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 two main types of credit scores, the FICO® Score and VantageScore® credit scores, vary slightly in their ranges but have similar scoring factors.
Your credit score is one of the most important numbers in your financial life It essentially represents your creditworthiness and can impact everything from loan approvals to interest rates So where does a 745 credit score stand? Is it good or bad? Let’s take a closer look.
What is a Credit Score?
A credit score is a three-digit number calculated based on information in your credit report. It gives lenders a quick snapshot of your creditworthiness.
The most commonly used credit scoring models are:
- FICO® Score – Ranges from 300 to 850
- VantageScore® – Ranges from 300 to 850
Higher scores indicate lower credit risk. So the higher your score, the better.
What is Considered a Good Credit Score?
Credit score ranges help lenders categorize borrowers according to their default risk. While thresholds vary between models, here are the general credit tiers:
FICO® Scores
- 800-850: Exceptional
- 740-799: Very Good
- 670-739: Good
- 580-669: Fair
- 300-579: Very Poor
VantageScores®
- 781-850: Excellent
- 661-780: Good
- 601-660: Fair
- 300-600: Poor
So in general, a FICO® Score above 670 and a VantageScore® above 661 is considered good. The higher the score, the better.
Is a 745 Credit Score Good?
Yes, a credit score of 745 is good!
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According to FICO®, a 745 score falls in the “Very Good” credit range.
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With VantageScore®, a 745 is in the “Good” category, relatively close to “Excellent.”
So while a 745 isn’t perfect, it’s well above average and indicates responsibly managed credit. You have a proven track record of on-time payments and appropriate credit usage. Negative marks like late payments are likely dated or nonexistent.
Benefits of a 745 Credit Score
A 745 credit score unlocks access to quality loan and credit card offers. Here are some key advantages:
Higher Approval Odds
Lenders view borrowers with scores in the 740s as low-risk. You’ll have strong approval odds for most credit products.
Better Interest Rates
A 745 score makes you eligible for prime and even super-prime borrowing rates reserved for borrowers with excellent credit. This saves you money over the life of loans and credit cards.
More Financing Options
You’ll have your choice of lenders for mortgages, auto loans and other financing needs. More options means more competition for your business.
Lower Required Down Payments
Lenders are often willing to reduce down payment requirements for borrowers with very good/excellent credit representing less risk.
Reduced Insurance Premiums
Insurers use credit-based insurance scores to set premiums. Good credit can lower your costs for car, home, renters and life insurance.
Increased Credit Limits
Issuers tend to grant higher credit limits to low-risk borrowers. Higher limits help keep utilization low, further boosting your credit scores.
Card and Loan Perks
Issuers offer premium rewards programs, discounts, deals and cardholder benefits to attract and retain borrowers with excellent credit.
How to Improve a 745 Credit Score
While a 745 credit score gives you access to great loan terms, you may want to aim even higher. Here are tips to break into the 800+ “exceptional” credit range.
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Keep balances low. High balances hurt scores by driving up utilization. Try to keep individual and total card balances below 30% of limits.
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Don’t miss payments. Payment history is the biggest factor in your scores. Stay on track with on-time payments in full every month.
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Limit hard inquiries. Too many credit applications in a short period can indicate risk and ding your scores. Only apply for credit you need.
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Maintain credit history. Keep your oldest accounts open and active. The length of your history accounts for 15% of your FICO® Score.
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Diversify your mix. Carry different types of credit – credit cards, installment loans, mortgages. This shows you can handle diverse accounts.
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Dispute errors. Incorrect negative information drags down your scores. Get errors removed by disputing them with the credit bureaus.
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Give it time. Patience is key. Consistently demonstrating responsible credit habits will cause your scores to gradually improve.
Next Steps for a 745 Credit Score
If your goal is to maximize your credit access and minimize costs, focus on incrementally boosting your 745 score. Here are some suggested next steps:
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Check your credit reports from Experian, Equifax and TransUnion. Verify all information is correct and dispute any errors.
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Review your credit score factors to see where you’re gaining or losing points. Target weak areas.
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Sign up for free credit monitoring to track score changes and get tips for improvement.
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Research cards and loans you may want to apply for down the road. Know score requirements.
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Hold off applying for new credit in the short term to avoid hard inquiries temporarily lowering your scores.
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Create a plan to keep credit card balances low going forward. Don’t let utilization creep up.
With a 745 credit score, you have access to prime rates and terms. But boosting your score to 750+ can save you even more money. Monitor your credit, dispute errors, and let your long and responsible credit history work in your favor.
VantageScore’s Different Credit Scores
VantageScore creates a generic tri-bureau scoring model, meaning the score is designed for any type of lender. The same model can evaluate your credit reports from the three major consumer credit bureaus (Experian, TransUnion and Equifax).
VantageScore launched its first modelâthe VantageScore 1.0, which is no longer offeredâin 2006. In 2017, it released VantageScore 4.0, which was the first generic credit score to use trended data, such as how your balances or credit utilization rate change over time.
VantageScore announced its VantageScore 4plus⢠model in May 2024. Unlike previous versions, this model allows creditors to ask consumers if they would like to link a bank account and share their banking data. If the person links an account, VantageScore 4plus; can consider the banking data and recalculate their score.
| VS 3.0 | VS 4.0 | VS 4plus |
|---|---|---|
| Only considers data from a credit report | X | X |
| Can consider additional data with your permission | X | |
| Considers trended data | X | X |
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 FICO® Scores: These scores are created for any type of lender and they range from 300 to 850. The scores try to predict the likelihood that a consumer will fall behind on any type of credit obligation.
- Industry-specific FICO® Scores: FICO creates auto scores and bankcard scores specifically for auto lenders and card issuers. Industry scores aim to predict the likelihood that a consumer will fall behind on the specific type of account, and the scores range from 250 to 900.
- FICO® Scores that use alternative data: FICO has models that can incorporate alternative credit data, such as the UltraFICO® and FICO XD scores. Both scores range from 300 to 850. The former can consider linking deposit account information, and the latter can score people using nontraditional types of payment history from other databases, such as your telecom or utility payments.
FICO industry-specific scores are built on top of a base FICO® Score, and FICO periodically releases new suites of scores. For example, the FICO® Score 10 Suite includes a base FICO® Score 10, a FICO® Score 10 T (which considers trended data) and industry-specific scores.
Is A 745 Credit Score Good? – CreditGuide360.com
FAQ
What can a 745 credit score get you?
Credit Rating: 745 is a good credit score. Borrowing Options: Most borrowing options are available, and the terms are likely to be attractive. For example, you might be able to qualify for the best credit cards and some of the best personal loans.
Can I buy a house with a 745 credit score?
What percentage of people have a 745 credit score?
| FICO® Score Range | Percent Within Range |
|---|---|
| 600-649 | 8% |
| 650-699 | 11% |
| 700-749 | 16% |
| 750-799 | 24% |
How rare is a 750 credit score?
A credit score of 750 is considered “very good” and is above the average credit score in the United States. While it’s not as rare as an exceptional score of 800 or higher, it still places you in a relatively strong position with lenders.