What Life is Like with a 750 Credit Score
A 750 credit score is an achievable goal, and it can open unexpected doors, too. Besides the obvious perks of easy financing and lower interest rates, there are additional benefits to enjoy. Maintaining a credit score of 750 and above can save you a ton of money in many ways.
It gives you negotiating power, allows you to avoid security deposits on utilities, makes you pay less for auto insurance and offers a host of other advantages. Consequently, it also helps to reduce stress levels, allowing you to sleep better at night.
Credit score ranges
Qualifying for credit based on a FICO score is all about the range a potential borrower falls into, which is from very bad to excellent. Though many credit applications ask for additional information such as income, the credit score is still a primary criterion used by most lenders in their assessment of creditworthiness.
The average credit score comes in at 689, which falls into the fair range. Here are the ranges for comparison:
- 300 to 560: Very bad.
- 560 to 650: Bad.
- 650 to 700: Fair.
- 700 to 750: Good (prime).
- 750 plus: Excellent (above prime).
Advancing through these brackets and building good credit requires paying bills on time, which ranks as the most important factor. The next most important aspect is credit utilization ratio. This factor, driven by credit card use, provides a strong indicator of the person’s fiscal position.
Finally, time matters, both the length of time you opened what are considered good accounts, and the length of time from a delinquency or life event such as bankruptcy.
Why a 750 credit score leads to the good life
Obtaining a 750 credit score opens doors not available to people in lower credit brackets. Lower interest rates provide strong financial incentives. It’s easy to think that the difference doesn’t matter that much, but it does.
People with poor credit pay hundreds or even thousands of dollars in interest more than their higher rated counterparts. Consider the following credit score statistics :
- Bad credit: Up to 29% APR on new car loans
- Excellent credit: Pay as little as 0.9% APR on new car loans.
- Bad credit: Mortgage APR up to 5.5%
- Excellent credit: Mortgage APR as low as 4.025%
To put this in perspective, a $200,000 mortgage at 4.025% APR is equal $958 per month.. Raise the APR to 5.5, and the payment surges to $1,136, a difference of $178 per month. A 60-month car loan at 0.9% APR costs $426 a month. Raising that rate to 29% APR increases the payment to $794, a $368 difference.
Credit card holders with FICO scores over 750 reside in a whole different neighborhood. high FICO credit card holders enjoy many benefits, including low interest rates, zero-percent APR for periods over a year, travel points and even pre-sales for concert tickets.
In addition, they get the highest cash back rewards and bonuses. The money saved with low or no interest and the rewards adds up to hundreds or thousands of dollars per year, depending on spending habits.
When it comes to housing, people with higher scores qualify easily and are eligible for low or no security deposit deals.
Raising your credit score
Step one: find out your score. There are many free options, such as the Discover Credit Scorecard. Next, review your report for errors, such as paid off accounts marked as delinquent. The credit bureaus provide a service for updating incorrect records.
Once you’ve removed the blemishes, take a look at your revolving accounts utilization. If the utilization rate is over 30 percent, it’s hurting you. You can reduce this rate by paying off cards and increasing your total revolving credit limits, either by opening a new account or being granted a credit line increase by one of your lenders.
The rest requires time. As accounts are open for longer periods and reported as paying on time, credit scores rise drastically, though not all at once. It’s a steady climb upwards to the 750 mark.
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By becoming an authorized user on a high credit limit account, customers receive a rapid boost in their score. We’ve helped thousands of customers move to the next credit bracket. Visit BoostMyscore.net to learn how you can get the credit score you need to enjoy low interest rates and big-time rewards.
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