760 Credit Score: What does it mean?

If you have a 760 credit score, you will generally have better luck with credit applications and loans. While there are many factors that lenders take into consideration, a good credit score correlates with a higher approval rate. You may also qualify for lower interest rates and more favorable loan terms. Having said that, there is still room for improvement even if your score is already good.

Let’s get started to understand what it means, what you can get with a 760 credit score and how to improve it.

Twenty-five percent of all consumers have FICO Scores in the Very Good range.

Is 760 a good credit score?

If you have a 760 credit score, that's actually a very good credit rating. This means you'll have plenty of loan options available to you at very cheap costs. Lenders like to work with borrowers who have Very Good credit because it's considered less risky.

Why a Very Good credit score is pretty great

If you have a Very Good credit score, it means you have a history of paying your bills on time and managing your credit well. Late payments and other negative information on your credit file are rare or non-existent, and if any do appear, they're likely to be from a few years ago.

Banks and credit card issuers like to lend to people with Very Good credit scores because they're seen as low-risk borrowers. This may mean you're able to get better loan terms than you could in the past, such as lower interest rates on refinanced loans, or chances to sign up for credit cards with rewards programs and low interest rates.

31.6% is the average utilization rate among consumers with 760 credit scores.

What percentage of people have a 760 credit score

Table 1: Percentage of U.S. population having a 760 credit score or more

Score range	Tier	U.S. population (%)
740-850	Very good & Excellent	46%
670-739	Good	21%
580-669	Fair	25%
300-579	Poor	16%

As you can see two-thirds of the people are in the top two tier, 67% in total. Very few of us are aware what is their status concerning credit score.

How to improve a 760 credit score?

Request your credit report and identify any negative items that are preventing your 760 score from increasing. Customize and send dispute letters to the relevant credit bureau/s requesting the removal of these negative items. A repair service will continue to dispute these items on your behalf until they are no longer harming your creditworthiness.

Although a 750 credit score can get us almost every loan, credit card or apartment rental.

1. Maintain different types of credit

It's important to have a good mix of different types of credit accounts, like credit cards, store credit, and installment accounts like mortgages, car loans, and student loans. This will help you to have a good credit score. You should avoid closing old accounts because this can hurt your credit score.

2. Make on-time payments

Paying your bills on time and in full is the best way to keep your credit score high. Even one late payment can cause your score to drop significantly. You can reduce the risk of this happening by signing up for auto-payments whenever possible. Late payments lower your credit score, so the sooner you can pay them off, the better. Charge-offs, collection accounts, and bankruptcies are even more damaging to your score, so it's best to avoid them if at all possible.

Those who have a credit score of 760 tend to pay their bills on time. Late payments are only reported on 22% of credit reports.

3. Take care keeping utilization rate low

It's a good idea to keep your credit utilization rate below 30 percent. This is because lenders may see a high credit utilization rate as a sign that your financial situation is unstable, even if that's not the case. However, people with the highest credit scores tend to keep their utilization rates much lower, often in the 5-10 percent range. So if you want to maintain a good credit score, it's worth aiming for a credit utilization rate in this range.

4. Time to build credit history is needed

Having a long credit history is one of the key factors in having a high credit score. This is because it shows that you have been responsible with credit for a long period of time. On the other hand, opening new credit accounts will lower your score, because it shows that you are taking on more debt. So if you want to maintain a good credit score, it's important to keep your old accounts open and active.

5. Don't cary a lot of debt

If you have any debt, it's important to make consistent payments toward paying it off. If you have a mortgage, an auto loan, or a personal line of credit, try to pay it off as quickly as possible. This will save you money in the long run and help you get out of debt more quickly.

How long does it take to get a 760 credit score?

If you started out with good credit, it shouldn't be too difficult to reach an 800 score, once you remove any negative marks. Three collection accounts, for example, could drop an 800 credit score down to the 600s. However, if you started out with weak credit (e.g., you don't have any revolving accounts), a single negative mark could lower your score well below 500.

What does a 760 credit score get you?

Table 2: What can you get with a 760 credit score

Item	Does 760 credit score qualifies?
No annual fee credit card	Yes
Credit card with 0% financing	Yes
Favorite store’s credit card	Yes
No-foreign-fee credit card	Yes
Airline/Hotel credit card	Yes
Initial credit card bonus	Yes
Any credit card	No
Apartment rental	Yes
Best personal loan rate	Maybe
Best mortgage rate	No
Auto loan 0% intro rate	Maybe

760 credit score credit card and loan options

If you have a credit score in the "Very Good" range (760 or above), most lenders will be happy to extend a loan to you. However, it's still important to focus on maintaining your credit status. This way, you can be sure to get the best interest rates available.

Credit Cards For 760 Credit Score

Approximately 34% of people with a 760 credit score have an auto loan as part of their credit portfolio, and 32% have a mortgage loan.

Mortgage rates for very good credit score

If you have a credit score of 760 or higher, you are eligible for any type of standard mortgage. Here is a list of all the different types of mortgages you can get:

VA loan: If you're a member of the military (current or former) or a family member of someone who is, you're eligible for a VA home loan from the US Department of Veteran Affairs.

Conventional mortgage: If your credit score is above 620, you should be able to get a conventional mortgage from most lenders. This is because 620 is the minimum score required by the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac). So if your score is above this number, you should not have any trouble getting a loan.

Jumbo loan: Jumbo mortgages are a great option for people who need to finance a larger home purchase. Unlike conventional conforming mortgages, jumbo mortgages exceed the maximum value that Fannie Mae and Freddie Mac will accept from lenders. Even though jumbo mortgages come with a higher risk, lenders will only consider giving you one if your credit score is very good. With a good credit score, you can qualify for a jumbo mortgage and get the financing you need to purchase your dream home.

FHA loan: If you have a very good credit score, you may be eligible for maximum financing on an FHA-backed mortgage (with a down payment of only 3.5%). It's worth noting that you won't be able to get an FHA loan if you've had a foreclosure in the past three years or filed for chapter 7 bankruptcy in the last two years.

USDA loan: If you have two tradelines that have been open for at least 12 months in the past two years, you'll meet the credit requirements for a USDA loan. Your credit score needs to be above 640 for you to be eligible. However, if you have outstanding judgment, you won't qualify. Additionally, if your credit history shows a foreclosure, bankruptcy, or debt settlement in the past 36 months, it might be difficult to get approved for this type of loan.

Auto loans for very good credit score

Typically, the best rates for auto loans are available to people with good-to-excellent credit. However, what is considered "good" credit can vary depending on the lender. In addition to base credit scores like FICO and VantageScore, there are also industry-specific scores that lenders may check. For example, some lenders may use the FICO® Auto Score.

If your credit score is 760 or higher, you should have no trouble getting an auto loan. You'll likely qualify for the lowest interest rates on the market, and you may even be eligible for 0% APR car loans that some new car dealers offer.

Depending on the loan term and how much you're borrowing, the difference in interest rates could amount to hundreds of dollars in savings. Nevertheless, you could save even more by waiting until your score reaches (781-850), at which point you'll be considered a "super-prime borrower."

Can I qualify a personal loan or credit card with a 760 credit score?

As a prime borrower, you'll have plenty of great options when you're looking for a new credit card. While you might not qualify for the absolute best rates that card issuers reserve for people with the very highest credit scores, you will still be eligible for some great cards.

Generally speaking, there are two main types of credit cards that people with a credit score of 760 can get: secured and unsecured cards.

Secured cards require a security deposit, which your lender will use as collateral. The amount you put down will usually be your credit limit. Secured cards are a low-risk option if you want to build credit while ensuring that you don’t spend beyond your means.

Unsecured cards don’t require a deposit. Your card issuer will set your credit limit according to how creditworthy they perceive you to be. In many cases, these cards offer cash back on certain purchases and other rewards.

If you have a good handle on your spending, then it makes sense to use your "very good" credit score to get an unsecured credit card. This type of card comes with potential rewards and a higher credit limit, both of which can be helpful.

Keep on going your very Good credit history

Utilization rate on revolving credit: The utilization rate is a measure of how close an individual is to "maxing out" credit card accounts. The Utilization rate can be calculated for each credit card account by dividing the outstanding balance by the credit limit and then multiplying by 100 to obtain a percentage.

It is also possible to figure out the total utilization rate by dividing the sum of all credit card balances by the sum of the spending limits for all credit cards (including credit cards with no outstanding balances). Most experts recommend keeping utilization rates at or below 30% in order to avoid lowering credit scores.

The closer any utilization rates get to 100%, the more it will hurt an individual's credit score. In fact, the utilization rate is responsible for nearly one-third (30%) of an individual's credit score.

Late and missed payments play a big role. The presence of late or missed payments on your credit report will have a negative impact on your score, accounting for more than one-third (35%) of your total score. If you have any late or missed payments in your history, this will drag down your score significantly. However, you can help to improve your score by making a habit of paying your bills on time. prompt payment of your bills will have a positive effect on your credit score, potentially helping you to access better loan terms and interest rates in the future.

Time is on your side.If you manage your credit carefully and make your payments on time, your credit score will gradually increase over time. In fact, if all other factors affecting your score are the same, a longer credit history will result in a higher score than a shorter one. If you're a new borrower, there's not much you can do to change this, except be patient and stay up to date with your bills. Length of credit history is responsible for up to 15% of your credit score.

Debt composition: If you're looking to improve your credit score, one of the best things you can do is to have a mix of different types of credit accounts. This includes both revolving credit accounts (like credit cards) and installment loans (like car loans or student loans). Credit mix is responsible for about 10% of your credit score, so it's definitely worth considering if you're trying to improve your credit rating.

Credit applications and new credit accounts: While applying for new credit or taking on additional debt may temporarily lower your credit score, it is still important to do so in order to improve your financial standing in the long term. Credit-scoring systems flag you as being at greater risk of being able to pay your bills when you apply for new credit or take on additional debt, but this is only a temporary measure. Your credit score will rebound within a few months as long as you keep up with all your payments. New credit activity can contribute up to 10% of your overall credit score, so it is still worth taking the opportunity to improve your financial situation.

Public records can have a significant negative impact on your credit score. Entries such as bankruptcies do not appear in every credit report, but they can overshadow all other factors and severely lower your credit score. A bankruptcy, for instance, can remain on your credit report for 10 years. If there are liens or judgments on your credit report, it's in your best interest to settle them as soon as possible.

In 2017, 158 million Social Security numbers were exposed, which is an increase of more than 800% compared with the number from 2016.

Protect your credit score from fraud

Identity thieves are always looking for easy targets, and people with Very Good credit scores fit the bill. To protect yourself from becoming a victim, consider using credit monitoring and identity theft protection services that can detect unauthorized credit activity. These services can alert you before criminals have a chance to take out loans in your name, and help you recover if your identity is stolen.

Credit monitoring is also a good idea for keeping tabs on your credit score. If you see your score start to slip, you can take action to improve it. And if you're working toward a FICO® Score in the Exceptional range (800-850), credit monitoring can help you track your progress.