Its an age-old question we receive, and to answer it requires that we start with the basics: What is the definition of a credit score, anyway?
Generally speaking, a credit score is a three-digit number ranging from 300 to 850. Credit scores are calculated using information in your credit report. Your payment history, the amount of debt you have and the length of your credit history are some of the factors that make up your credit scores.
There are many different credit scoring models, or ways of calculating credit scores. Credit scores are used by potential lenders and creditors, such as: banks, credit card companies or car dealerships, as one factor when deciding whether to offer you credit, like a loan or credit card. Credit scores help creditors determine how likely you are to pay back money they lend.
Its important to remember that everyones financial and credit situation is different, and theres no credit score “magic number” that guarantees better loan rates and terms.
Having a credit score of 771 puts you in rarefied territory when it comes to your credit standing. But is a score of 771 considered good or excellent when it comes to your overall credit health? In this article, we’ll take an in-depth look at what a credit score of 771 means and how it stacks up against other scores.
What is a Credit Score?
Before diving into the 771 credit score specifically, it helps to understand what a credit score is and why it matters. Your credit score is a three-digit number that is calculated based on information in your credit report. It provides a snapshot of your creditworthiness and allows lenders to quickly assess how much of a credit risk you pose.
The most commonly used credit scoring model is the FICO score which ranges from 300 to 850. In general the higher your FICO score, the lower your perceived credit risk to lenders. Other credit scoring models exist as well, like VantageScore, but FICO remains the most widely used model by lenders.
Your credit score is determined based on these five main factors
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Payment history – Are you making on-time payments for your credit accounts? Late payments can negatively impact your score.
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Credit utilization – What percentage of your total available credit are you using? Higher utilization can lower your score
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Credit history length – How long have you been managing credit accounts? A longer history is better for your score.
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Credit mix – Do you have experience managing different types of credit like credit cards and loans? Mix can positively influence your score.
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New credit – Have you opened several new credit accounts recently? Too many new accounts at once can lower your score temporarily.
Understanding these key influencers of your credit score empowers you to take actions to build and protect it over time.
What Does a 771 Credit Score Mean?
A credit score of 771 is an excellent score by any standard. According to Experian data, a score of 771 falls in the “very good” credit score tier, which ranges from 740-799. Only 25% of consumers have a credit score this high.
Here’s how a 771 credit score stacks up:
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It’s 57 points higher than the average FICO score of 714.
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It places in the top 15% of all scores.
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It’s considered “very good” by Experian.
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It’s on the cusp of reaching “exceptional” status (a score of 800+).
So a 771 credit score demonstrates that you have a proven track record of responsible credit management. By paying bills on time, keeping credit utilization low, and avoiding negative marks on your credit history, you’ve built remarkable credit for yourself over time.
Credit Score Ranges and Where 771 Falls
To better understand the significance of a 771 credit score, it helps to see how it fits within the overall credit score ranges.
Here is a breakdown of the different credit tiers according to Experian:
- Exceptional: 800-850
- Very Good: 740-799
- Good: 670-739
- Fair: 580-669
- Poor: 300-579
As you can see, a 771 score falls into the “very good” category, just 29 points shy of reaching exceptional status.
Only 1% of consumers have exceptional credit, while just under 15% have very good credit. So scoring 771+ definitely puts you ahead of the curve when it comes to your credit standing.
The Benefits of a 771 Credit Score
What are the real world benefits of having a 771 credit score versus other scores? Here are some of the key advantages you can expect:
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Better loan terms: You’ll qualify for prime lending rates on mortgages, auto loans, and other financing. This means lower interest rates that save you significantly over the life of the loan.
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Improved approval odds: Lenders perceive you as lower risk, so you’re more likely to be approved for new credit and get the top credit limits.
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More access to credit: Banks want your business, so you’ll get more offers for credit cards, loans, and lines of credit. This gives you more financial flexibility.
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Premium credit card rewards: You may qualify for elite credit cards with lucrative ongoing rewards and luxury travel perks.
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Lower insurance rates: Insurers correlate creditworthiness with risk levels, so you may pay less for coverage.
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Employment opportunities: Some employers check credit scores as part of the hiring process, giving you an edge.
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Higher credit limits: Issuers often grant higher limits to consumers with excellent credit, providing extra purchasing power.
As you can see, building your credit score above 770 opens up a number of rewards that can benefit your finances and lifestyle in tangible ways.
How to Maintain or Improve a 771 Credit Score
If you currently have a 771 credit score, maintaining it takes consistency and vigilance. Here are some tips for protecting your excellent credit standing:
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Always pay bills on time to avoid late payments. Set up autopay if needed.
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Keep credit utilization very low, at 30% or less if possible.
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Be cautious about applying for too much new credit at once. Space it out.
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Hold on to your old credit accounts to preserve credit history length.
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Monitor your reports regularly for errors or suspicious activity.
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Consider credit monitoring or identity theft services to catch problems early.
If you don’t quite have a 771 score yet, discipline and patience over time can get you there. Here are some smart ways to continue improving your credit:
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Pay down balances to lower your credit utilization. Consider debt consolidation.
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Become an authorized user on someone else’s old credit account if possible.
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Mix up your credit types by occasionally opening new accounts responsibly.
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Limit hard inquiries on your reports by spacing out applications.
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Address any credit report errors with the bureaus to boost your score.
No matter what your starting score, maintaining healthy credit habits will serve you well down the road. Just stay focused on those key factors within your control.
Is a 771 Credit Score Considered Good or Excellent?
Given its placement in the top 15% of consumers, a 771 credit score is undoubtedly considered excellent by lending standards. It demonstrates a longstanding commitment to borrowing wisely and making payments on time.
While a 771 score already provides access to prime rates and approval odds, reaching into the 800+ tier can unlock even more exclusive rewards and savings over time. But even at 771, your credit standing is admirable.
The key is to stick to responsible habits and protect your 771 score diligently. Avoid complacency. Continue monitoring your credit, looking for reporting errors, signs of fraud, or unhealthy patterns creeping in that could jeopardize your hard-earned excellent credit.
Maintaining pristine credit takes work, but the financial benefits over your lifetime make it a worthwhile endeavor. By understanding credit scores and wisely managing each component, you can achieve and sustain excellent credit that serves you well as life progresses.
What are credit score ranges and what is a good credit score?
Credit score ranges vary depending on the scoring model. Higher credit scores mean you have demonstrated responsible credit behavior in the past, which may make potential lenders and creditors more confident when evaluating a request for credit. Most credit score ranges are similar to the following:
- 800 to 850: Excellent Credit Score Individuals in this range are considered to be low-risk borrowers. They may have an easier time securing a loan than borrowers with lower scores.
- 740 to 799: Very Good Credit Score Individuals in this range have demonstrated a history of positive credit behavior and may have an easier time being approved for additional credit.
- 670 to 739: Good Credit Score Lenders generally view those with credit scores of 670 and up as acceptable or lower-risk borrowers.
- 580 to 669: Fair Credit Score Individuals in this category are often considered “subprime” borrowers. Lenders may consider them higher-risk, and they may have trouble qualifying for new credit.
- 300 to 579: Poor Credit Score Individuals in this range often have difficulty being approved for new credit. If you find yourself in the poor category, its likely youll need to take steps to improve your credit scores before you can secure any new credit.
Lenders use credit scores along with a variety of other types of information — such as information you provide on the credit application (for example: income, how long you have lived at your residence, and other banking relationships you may have) in their loan evaluation process. Different lenders have different criteria when it comes to granting credit. That means the credit scores they accept may vary depending on their criteria.
Score providers, such as the three nationwide credit reporting agencies (NCRAs)—Equifax®, Experian® and TransUnion®—and companies like FICO® use different types of credit scoring models and may use different information to calculate credit scores. Therefore, credit scores may be different from each other. Not all creditors and lenders report to all credit score providers.
What is the average credit score?
As of January 2024 the average credit score in the United States was 701. While this is the average credit score, it falls in the Fair Range.
Is 771 A Good Credit Score? – CreditGuide360.com
FAQ
How rare is a 771 credit score?
Your score falls within the range of scores, from 740 to 799, that is considered Very Good. A 771 FICO® Score is above the average credit score. Consumers in this range may qualify for better interest rates from lenders. 25% of all consumers have FICO® Scores in the Very Good range.
Can I buy a house with a 771 credit score?
“A homeowner can secure solid mortgage terms with a credit score of 700 or higher,” he adds. “740 is typically the score necessary to qualify for the ‘best’ rate, but there are products and programs out there that will improve interest rates for FICO credit scores above 760 or 780.”
Can I buy a car with a 771 credit score?
Usually, higher scores mean lower interest rates on loans. According to Experian, a target credit score of 661 or above should get you a new-car loan with an annual percentage rate of around 6.70% or better, or a used-car loan around 9.06% or lower. Superprime: 781-850.
How rare is an 800 credit score?
An 800 credit score is relatively rare, with approximately 23% of Americans achieving this “exceptional” FICO score range (800-850), according to The Motley Fool.
Is a credit score of 771 good?
A credit score of 771 is Very Good, but it could be even better. Boosting your score into the Exceptional range could help you qualify for the very best interest rates and terms. A great starting point is to get your free credit report from Experian and check your credit score to find out the specific factors that impact your score the most.
Can you get a car loan with a 771 credit score?
You should be able to get approved for a car loan with a 771 credit score, considering that roughly 80% of all auto loans go to people with credit scores below 780.
Can I get a student loan with a 771 credit score?
Student loans are relatively easy to obtain with a 771 credit score, as approximately 90% of them are granted to applicants with a lower credit score (below 780).
Do people with a 771 credit score pay their bills on time?
People with a credit score of 771 typically have late payments on just 22% of their credit reports. People with Very Good credit scores, like you, are attractive customers to banks and credit card issuers, who typically offer borrowers like you better-than-average lending terms.
What is the average utilization rate for a 771 credit score?
The average credit utilization rate for consumers with a FICO ® credit score of 771 is 23.7%. To determine how to improve your credit score, check your FICO ® Score and you’ll receive information about ways to boost your score based on specific information in your credit file.
Does free credit monitoring help a 771 credit score?
Free credit monitoring won’t prevent fraud or credit report errors from affecting a 771 credit score, but it will ensure that you are notified immediately if they occur.