If you have a 740 FICO (r) score, you are probably wondering, “Is it good enough to apply for a credit card?” Credit scores are a useful filter for lenders, because they determine a person’s credit worthiness by analyzing the items in their credit history. While 740 is a solid score for many purposes, it’s still important to consider the following factors.
While 740 is considered “good,” you might not qualify for the best loan terms if you have this score. If you have a 740 credit score, you will likely have to obtain a cosigner or apply for a loan with a higher credit limit. Moreover, you may be rejected several times, which will lower your credit score even further. You will also be subject to higher interest rates, which can be an unnecessary financial burden. In addition, a 740 credit score will not allow you to get the best credit card rewards.
A 740 credit score is considered “very good” by FICO, and by VantageScore. It is significantly higher than the lowest credit score of 300, and is in the middle of the “good” range. With this score, you’ll have a good financial history and a good behavior, which are important factors in a lender’s decision to grant you credit.
When it comes to car loans, a 740 FICO score is an excellent choice. A high credit score will enable you to get the best terms from car dealers. However, you will need a significant down payment and an income requirement to qualify for a 0 percent interest rate.
Having a high score can help you get better loan offers and save you money on insurance. A good credit score can also get you the best credit terms from your landlord or employer. A high score can also help you get your dream job. Most lenders will run a credit check before granting you a loan.
Low credit scores can make it difficult to get a home loan or car loan. A very low credit score can also make it more difficult to qualify for a rental home. It can also increase the amount of security deposits you have to pay for utilities. A low credit score can also make it difficult to get a cell phone contract.
The utilization rate (CU) is another factor in your credit report. Your utilization rate should be less than 30%. A high utilization rate will lower your score. As with any number, you should pay your bills on time to improve your score. If your utilization rate is higher than 30%, your credit score is likely to suffer.
