether a personal loan, car loan, or any other. Your history (credit score) is beneficial for getting any loan with less interest rate.
Following are some finance companies that are the best choices for personal loans.
|Company Name||Loan Amount||Repayment Terms||APR|
|SoFi||$5,000 to $100,000||2 to 7 years||5.99%–19.63% (with autopay)|
|PayOff||$5,000 to $40,000||2 to 5 years||5.99%–24.99%|
|LightStream||$5,000 to $100,000||24 to 144 months||2.49%–19.99% (with autopay)|
|Wells Fargo||$3,000 to $100,000||12 to 84 months||5.74%–24.49%|
|Alliant Credit Union||$1,000 to $50,000||12 to 60 months||6.24%–10.24% (with autopay)|
How to Apply For A Loan With 740 Credit Score
No doubt your credit score is a vital factor in getting a loan, but there are also some other essential parts. Remember that the requirements or eligibility criteria of all companies and banks are different.
Before you apply for a loan, make sure that you’ve read the eligibility criteria. After that, you can apply for a loan through their website or app.
Mortgage Interest Rates and 740 Credit Score
According to myFICO loan calculator data, it is the mortgage interest rate of different (FICO) credit scores for a 30-year fixed loan of $300,000.
|FICO Score||APR (Annual Percentage Rate)|
Frequently Asked Questions (FAQs)
Can I buy a car with a 740 credit score?
A 740 or above score is the perfect one. You can’t buy a car from a score, but yes, you can apply for a loan. With a good credit score of 740, you can instantly get a loan for a vehicle with a low APR.
How can I improve my credit score from 740 to 800?
Though 740 is an excellent credit score. Still, if you want to improve your score up to 800, follow this strategy.
- Pay all of your bills and debts on time.
- Don’t close your old credit cards.
- Monitor your credit card through the report.
- Keep your credit usage low (below 30%)
What credit score is excellent?
The credit score numbers vary between 300 – 850. The lowest score is considered unsatisfactory, and the high score is excellent.
- Credit score info
- Up to 580 is poor
- Above 580 to 669 is average
- 670 to 739 is fair
- 739 to 799 is good
- A credit score above 800 is exceptional
Can I buy a house with a 738 credit score?
You can apply for a house loan to buy your home. Yes, your FICO credit score of 738 makes a good impression of you to lenders, which will help you get a loan.
Hopefully, now you might have understood why a 740 credit score or above score is essential nowadays. You can get a loan quickly with a low APR because of your good credit score. If you’ve any questions regarding the “credit score 740”, you can ask in the comment section.