Which of these are Good Credit Scores?
What is a “Good Credit Score” anyway?
A credit score between 740 and 799 is considered very good, and lenders offer lower interest to people with this credit score. If your credit score is at 770, this is an excellent score showing you are doing great and above average.
The average credit score nationally stands at 711, and 1% of the people with this kind of score and above are likely to become very delinquent in future.
So, 770 credit score, is it good or bad? Yes, it is, and you can do much more to maintain and improve it.
What Does a 770 Credit Score Mean?
With a 770 credit score, your credit reports show that you pay your bills in good time, and late payments appear on only 22% of reports within this score range. A 770 credit score also helps in loans as lenders consider you a low-risk borrower.
According to FICO, 770 is very good, placing it at the upper end of the ‘good’ range. Being above the national average, it is considered a ‘VantageScore’. Once you get to 760, you get the best rates in the market and sometimes, it could be a waste of time trying to go higher.
However, there is still room for improvement because the highest credit score one can attain is 850, but you could still fall to as low as a 300 credit score.
How can You Get and Maintain a 770 Credit Score?
Getting this kind of credit score involves several factors you should build on and maintain on. If these factors are not followed as they should, you risk dropping your credit score.
Even for those with an excellent credit score, it is vital to maintain these factors, especially if you need a new loan and need the best loan rates.
- Credit usage rate
Your credit utilization is used to see how close you are to maxing out your credit card account. It is calculated by dividing how much you have used on your credit by the amount available.
For a good credit score, you should keep your credit utilization rate at 30% or even lower for a much better score. If you wish to get a new credit card but your credit utilization rate is high, make a few early payments on your existing credit card to make it easier to get a new one.
- Your number of credit cards
Juggling several credit cards efficiently is another way to improve your credit score. It also shows lenders that you are experienced in using credit though applying for loans is not recommended to improve your score, especially if it will cost you more than you have.
Be careful when applying for a new loan because it may injure your credit reports, limiting your chances of being granted a new loan.
- Credit history
The age of your credit history or how long your active accounts have remained open is another factor influencing your credit score. Cancelling credit cards affects your credit history, mainly if you have used them for a while.
To get or maintain a good credit score, always consider what impact closing a card may have on your history. Your credit utilization rate is affected by closing a card because you lose the credit limit amount on the specific card.
However, your card issuer may also decide to close your accounts if you are inactive. Always keep your accounts active with occasional but minimal purchases to avoid cancellation.
- Your history of credit payment
Your payment history affects your credit track record positively or negatively. One late payment may reduce your credit score significantly. Always call or visit your credit issuer to remove the late payment on your records, especially if it is an often issue for you.
- New credit
To maintain or get your credit score rising, always make sure you avoid any adverse effects on your scores when applying for a new credit card or loan. Sometimes the impact may be small, but lenders may view it as a warning sign.
Advantages of a 770 Credit Score
As we mentioned, a credit score of 770 signifies that you have good credit management through paying your bills on time. Your credit reports hardly show any late payments or negative entries; if there are, they are most definitely from two or more years back.
Here are the two major advantages:
- You can quickly get a credit card
When you apply for a credit card with a 770 score, you are automatically approved for most credit cards. To maintain these credit cards within the same range, always remember to make your monthly payments on time while keeping your credit limit balance below 30%
- You can easily borrow from lenders
People with a credit score of 749 to 850 (850 is quite rare) are very attractive to banks and other lenders, and they offer such customers better lending terms than others. There are quite a number of loans you can qualify for.
The Types of Loans you Can Qualify for With a 770 Credit Score
- A mortgage and home loan
With this kind of credit score, getting this loan is pretty easy because of its rating category, the second-highest currently. Simply finish minimal credit repair (which may take a few short months), apply and wait for approval.
- A personal loan
This loan is also easy to get with a 770 credit score. If you are patient enough, you can get better rates on a personal loan by repairing your credit card and waiting a few months. This helps remove all hard inquiries on your report making you more attractive to the lender.
- A car loan
Qualifying for a car loan with this score is cheap, and you get the best rates because the car lender sees little or no risk. You can also improve your auto loan terms by repairing your credit.
How Long it Can Take you to Get a 770 Credit Score
The time it takes highly depends on where you are starting. Removing all hard inquiries on their credit report will take a short time for a person with good credit.
Avoiding collection accounts is also a good idea as they may drastically drop a good credit score to one way below average.
If you are sure starting out weak, it will take you much longer because a single negative mark on your credit report could lower your score to below 500.
A 770 credit score is considered very good; to maintain it; you need to keep your credit utilization below 30% and pay down your balances in good time. Having several credit accounts with revolving credit and installments also helps.
Always keep in mind that late payments can drop your credit scores quickly. The age of your credit history also plays a vital role in your credit score. Try your best to keep a long, positive payment history to get reasonable rates from creditors.