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.
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
So a FICO score of 740 falls into the “very good” range It is well above the average credit score of around 710 With this score, you should qualify for most loans and credit cards at favorable 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 with a score of 740, your approval odds are very high for most credit products You can likely get approved for top rewards credit cards, 0% intro APR 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 your Very Good 740 credit score opens up a world of rewarding credit card perks and features.
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
While a 740 credit score gives you access to great loan offers already, you can improve it further 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 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.
Why Having a Good Credit Score Is Important
Having good credit can make achieving your goals easier. It could be the difference between qualifying or being denied for an important loan, such as a home mortgage or car loan. 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 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.
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. The good-credit range includes scores of 700 to 749, while an excellent credit score is 750 to 850, and people with scores this high are in a good position to qualify for the best possible mortgages, auto loans and credit cards, among other things. Credit Rating: 740 is a good credit score.
Do people with a 740 credit score pay their bills on time?
People with credit scores of 740 typically pay their bills on time; in fact, late payments appear on just 24% of their credit reports. People like you with Very Good credit scores are attractive customers to banks and credit card issuers, who typically offer borrowers like you better-than-average lending terms.
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.