Is 724 a good credit score?
The FICO score range, which ranges from 300 to 850, is widely used by lenders and financial institutions as a measure of creditworthiness. As you can see below, a 724 credit score is considered Good.
|Credit Score||Credit Rating||% of population|
|300 – 579||Poor||16%|
|580 – 669||Fair||17%|
|670 – 739||Good||21%|
|740 – 799||Very Good||25%|
|800 – 850||Exceptional||21%|
724 Credit Score Credit Card & Loan Options
Most lenders will lend to borrowers with credit scores in the Good range. However, you still have room for improvement. With a score of 724, your focus should be on raising your credit scores before applying for any loans to make sure you get the best interest rates available.
Can you get a credit card with a 724 credit score?
Credit card applicants with a credit score in this range will be approved for most credit cards. However, some credit cards require a higher credit score.
If you are able to get approved for an unsecured credit card, remember to always make your monthly payments on time. Furthermore, keep your balance below 30% of your credit limit.
Can you get a personal loan with a credit score of 724?
Most lenders will approve you for a personal loan with a 724 credit score. However, your interest rate may be somewhat higher than someone who has “Very Good” or “Excellent” credit.
It’s best to avoid payday loans and high-interest personal loans as they create long-term debt problems and just contribute to a further decline in credit score.
See Also: 12 Best Personal Loans for Good Credit
Can I get a home loan with a credit score of 724?
The minimum credit score is around 620 for most conventional lenders, so you should be able to qualify. However, it’s worth noting that this credit score is not high enough to qualify for the best interest rates and terms on a conventional loan.
You may want to work on improving your credit score before applying for a mortgage loan to potentially qualify for better rates and terms. Additionally, some lenders may have a higher minimum credit score requirement, so be sure to shop around and compare offers from different lenders.
See also: 10 Best Mortgage Lenders for Good Credit
Can I get an auto loan with a 724 credit score?
Most auto lenders will lend to someone with a 724 score. However, if you want to ensure you qualify for the best interest rates, you will want to continue improving your credit score.
There are also several other factors that lenders consider when deciding whether to lend to you and at what interest rate. These factors include your income, employment history, debt-to-income ratio, and the amount of the loan you are requesting.
Take the time to understand your financial situation before applying for a loan so that you can present yourself as a responsible borrower and improve your chances of getting approved. You can also shop around and compare offers from multiple lenders to find the best deal for your situation.
See also: 10 Best Auto Loans for Good Credit
How to Improve a 724 Credit Score
Credit scores in the Good range often reflect a history of paying your bills on time. However, you still may have some late payments or charges offs reporting.
Here are five ways to improve your 724 credit score:
1. Dispute Negative Accounts on Your Credit Report
It’s a good idea to grab a copy of your free credit report from each of the three major credit bureaus, Equifax, Experian, and TransUnion to see what is being reported about you. If you find any negative items, you may want to hire a credit repair company such as Lexington Law. They can help you dispute them and possibly have them removed.
Lexington Law specializes in removing negative items from your credit report. With more than 18 years of experience, they achieved over 6 million removals for their clients in 2021 alone.
They can help you with the following items:
- hard inquiries
- late payments
- charge offs
2. Take Out a Credit Builder Loan
Credit builder loans are installment loans that are specifically designed to help people with poor credit build or rebuild credit history. In fact, credit builder loans do not require a credit check at all. Plus, it’s probably the cheapest and easiest way to boost your credit scores.
With credit builder loans, the money sits in a savings account until you’ve completed all your monthly payments. The loan payments are reported to at least one credit bureau, which gives your credit scores a boost.
See also: 5 Best Credit Builder Loans for 2022
3. Get a Secured Credit Card
Getting a secured credit card is a great way to establish credit. Secured credit cards work much the same as unsecured credit cards. The only difference is they require a security deposit that also acts as your credit limit. The credit card issuer will keep your deposit if you stop making the minimum payment or can’t pay your credit card balance.
4. Become an Authorized User
If you are close to someone who has excellent credit, becoming an authorized user on their credit account, is the fastest way to raise your credit scores. Their account information gets added to your credit report, which will raise your credit scores immediately.
5. Build Credit by Paying Your Rent
Unfortunately, rent and utility payments aren’t usually reported to the three credit bureaus. However, for a small fee, rent reporting services will add your payments to your credit report, which will help you improve your credit scores.
Where to Go from Here
It’s important to know which factors make up your credit score. As you can see in the image below, there are 5 factors that make up your credit score.
Pay down your balances and keep your credit utilization under 30%. It’s also wise to have different types of credit accounts to establish a solid credit mix because it accounts for up to 10% of your FICO score. So, you’ll want to have both installment and revolving credit showing up on your credit history.
Of course, you also want to focus on making timely payments from here on out. Even one late payment can be very damaging to your credit.
Length of credit history also plays an essential role in your credit scores. You want to show potential creditors that you have a long, positive payment history.
Building excellent credit doesn’t happen overnight, but you can definitely speed up the process by making the right moves. So visit Lexington Law for a free credit consultation and get started repairing your credit today! The sooner you start, the sooner you’ll be on your way to having exceptional credit.