Nowadays, it’s all about the credit score. The banks pull up a person’s credit history if they apply for a mortgage loan. If someone takes out a personal loan, pretty sure the creditor is well on their way to requesting that person’s credit record at Equifax. To get approved for credits or loans, the benchmark credit score should be 750. But these are not the only benefits of a 750 credit score.
Keep reading for the best perks that come with a 750 score.
Key Benefits of a 750 Credit Score
In the US, a 750 credit score is already considered above average and excellent for creditors. This score would cement a person’s credibility and trustworthiness as a debtor.
Here are some of the top benefits a 750 credit score will give you:
Higher Credit Limits
There are approximately over 46% of Americans who owned a credit score of 750 and above. Banks would eagerly push that pen and paper toward people with this credit score and stamp their request for an approved higher credit card limit. Aside from a strong chance of approval for a higher limit on a new credit card, the person could also request to increase their line of credit on an existing card.
Better Auto Loan Rates
Auto loan rates were over 6% in the US at the end of November 2022 and continued to increase months after that. Having a 750 credit score would come in handy. A 750 score is already considered a prime credit and could qualify a person for a lower interest rate, a bigger loan, and even score a more excellent car!
Higher Chance of Approval for Apartment Rent
The average number of home renters in the US is on the rise at 44 million. As the number of renters increases, so does the average credit score required for renting is also surging. So if a person is looking to land a beautiful apartment, they better get (and keep) that credit score up.
Better Mortgage Rate
If someone plans to apply for a home loan with a 750 credit score, now is an excellent time to use that score as an advantage. Mortgage rates have climbed up for a third-straight week, from a 6.32% to a 6.5% as of February 23. That 750 score could get easy or pre-approval for a home loan application and could also score a better deal, such as getting a lower interest rate.
Better Negotiating and Purchasing Power
Almost everything is in the palm of the hands of a 750 credit score holder. They can close their purchase easily because they’re already preapproved. Plus, they’d tend to get more offers and an advantage of bargaining for better deals!
How to maintain a 750 credit score (and increase it!)
Staying the course and sticking with an above-average and excellent credit score can be challenging but certainly not impossible. It should be the aim of anyone who wants to experience that financial freedom where they can sleep peacefully at night without worrying over bills to pay and badgering credit collectors.
Here are some tips for maintaining that 750 credit score:
- Pay bills on time – making timely payments is a must and a critical factor that determines the performance of a credit score. Any late or missed payments could affect more than one-third of the credit score, a huge deal breaker when maintaining an above-average credit score.
- Sign-up for automatic payments – signing up for automatic payments from checking accounts is simple and, best of all, convenient. It is also an excellent way to organize bill payments and a good credit management practice.
- Keep card utilization rates below 30% – a credit utilization rate measures how close a credit card is to becoming “maxed” out. Experts recommend keeping the utilization rate below 30% as a benchmark figure. Someone who constantly charges through a credit card and goes over the 30% is often thought of by creditors as a lending risk and will likely have difficulty repaying the amount owed.
A credit score can be a powerful tool in one’s economic and financial life if managed and used wisely. A low credit score could send someone spiraling down toward financial disaster, and a high credit score could give that person the life they’ve always dreamed of.
Unlocking the benefits of a 750 credit score is just the start of that financial independence. Maintaining and increasing that score ultimately leads to the best reward a 750 and above score could give – a life of financial freedom.
What does a credit score mean in the US?
A credit score is a scoring range of number between 300 to 850 that determines a consumer’s financial risk and creditworthiness. Lenders and credit bureaus use it to predict consumer credit behavior, such as the likelihood of paying a loan on time.
What is the lowest credit score in the US?
The lowest credit score is within the range of 300. Although, in reality, almost no one has that score. Still, any score below 580 is already a disadvantage when qualifying for loans or credit cards.
Do most Americans live on credit?
An Inside 1031 survey states that 49% of Americans use credit cards for essential living expenses. The group found the most credit card dependent are the GenZers at 61%, followed by the Millennials at 53%. Incidentally, this trend of credit card dependence continues to rise as daily expenses soar due to inflation, and more Americans have difficulty making ends meet by paying bills in cash.