It is considered to be one of the most valuable numbers in your financial life. And it decides whether you qualify for credit cards, loans, mortgages, and sometimes employment and housing. Now you might be wondering, where does a 750 credit score put you? Is it considered a great score that would place you in a different league? Or is it more average – good but could be better?
Well, in this article, we will discuss what exactly a 750 credit score entails, how many people use this score, and if it is good enough for one’s requirements. Continue reading for more detailed information on 750 credit scores – just how uncommon are they, and what does one need to know about this significant figure?
What does it mean to have a 750 Credit Score?
Understanding that a 750 credit score would be seen as a very excellent credit score would help one to get the finest credit facilities on loans and credit cards and thereby obtain the best interest rates. Given that a credit score of 750 falls between 740 and 799, FICO rates it as Very Good.
Lenders will be told by scores in this range and above that the borrower has a rather low credit risk. In essence, a 750 score indicates the customer has a perfect record as per the credit report, with a strong track record on payments, usage of more than one form of credit, moderate credit use, and extended credit history; no bad notes on the credit report for the previous two years.
Here is a basic overview of the many credit score ranges: Here is a brief review of the many credit score ranges:
800-850 Exceptionally Good 740-799 Very Good 670-739 Good 580-669 Fair 300-579 Very Poor
Consequently, it is reasonable to say that a 750 credit score is outstanding and even almost perfect regardless of the credit rating method used.
What Number of People Have the Same 750 Scores
Based on this understanding that a 750 is widely believed to be a very good credit score, one would expect that the number of people with such scores is very small. But that isn’t necessarily the case. The average credit score in the United States in April 2021 was 716, which is the highest recorded. While approximately 17% of consumers have credit scores ranging from 750-799.
That means about 1 in 5 Americans have very good to exceptional credit, which is just a stone’s throw away from 750. At present, there are more than 75 million Americans belong to this credit score range.
The distribution of credit scores among American consumers includes:
- 41 percent scored below 580.
- 14% with Scores 580-669
- 7% with Scores 670-739
- 43% with Scores 740-799
- 33% with Scores 800+
As we can note, although 750 FICO scores are impressive, they are not as impressive as the 800 + club. There are more than 45 million Americans who have credit scores that are higher than 740. A score that once could only be earned by the hardworking “credit unicorn” is now held by nearly 20% of people with credit reports.
But it has been changing in recent years and months, as American citizens have been strengthening their credit scores year after year, decade after decade. This is what everyone seeks – affordable credit and those are the scores that unlock the loans and interest rates.
The Question Is: Why Did 750 Credit Scores Become More Popular
There are a few key reasons why very good and exceptional credit scores are less rare in 2022, There are a few key reasons why very good and exceptional credit scores are less rare in 2022, including:
- Better Credit Awareness & Control – Thanks to several free credit reports online, coupled with enhanced credit tracking techniques, credit control has been taken to a new level among Americans. The figures have gradually increased over time, as consumers constantly work on their credit reports by paying their bills on time, reducing credit utilization, and contesting adverse items with creditors and others.
- Economic Growth & Wealth - Despite the pandemic resulting in potential economic loss for many people, there was a considerable increase in employment opportunities and reduced unemployment rates before the COVID-19 outbreak. This made it possible for people to balance their expenditures, repay their debts, and enhance their scores.
- Economic Revival – Following the COVID restrictions that began in mid-2020, affecting several operations of small businesses, there was a general downtrend in credit scores. However, economic growth in 2021 looks exceptional. Government spending was used to strengthen Americans’ money, while credit providers introduced new and flexible contingency programs for the recipients. These market influences preserved the balance of many people’s credit scores.
- Although more and more people around the country are getting 750+ credit scores, these figures are still not easy to achieve and maintain without careful work and proper credit conduct. Thus, having a very good/exceptional credit rating is an accomplishment. However, with enough tutelage and assertiveness, a growing number of Americans achieve this figure to enable them to access the lending market’s superior opportunities.
Is 750 Credit Score Sufficient
The question of whether or not 750 is good enough would therefore depend on your specific financial needs and objectives. Here are some key considerations: Here are some key considerations:
- Interest Rates – The greater your credit score, the higher the loan and credit card interest rates that you can get from the lenders. Indeed, a 750 score does qualify you for a higher credit limit and excellent rates of less than 5% APR of installment loans and mortgages, and the rates for scores higher than 760 would be lower.
- Credit Approvals – A 750 credit score entails near-certain approval probabilities for most credit products. Except for jumbo mortgages or luxury/exotic auto loans which may necessitate higher income and score requirements. Otherwise, a 750 score is sufficient for very high loan approval across the board, save for the precedented circumstances above.
- Financial Goals - If your goals are to secure a conventional mortgage, purchase a luxury car, or use exclusive credit cards that offer excellent rewards, it can be worthwhile to aim even higher than 750. High financial targets require top-tier credit to improve the assurance of the most favorable rates.
- Peace of Mind – It is of course always good to take your very good credit score of 750 and above to the next level. Scores that go above 760 are deemed higher to offer borrowers a little more flexibility in case of some mishap or fluctuation in their credit scores. Those 20+ points are worth it to have some buffer against potential financial struggles.
The Takeaway
A credit score of 750 is considered very good or even exceptional, and more than 20 percent of Americans have this score. With a past high score being relatively rare, consumers have become wiser in handling their credit to be able to secure the best rates of interest and loan choices.
Hence, even attaining and maintaining very good credit scores remains an arduous task for the majority. Still, with proper financial management, more people can achieve this number. Where 750 FICO or VantageScore makes you eligible for excellent loan terms and approvals, getting above 760 offers more modest improvements to the rate and score stability in the long run.
In conclusion, obtaining a credit score of 750 means that the credit is used efficiently and the payment history is good. And it opens up lenders’ lowest borrowing rate possibilities. As for the ‘it is good enough,’ that depends on your objectives, but all in all, compared to the majority of Americans, you are ahead of the curve. Maintaining this tier of credit access requires you to remain consistent with good money management skills to sustain this tier of credit for years.
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