Is a 742 Credit Score Good on the Equifax Credit Reporting Agency Scale?

Your credit score is one of the most important numbers in your financial life. It can determine whether you qualify for loans and credit cards, and if so, what interest rates and terms you’ll get. One late payment can knock your score down significantly, while years of responsible credit usage helps raise your score. So where does a 742 credit score land you with Equifax, one of the three major credit bureaus? Let’s take a closer look.

What is Equifax and What Do They Do?

Equifax is one of the three main credit reporting agencies (CRAs) in the United States along with Experian and TransUnion. These CRAs collect data on how consumers manage credit, including your payment history, outstanding balances, credit applications and more. They compile this data into credit reports.

Lenders buy these credit reports and use the information to make decisions about whether to approve you for credit and what terms to offer. The CRAs also calculate your credit scores using the data in your credit reports. Equifax uses the Equifax Credit Score model, ranging from 280 to 850 like most other scoring models.

What is Considered a Good Credit Score?

The scale for the Equifax Credit Score and most other models runs from 300 to 850. In general:

• Scores above 800 are excellent
• 740 to 799 is very good
• 670 to 739 is good
• 580 to 669 is fair
• Below 580 is considered poor

So a score of 742 with Equifax puts you in the very good category, better than 65% of consumers. This means you have a proven track record of responsible credit usage that makes you a low-risk borrower in the eyes of lenders

Is a 742 Equifax Score Good Enough for Loan Approval?

A 742 Equifax credit score is good enough to qualify for most loans and credit cards, often with excellent terms. Here are the credit requirements you can typically expect with a 742 score:

• Mortgages – Easily qualify for most conventional mortgages. May get best rates reserved for scores 750+ with some lenders.

• Auto Loans – Probably get approved for lowest auto loan rates from many lenders.

• Personal Loans – High likelihood of approval for a personal loan from most lenders, often with the best advertised rates.

• Credit Cards – Qualify for most rewards and 0% intro APR credit card offers

• Student Loans – Meet requirements for federal direct student loans as well as private student loan options.

While every lender has its own standards, a very good 742 Equifax score means you should have your choice of quality lending options. Shop around for the best offers.

How Does a 742 Equifax Score Compare to Other Credit Scores?

The major credit scoring models have similar score ranges and criteria, so a 742 generally indicates very good credit across the board. But scores can vary between models:

• Equifax Credit Score (280-850 scale)

• FICO Score (300-850 scale)

• VantageScore (300-850 scale)

For example, your FICO score may be 730 while your Equifax score is 742. This small difference is normal. As long as your scores from the different CRAs are all in the good to excellent range, any variability won’t impact your ability to get approved and land competitive rates.

Tips to Raise Your Equifax Credit Score from 742 to 750+

While a 742 Equifax credit score is great, there’s still room for improvement. Here are some tips to raise your score into the 750+ range for excellent credit:

• Lower credit card balances – Keep balances below 10% of the credit limit on each card.

• Pay bills early – Set payment reminders to avoid ever being late.

• Limit credit applications – Too many hard inquiries in a short timeframe can lower scores.

• Correct errors – Dispute any mistakes on your Equifax credit report.

• Monitor credit – Stay on top of your Equifax credit report and FICO or VantageScore.

• Ask for credit limit increases – This keeps credit utilization low as your balances grow.

The higher you can push your Equifax credit score now, the better offers you can get from lenders when you need to borrow money down the road.

The Takeaway – 742 is a Very Strong Equifax Credit Score

A 742 credit score with Equifax indicates to lenders that you are a very low credit risk based on your long history of responsible borrowing and on-time payments. While it’s just short of an excellent score, a 742 Equifax score qualifies you for prime rates on loans and credit cards from most institutions. Stay diligent, keep improving your credit, and enjoy the financial benefits of maintaining very good credit health.