Your credit score speaks volumes about you and is considered by lenders and potential employers alike. But what does a credit score of 750 really mean? Let’s find out!
What Does Having a 750 Credit Score Mean?
A FICO score between 740 and 799 is classified as “very good” and surpasses the average score of 716 (as of August 2022). Lenders regard individuals with a 750 credit score as responsible borrowers. This is because only 1% of these individuals are likely to default on their loans in the future.
While credit scores of 800 or above are deemed “exceptional,” a score of 750 will still qualify you for some of the best rates available for auto loans and mortgages. Additionally, you’ll have access to some of the most attractive credit card products.
Which Types of Credit Cards Can You Get with a 750 Credit Score?
A credit score of 750 unlocks the best credit cards on the market, including those with enticing cash back rewards, free hotel nights, airport lounge access, and low interest rates.
Here are three of our favorite credit cards for anyone with a 750 credit score:
Chase Sapphire Reserve® Card
The Chase Sapphire Reserve® Card is one of the top premium travel credit cards available. Although it comes with an annual fee, the perks easily outweigh the cost.
With this card, you’ll receive bonus miles and be eligible for the following Ultimate Rewards points on purchases:
- Earn 10x on hotels and rental cars booked through Chase Ultimate Rewards.
- Earn 5x on flights booked through Chase Ultimate Rewards.
- Earn 3x on other travel and dining.
- Earn 1x on all other purchases.
In addition to points on purchases, cardholders will enjoy an annual $300 travel credit, up to $100 credit every four years for Global Entry or TSA Precheck, Priority Pass™ Select lounge access, and more.
Citi® Double Cash Card
If you prefer earning a flat amount of cash back on every purchase without an annual fee, consider the Citi® Double Cash Card. Although it doesn’t offer a welcome bonus, you’ll earn 1% cash back on all purchases, plus another 1% back when you make a payment. Additionally, you’ll receive an introductory 0% APR for the first 18 months on balance transfers.
Blue Cash Preferred® Card from American Express
For those willing to keep track of variable cash back rewards, the Blue Cash Preferred® Card from American Express is an excellent choice. With this card, you’ll receive bonus miles and enjoy the following cash back rewards on purchases:
- Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (1% after that).
- Earn 6% cash back on select U.S. streaming subscriptions.
- Earn 3% cash back at U.S. gas stations and on transit.
- Earn 1% cash back on all other purchases.
As a card member, you’ll also receive up to a $120 statement credit for an Equinox+ membership and get $7 back monthly when using your card to pay for the Disney Bundle (Disney+, Hulu, and ESPN+). Please note that this card does have an annual fee.
What Will You Get Approved for with a 750 Score?
With a credit score of 750, you’ll generally be approved for most financial products. The terms you receive will be the only question.
Loans
If you’re looking for a car or personal loan, you should face no issues getting approved and receive some of the lowest interest rates available from lenders.
Mortgages
When purchasing a home, multiple factors come into play, including your credit score, monthly income, debt-to-income ratio, and more. However, with a 750 FICO score, you shouldn’t encounter any difficulties getting approved for a mortgage.
In most cases, you should also qualify for excellent mortgage rates as long as your debt-to-income ratio is reasonable. However, some lenders may require a 760 credit score to offer their best interest rates.
Rentals (Apartments)
While landlords don’t have a specific credit score threshold, it’s highly unlikely for a potential tenant with a 750 credit score to be declined.
What Will a 750 Score Impact?
Having a 750 credit score will significantly impact some key financial aspects of your life.
Interest Rates
Lenders closely consider credit scores when determining the rates they offer borrowers for various products. A 750 credit score should enable you to secure rates among the best for nearly any loan product. However, for the lowest mortgage interest rates, certain lenders may require a 760 credit score.
Types of Credit Cards
Many individuals place importance on earning credit card rewards. However, those with lower credit scores have limited opportunities to do so. As your score increases, the available credit card options also expand. Generally, a 750 credit score grants you access to the best credit cards with the most attractive perks.
How to Improve Your 750 Credit Score
Do you want to increase your credit score to ensure you receive the best rates possible? Here are a few tips to help you out:
Credit Monitoring
Regularly monitoring your credit score is crucial. It allows you to stay updated on potential issues within your credit report that could adversely impact your FICO score. Services such as Experian provide real-time updates on your credit report and enable you to address any inaccuracies promptly.
Budgeting Apps
Keeping a budget is essential for maintaining good credit. Your credit utilization, which accounts for 30% of your FICO score, compares the amount of credit you use with your available credit. Tracking your monthly spending helps you stay in control. Apps like Simplifi by Quicken offer visibility into your monthly spending across different categories, allowing you to make adjustments if needed.
Automatic Payments
Your payment history, which contributes to 35% of your FICO score, holds significant weight. Late payments can stay on your credit report for up to seven years and have a substantial impact on your score. To ensure you never miss a payment, set up automatic payments. Most credit card companies offer this feature, allowing you to automate payments for the minimum balance, statement balance, or total balance on your card. You can also use Cash App to set up automatic payments for other bills.
Limit Inquiries
Applying for new credit cards or loans leads to hard inquiries on your credit report, which temporarily lowers your credit score. While the impact is short-lived, it can affect the interest rates for which you qualify. Some lenders perform soft credit pulls for eligibility checks, which have no impact on your credit score.
Keep Accounts Open
If possible, refrain from closing credit cards to avoid potential negative effects on your credit score. The length of your credit history contributes 15% to your score, and closing credit cards can adversely affect this factor. Instead, contact your card issuer and inquire about downgrading to a card with no annual fee. Most issuers are willing to accommodate this request, ensuring you retain your customer status while avoiding annual fees.
Get Credit for Nontraditional Payments
In the past, not all payments contributed to your credit score. However, services like Experian Boost allow you to improve your credit score by including on-time payments for rent, phone bills, and streaming services.
Time Stamp: A Credit Score of 750 Opens Most Financial Doors
If you possess a credit score of 750, you’re on the right track. Lenders see you as a responsible borrower, leading to lower interest rates on loan products and access to the best credit cards. However, it’s worth noting that a score of 800 or higher is considered “exceptional” and offers even better credit cards and the lowest mortgage interest rates.
Frequently Asked Questions (FAQs)
What Interest Rate Can I Get with a 750 Credit Score?
With a 750 credit score, you’ll qualify for lower interest rates on auto loans, personal loans, and credit cards. While some mortgage lenders offer their lowest interest rates, others may require a credit score of 760.
How Much Can I Borrow with a 750 Credit Score?
Although your credit score influences the amount you can borrow, other factors like your income and debt-to-income ratio also come into play. Lenders consider all this information to determine your borrowing capacity for specific products.
What Kind of Home Loan Can I Get with a 750 Credit Score?
The type of mortgage you can obtain depends on more than just your credit score. Factors such as whether it’s a conventional or government-insured mortgage, fixed or variable interest rate, your annual income, the home’s location, down payment size, and loan term and amount all affect the terms you may be offered.
As of December 18, 2023, FICO reports that a 750 credit score would result in an annual percentage rate (APR) of 6.416% on a 30-year fixed-rate conventional mortgage for $300,000. The monthly payment would amount to $1,880. For a 15-year fixed-rate version, the APR would be 5.747% with a monthly payment of $2,491.
And that wraps up everything you need to know about a 750 credit score. Keep up the good work and continue managing your finances responsibly!
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