A 720 credit score is at the border between “good” and “excellent” on a 300-850 range.
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A 720 credit score on the common credit scoring range of 300-850 is right at the border of “good” and “excellent.” In fact, when your score hits 720, you’ve just crossed over into the excellent score band. That’s great news, unless your score was higher and you’re worried about what a loss of points might mean.
If your 720 credit score is cause for celebration, keep in mind that scores fluctuate as new data flows into your credit reports. If your score has plunged to 720 because of, say, a late payment, you may no longer be eligible for the very best terms on financial products. Because your score is at the dividing line between excellent credit and good credit, you probably want to wait until youre more firmly in the excellent category before you apply for credit. With your 720 score, here’s how you compare:
A 720 FICO score is slightly better than the average FICO 8 score, which was 717 as of October 2023, up one point from a year earlier, according to FICOFICO Decisions Blog . Average U.S. FICO Score at 717 as More Consumers Face Financial Headwinds. Accessed Nov 2, 2023.View all sources. A 720 score is significantly better than the average of 700 on the VantageScore 3.0 model, as of October 2023, up six points from a year before. You are in the excellent credit range, which is 720-850. But any drop in your score could move you back to the good credit range of 690-719.
A 720 credit score is considered excellent by credit scoring standards. It opens up a lot of opportunities when it comes to getting approved for loans, credit cards, and other financial products. But what exactly can you get with a score of 720? Let’s take a look.
Understanding a 720 Credit Score
First it’s important to understand what a 720 score means. There are two main credit scoring models – FICO and VantageScore.
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On the FICO model, which ranges from 300-850, a 720 is in the “very good” credit category. It’s below the “excellent” range, which starts at 740.
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On the VantageScore model, also 300-850, a 720 is at the low end of the “excellent” credit band.
So a 720 is either very good or excellent, depending on which model is used. It’s above the national average credit score of 716 on FICO and 714 on VantageScore.
This means a 720 score demonstrates responsible credit usage to lenders You have a good history of on-time payments and low balances compared to credit limits As a result, a 720 credit score makes you a very attractive borrower.
Loan Approvals
With a credit score of 720, you’ll likely get approved for most loans you apply for, with the exception of maybe the most exclusive products reserved for higher scores.
Mortgages
A 720 FICO score is high enough to get approved for a conventional mortgage. However, you may not get the absolute lowest rates or qualify for some specialized mortgage programs that require higher scores.
On a $300,000 30-year fixed mortgage, someone with a 720 score may pay 0.125% to 0.25% higher interest versus someone with a 740+ score, which equates to around $30-$60 more per month.
Still, a 720 credit score will qualify you for competitive mortgage rates from most lenders. You can likely get a 30-year fixed mortgage around 5.5% to 6.5% interest with a 720 score currently.
Auto Loans
With a 720 score, you can expect to get approved for the best auto loan rates. According to Experian, borrowers with scores in the “prime” tier like yours (720-780) were recently seeing average new car loan rates around 4.5% to 7%.
That’s only about 0.5% higher than the “super prime” tier above 781. You may not absolutely minimize interest costs, but a 720 FICO provides access to the most competitive auto financing terms.
Personal Loans
A 720 credit score makes you a very attractive borrower for personal loans as well. Most lenders consider 720 excellent credit, even if it falls short of their top score tiers.
Interest rates can vary wildly on personal loans depending on the lender, loan amount, and term. But with a 720 score, it’s reasonable to expect rates of around 5% to 15% at most lenders currently.
Credit Card Approvals
In addition to loans, a 720 credit score opens the door to approval for many of the best rewards credit cards.
Cards that require “excellent” credit become options with your score. This includes popular travel rewards cards like:
- Chase Sapphire Preferred
- Capital One Venture Rewards
- Bank of America Premium Rewards
720 also meets the credit standards for most airline credit cards, hotel cards, and premium cash back cards from issuers like Citi, Wells Fargo, and US Bank.
The only cards likely out of reach are those with ultra exclusive approval criteria demanding 750+ scores. But a 720 FICO or VantageScore will qualify you for 90%+ of the most rewarding credit card products.
Other Perks
Beyond loans and credit cards, a 720 credit score provides other advantages as well:
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Lower insurance rates – Auto and homeowners insurers often use credit scores as a factor in pricing. 720 is likely to secure you lower premiums.
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Apartment approvals – Landlords frequently check credit scores. A 720 makes it easy to meet minimum score requirements during rental applications.
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Cell phone plans – Cell providers may check your credit before approving financing for a new device. 720 ensures the best upgrade offers.
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Utility services – Some cable/internet companies check credit scores before approving new subscribers. 720 makes it easy to avoid deposits.
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Employment – While controversial, some employers peek at credit scores during background checks. A 720 looks responsible.
How to Improve from 720
While 720 is an excellent score already, you can take steps to improve it even more:
- Lower credit utilization below 30%
- Pay all bills early or on time
- Limit new credit applications
- Ask for credit line increases
- Monitor credit reports for errors
- Let length of credit history grow
With smart credit habits, a 720 score can climb into the 750+ tier. That unlocks the most exclusive financial products requiring exceptional credit.
The Bottom Line
A credit score of 720 indicates to lenders that you are a very low-risk borrower who uses credit responsibly. It qualifies you for approval on most mortgages, auto loans, credit cards and other products. Interest rates may not be rock bottom, but they’ll be competitive.
While 720 is just shy of the top credit scores above 750, it demonstrates excellent credit management. With your 720 score, you have access to a full range of credit products – although you may not get some exclusive offers reserved for higher scores. Maintaining responsible habits will keep your score strong.
Home loans
Assuming you have enough income, a 720 credit score is likely high enough to help you get a government-backed mortgage such as an FHA for VA loan. However, it’s probably not high enough to get the lowest interest rates available.
Credit cards
A 720 credit score is going to look pretty good to most credit card issuers. The top-of-the line rewards cards may be out of reach, but you’ll likely be able to qualify for decent cards with rewards or cash back.
4 Ways to Leverage A 720+ Credit Score
FAQ
How much can I borrow with a 720 credit score?
What can you get with a credit score of 720?
You can typically get a personal loan with a 720 credit score. Personal loans usually have a fixed interest rate and fixed payments, and typically offer fairly quick funding. You can use a personal loan for whatever you want. For instance, some people use it to pay down credit card debt or a major medical bill.
What credit limit can I get with a 720 credit score?
| Credit category | Credit score range | Average credit line |
|---|---|---|
| Super prime | 720-850 | About $10,000 |
| Prime | 660-719 | Less than $6,000 |
| Near prime | 620-659 | About $3,000 |
| Subprime | 580-619 | About $2,000 |
Can I get a car with a 720 credit score?
Generally, a good credit score to buy a car falls within the range of 660 to 720 or higher. However, it’s important to note that each lender has different criteria, and some may consider lower credit scores as well.