A 720 credit score is a good credit score! A 720 credit score shows a lender that you have good financial habits and handle credit accounts well. With this credit rating, you can expect an array of benefits and financial products.
A 720 credit score is a good place to be with your credit scores! Below you will learn all the ins and outs of being in this credit rating along with tips on how to maintain this score. We’ll also answer some frequently asked questions that people with this credit score often ask.
Key Takeaways for a 720 Credit Score
Overview of Your
Credit Rating
A 720 score is a good credit score. This puts you in good shape with your finances.
Borrowing Options With a
720 Credit Score
With a 720 score, you will likely have a wide range of borrowing options to choose from.
Improving a 720
Credit/FICO Score
Improving a 720 score is possible, but it will need to involve a strategic approach and focus.
Is a 720 Credit Score Good?
A 720 score is a good score! And that is great news; it means you’ll likely have a smooth time with financing, borrowing funds, and beyond. Continue reading to learn more about the ins and outs of having a 720 score.
What Can I Get Approved For?
Upstart
4.9 Trustpilot Rating
- Personal loans
- Car loan refinance
- Low fixed rates
- No hidden fees
Upstart is an online lending platform that partners with banks to provide personal loans from $1,000-$50,000. Upstart goes beyond traditional lending metrics to help borrowers find financing that considers their education, work experience, and more.
Min Credit Score Depends on Specific Lender
Freecash
4.6 Google Rating
- Highest payouts
- Instant cashouts
- Daily bonuses
- No credit score required
With Freecash, you get paid for testing apps, games, and surveys. Start by choosing an offer on the ‘earn’ page. Most offers only take 5-10 minutes to complete. Once you complete the offer, you’ll be rewarded with coins that you can exchange for cash.
No Minimum Credit Score Required
eMortgage
4.8 Google Rating
- Network of lenders
- Home purchase
- Home equity line of credit
- Home refinance
eMortgage is here to help you find the right home loan, refinance, HELOC, or reverse mortgage you need. Fill out some simple information about the type of property and loan you need, and they’ll connect you with up to 5 lenders who can help.
Min Credit Score Will Depend on the Lender You Choose
Having a 720 score will mean a great start when it comes to applying for financing options. Here are some loan options you may be able to consider when your credit score is in the good range.
Personal Loans
Personal loans can be found with all kinds of financial institutions, including banks, credit unions, and online lenders. With a 720 score, you should be able to go to any of these lenders for a personal loan—just be mindful of the income requirements that lenders will have.
Bank Loans
Most banks offer at least one kind of loan product. However, not everyone may be approved. However, with a good credit score, such as a 720 score, you should be able to get through the credit history or score criteria.
Here are some examples of loans that banks may offer:
- Personal loans
- Home equity loans
- Auto loans
- Mortgages
- Home equity lines of credit (HELOC)
- Student loans
- Business loans
- Construction loans
- Bridge loans
- Credit builder loans
- Debt consolidation loan options
Credit Cards
Credit cards can be found with banks, credit unions, and other independent lenders. With a 720 score, you will likely have several options that you can choose from. This can be extremely convenient because credit card rewards and costs can vary so much. Getting your pick is critical for the best fit.
Car Loans
You can find a car loan with several financial institutions, and some dealerships may offer you in-house financing. With a score of 720, you should be in good shape with auto loans, but keep in mind that there is usually some kind of down payment requirement, and income will be a significant factor with a car loan.
Products to Help Improve a 720 Credit Score
Once you get to good credit score ranges, the difficult thing may be maintenance; here are some products that can help you keep your hard-earned good score of 720.
Credit Monitoring Services
Credit monitoring services can be an extremely helpful tool when it comes to maintaining or improving your credit. Unfortunately, many people don’t check their credit reports often; in fact, a survey showed that nearly 1 in 3 Americans do not even know their credit scores!1 Credit monitoring services can alert you about any changes in your credit reports, and that can help you stay on top of maintenance. Here are some credit monitoring services out there:
- Experian CreditWorks℠
- Equifax®
- TransUnion Credit Monitoring
- Credit Karma
- Credit Sesame
- MyFICO
- IdentityForce®
- LifeLock
- PrivacyGuard™
- Identity Guard®
Autopay
Autopay or automatic payments can be a lifesaver to help you maintain those healthy credit habits that got you to a 720 score. Payment history is actually the most significant factor that impacts your credit scores. Autopay can do the work of paying those bills for you.
Diversity With Your Credit Mix
Your credit mix is the diversity that your credit reports have with your credit accounts. If you already have a good score, diversity in your credit may be one of the main ways to improve. When it comes to maintenance, having the same kinds of accounts may hurt your scores, so diversity is vital for improvement and maintenance.
Benefits of a 720 Credit Score
Now, let’s get to the good part! Having a 720 score and positive credit history has many benefits! Here are some of them to look forward to.
Great Interest Rates and APRs
You’ll get really good interest rates and APRs, which can save you money!
A Range of Loan Products to Choose From
Whether you need a short-term or long-term loan, with good credit, you’ll have a wide range of products to choose from. This can be super helpful when you need a specific kind of loan or want personalization.
An Easier Ability to Find a Place to Rent or Buy
With good credit comes ease with renting or buying a home. This can be a great benefit and can mean finding your dream home!
How To Maintain Your 720 Credit Score
Here are some tips to maintain your credit score:
Avoid Cosigning, Co Borrowing, or Becoming an Authorized User
With a good credit score, you may be asked by friends or family members to cosign, co-borrow, or allow them to be an authorized user. The problem with this is that if they miss a payment, it will also impact your credit. And so, to help maintain your credit score, it’s best to avoid this.
Don’t Slack on Paying Your Bills
To keep a 720 score, you should maintain a positive payment history that you probably already have built! Ensure your bills are paid on time.
Avoid Unnecessary Debt
To protect your overall credit score, you should try and avoid unnecessary debt. Increasing your debt can increase your credit utilization rate, which can really hurt your credit scores.
FAQs About 720 Credit Scores
How do credit bureaus and FICO scores interact?
There are a few scoring models; FICO is one. Credit bureaus track your credit accounts, influencing your FICO score. A 720 FICO score indicates responsible credit management. Regular checks of your credit report from each credit bureau help you see how your accounts impact your FICO score.
What if my score drops below 720 with a high credit limit?
If your score falls below 720, check your credit report from each credit bureau for inaccuracies and assess how you manage your credit accounts. Reducing debt and maintaining timely payments can help recover your score.
Can a higher credit limit improve my FICO score?
Yes, increasing your limit can improve your FICO score if it lowers your credit utilization ratio without increasing spending. Managing your credit accounts wisely and keeping utilization low is key to enhancing your FICO score from 720.
What Interest Rate Can I Get With a 720 Credit Score?
Interest rates can vary quite a bit depending on the lender, loan type, and the borrower’s finances, including their credit history and credit scores. And so specifics will be tough. However, with your credit score around 720, you should be in the good range of interest with most installment loans or revolving credit products.
Here is a quick example with a hypothetical mortgage: let’s say the lender offers a range between 3% and 7% for a 30-year option. Let’s take a look at the ranges you could expect depending on your score:
Credit Range | Interest Rate |
760-850 | 3.0% |
700-759 | 3.5% |
680-699 | 4.0% |
660-679 | 4.5% |
640-659 | 5.0% |
620-639 | 5.5% |
Below 620 | 6.0% – 7.0% |
Remember, this is just hypothetical to show you where a good credit score could fall! Actual rates will vary.
Can I Buy a House With a 720 Credit Score?
Going off of the example from above, let’s discuss whether buying a home is possible with a 720 score. There are more factors aside from credit scores that lenders will consider for a mortgage loan. You’ll need to meet income requirements, have an acceptable debt-to-income ratio, cover closing costs, and more. However, a 720 score with the three credit bureaus should get you through credit eligibility; the other factors will determine final approval.
