The agencies of credit rating also consider a credit score of 750 to be excellent. It puts you in the second-best group (a score ranging from 700- 850) because lenders consider people in this bracket to be very creditworthy and will give you their best rates and financial deals. But what percentage of consumers gets to this optimal level of creditworthiness? So, let’s get into some of the actual statistical data of who has a 750 FICO score.
Experian’s data presented in 2020 suggested that only 14% of the US population had scores of 800 or above. Thus, it turns out that getting exactly 750 would be a hundred times less likely than a perfect score of 800. Scholars using data from Experian’s State of Credit report indicated that as of 2020, 29 percent of consumers had credit scores of 700 to 749.
So although 750 is significantly higher than the average credit score of 716, it is still a sign of better credit management than 70 percent of US citizens. Getting from lower credit to south of 750 is a significant leap in his/her credit status in the sense of minimizing risks in future loans and qualifying for the best interest rates.
How 750 Fits in the Credit Score Range Distribution?
To assess what an isolated having a 750 score is, one must look at credit scores on a bell curve. Almost all credit scores that are derived from the FICO model that the particular lender in question will apply are likely to be of a value between 300 and 850.
Here is how the breakdown of the score among US consumers based on data from FICO:
- 300 to 579: Roughly 22 percent of people
- 580-669: It is estimated that 20% of population
- 670 to 739: People between 27% and 30%
- 740 to 799: Approximately (21%) of people
- 800 to 850: Roughly 10 percent of individuals
Therefore, it turns out that up to 31% of consumers have a FICO score of 740 or above in the year 2021 information. Those with scores of 750 to 799 are about 6 to 7% of the entire population with credit scores, which is one-fifth of the total scores. If the loan amount is exactly 750, it will probably mean that the credit score is in the range of 75th to 80%.
Although 740 is considered as the range of outstanding credit, still many lenders post certain special interest rates, loan approvals, and credit products for those with 750 + scores to help them recognize their most credit-worthy clients. Rounding up from an average of 695, for instance, to the 750 range can shave a considerable amount from a mortgage or car loan, get you lower insurance costs, or get you signup bonus rewards on credit cards. Well, who tends to form that higher-scoring group of about 30 % of consumers?
Which Demographic Group Will Likely Be Most Affected by the Higher Credit Rating of 750?
Comparing the demographic data, it can be seen that some demographic segments are more successful at sustaining very high credit scores. Of the US population, the percentage of those with a college degree and above and those earning more than $60,000 are more likely to achieve FICOs of 750 or above. For instance, 67 percent of the holders of master’s degree credit score above 700, while only 23 percent of the consumers with little education, or consumers with less than a high school diploma.
There are also some key differences in 750 credit score attainment by age, ethnicity, and location identified in studies of millions of consumer credit reports:
- By Age: In the case of middle-aged adults the average scores are relatively high and concentrations are more seen at 750+. Candidates older than 65 years obtain lower average values, but they get more opportunities for credit with higher scores. A worrisome number to note is that only 23% of the young millennials have a prime credit score.
- By Ethnicity: The credit reports show that Asians get scores higher than 700, roughly 62 percent, while whites scored 33 percent on the same. Only 19 percent of blacks and Hispanics score above 700. But when one looks at factors such as equity or income, the gap is reduced. Assets in high income increase the chance of excellent credit for all groups.
- By Location: The states that have the highest number of people possessing 750 and above credit scores include Minnesota, North Dakota, Vermont, South Dakota, and New Hampshire. Below-par credit averages come from the southern regions such as Louisiana, Mississippi, Alabama, Texas, and Georgia among others. It is better for credit regardless of the region if you are a middle to upper-income earner above the median regional income.
Changing the Question: How many new excellent scores will there be?
They increased to some extent after the Great Recession as the economy improved and more consumers gained top-tier credit percentages. The superior FICO scores above 720 increased to new heights that had not been seen in at least ten years by the year 2021. This implies that the requisite demand for credit, coupled with prudent usage has gradually enhanced for millions of individuals.
The average FICO score continues to remain elevated and is currently experiencing a historical high above 716 during the economic volatility of 2022. Other measures that have saved many people from experiencing a drop in their credit scores include payment holidays extended across 2020. Even though inflation and increasing interest rates are likely to restrain some of those gains.
Over the next five years, we can still expect to see around:
- Over 10 million more Americans attain a credit rating of 700 or above
- More than 5 million qualify for interest rates under 5 percent by moving over 740
- 2+million new consumers providing access to the best rewards with new 800+ scores
It does not matter if you start at 600, 650, or 700, Holding on-time payments, having a credit card utilization rate below 30 percent of the credit limits, limiting the number of hard credit inquiries from credit shopping, and correcting erroneous entries will take you a long way in achieving a 750 plus score.
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