Credit Score Range
A 749 credit score falls within the range of 740 to 799, which is considered Very Good according to the Fair Isaac Company (FICO), the leading provider of credit scores (Experian, 2023). This score is above the average credit score of 714 (Experian, 2023).
Key Facts
- Credit Score Range: A credit score of 749 falls within the range of 740 to 799, which is considered Very Good.
- Above Average: A 749 credit score is above the average credit score of 714.
- Qualification for Better Rates: Borrowers with credit scores in the Very Good range typically qualify for better interest rates and product offers from lenders.
- Utilization Rate: Among consumers with a credit score of 749, the average utilization rate is 31.8%.
- Timely Bill Payment: People with a credit score of 749 typically pay their bills on time, with late payments appearing on just 23% of their credit reports.
- Credit Portfolio: Individuals with a 749 credit score often have credit portfolios that include auto loans (36%) and mortgage loans (33%).
- Factors Affecting Credit Score: Factors that can have negative effects on a Very Good credit score include high utilization rates on revolving credit, late or missed payments, short credit history, debt composition, and new credit accounts.
- Guarding Against Fraud: People with Very Good credit scores can be attractive targets for identity thieves. Using credit-monitoring and identity theft-protection services can help detect unauthorized credit activity.
Qualification for Favorable Terms
Borrowers with credit scores in the Very Good range typically qualify for better interest rates and product offers from lenders (Upstart, 2022). This means that individuals with a 749 credit score are more likely to secure favorable terms on loans, credit cards, and other financial products.
Utilization Rate
The average utilization rate for consumers with a 749 credit score is 31.8% (Experian, 2023). Utilization rate refers to the amount of available credit that is being used. Keeping utilization rates low is important for maintaining a high credit score.
Timely Bill Payment
People with a 749 credit score typically pay their bills on time (Experian, 2023). Late payments can significantly lower credit scores, so it is crucial to make all payments by their due dates.
Credit Portfolio
Individuals with a 749 credit score often have credit portfolios that include auto loans (36%) and mortgage loans (33%) (Experian, 2023). Having a diverse mix of credit accounts can positively impact credit scores.
Factors Affecting Credit Score
Several factors can have negative effects on a Very Good credit score, including:
- High utilization rates on revolving credit
- Late or missed payments
- Short credit history
- Debt composition
- New credit accounts (Experian, 2023)
Guarding Against Fraud
People with Very Good credit scores can be attractive targets for identity thieves (Experian, 2023). Using credit-monitoring and identity theft-protection services can help detect unauthorized credit activity and protect against fraud.
Conclusion
A 749 credit score is considered Very Good and is above the average credit score. Individuals with this score typically qualify for favorable terms on loans and credit cards. To maintain a high credit score, it is important to keep utilization rates low, pay bills on time, and avoid taking on excessive debt. Additionally, using credit-monitoring and identity theft-protection services can help protect against fraud.
References
- Experian. (2023). 749 Credit Score: Is it Good or Bad? Retrieved from https://www.experian.com/blogs/ask-experian/credit-education/score-basics/749-credit-score/
- Credit Karma. (n.d.). What’s a 749 Credit Score? Retrieved from https://www.creditkarma.com/credit-scores/749
- Upstart. (2022). 749 Credit Score: What You Need to Know. Retrieved from https://www.upstart.com/credit-score/749-credit-score
FAQs
What is a 749 credit score considered?
A 749 credit score is considered Very Good according to FICO, the leading provider of credit scores.
Is a 749 credit score good?
Yes, a 749 credit score is above the average credit score of 714 and is considered to be good.
What are the benefits of having a 749 credit score?
Individuals with a 749 credit score typically qualify for better interest rates and product offers from lenders.
What factors can negatively affect a 749 credit score?
Factors that can negatively affect a Very Good credit score include high utilization rates on revolving credit, late or missed payments, short credit history, debt composition, and new credit accounts.
How can I maintain a 749 credit score?
To maintain a high credit score, it is important to keep utilization rates low, pay bills on time, and avoid taking on excessive debt.
How can I improve my credit score from 749 to Excellent?
To improve your credit score from 749 to Excellent, you can focus on reducing your credit utilization, making all payments on time, and building a longer credit history.
What is a good credit utilization ratio for a 749 credit score?
For a 749 credit score, it is recommended to keep your credit utilization ratio below 30%.
What types of loans can I qualify for with a 749 credit score?
With a 749 credit score, you are likely to qualify for a wide range of loans, including personal loans, auto loans, and mortgages, with favorable interest rates.