Table of contentsIs 780 a good credit score?Why a Very Good credit score is pretty greatWhat percentage of people have a 780 credit scoreHow to improve a 780 credit score?How long does it take to get a 780 credit score?What does a 780 credit score get you?780 credit score credit card and loan optionsMortgage rates for very good credit scoreAuto loans for very good credit scoreCan I qualify a personal loan or credit card with a 780 credit score?Keep on going your very Good credit historyProtect your credit score from fraud
A 780 credit score can open up a lot of doors in terms of credit and loan opportunities. While lenders look at many factors when considering a credit or loan application, good credit scores usually mean higher approval odds. Good credit scores can also help you qualify for lower interest rates and better loan terms. Even if your credit score is good, though, there's always room for improvement.
Let’s get started to understand what it means, what you can get with a 780 credit score and how to improve it.
One out of every four consumers has a FICO® Score in the Very Good range.
Having a credit score of 780 is actually very good. You'll have plenty of loan options with very cheap interest rates. Lenders prefer to do business with borrowers who have Very Good credit because there is less risk the loan will go unpaid.
If you have a Very Good credit score, means you have a proven track record of paying your bills on time and managing your credit well. Late payments and other negative entries on your credit file are rare or nonexistent, and if any appear, they are likely to be at least a few years in the past.
People with Very Good credit scores are attractive customers to banks and credit card issuers. They typically offer borrowers better-than-average lending terms, which may include opportunities to refinance older loans at better rates than in years past, and chances to sign up for credit cards with enticing rewards as well as relatively low-interest rates.
The average utilization rate for people with credit scores of 780 is 31.4%.
|Score range||Tier||U.S. population (%)|
|740-850||Very good & Excellent||46%|
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.
Your credit score is important. It determines whether or not you'll be able to get loans, credit cards, and other financial products. If your score is low, it can negatively impact your life in a number of ways. That's why it's important to pull your credit report and identify any negative items that are keeping your score down. You can then dispute these items with the credit bureau and request that they be removed from your report. A repair service can help you with this process and continue to dispute items on your behalf until they're no longer harming your credit worthiness.
Although a 750 credit score can get us almost every loan, credit card or apartment rental.
If you want to maintain a good credit score, it's important to have a mix of different types of credit accounts, including revolving credit (e.g., credit cards and store credit) and instalment accounts (e.g., mortgages, car loans, and student loans). Avoid closing old accounts, as this can have a negative impact on your score.
Paying your bills on time and in full is always the best course of action. Even one late payment can cause your credit score to drop significantly. You can reduce the risk of this happening by signing up for auto-payments whenever possible. Late payments will lower your credit score, and the later the payment, the more damage it will do. Charge-offs, collection accounts, and bankruptcies are even more damaging to your score and should be avoided at all costs.
Those who have a credit score of 780 tend to pay their bills on time. Late payments are only reported on 21% of credit reports.
It's a good idea to keep your credit utilization rate below 30 percent. This means using less than 30% of your credit at any one time. If you go over this amount, it could give lenders the impression that your financial situation is unstable (even if it's not). However, people with the highest credit scores tend to keep their utilization rates much lower, often around 5%-10%. So if you're aiming for a top score, it's worth it to try and keep your usage rate low.
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 able to manage your finances responsibly over a long period of time. On the other hand, new accounts lower your credit score because they show that you are new to managing credit. So, if you want to boost your credit score, it's important to keep your old accounts open and in good standing.
You should try to pay off any debts you have as quickly as possible. This includes mortgages, auto loans, and lines of credit.
If you started out with good credit, it shouldn't be too difficult to reach an 800 credit score, as long as you remove any negative marks. For example, three collection accounts could lower a score of 800 down to 600. However, if you started out with weak credit (e.g. you don't have any revolving accounts), a single negative mark could bring your score down below 500.
|Item||Does 780 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|
|Best personal loan rate||Maybe|
|Best mortgage rate||No|
|Auto loan 0% intro rate||Maybe|
If you have a credit score in the Very Good range (780 or higher), most lenders will be happy to lend 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 possible.
Approximately 32% of people with a 780 credit score have an auto loan as part of their credit portfolio, and 31% have a mortgage loan.
If you have a credit score of 780 or higher, you're eligible for any type of standard mortgage. Here are some of 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. The US Department of Veteran Affairs backs these types of loans, so you can rest assured that you're in good hands.
Conventional mortgage: If your credit score is above 620, most lenders will be happy to give you a mortgage. This is the minimum score required by the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac). So if you're looking to buy a home, don't worry - you should be able to get a conventional mortgage without any trouble.
Jumbo loan: Jumbo mortgages are a great option for people who need to borrow more money than what Fannie Mae and Freddie Mac will accept. These loans come with a higher risk, but the reward is worth it because you will be able to get a bigger loan. If you have a very good credit score, then you should definitely consider getting a jumbo mortgage.
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 as low as 3.5%). It's worth noting that you won't be eligible for this type of loan if you've had a foreclosure in the past three years or filed for chapter 7 bankruptcy in the past 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. This is because your credit score is above 640. However, you won't be eligible if you have an outstanding judgment. You might also have a hard time qualifying if your credit history shows a foreclosure, bankruptcy, or debt settlement in the past 36 months.
People with good-to-excellent credit typically qualify for the best interest rates on auto loans. However, it is important to note that what is considered "good" credit can vary among auto lenders. In addition to the base credit-scoring models, such as FICO and VantageScore, there are also industry-specific scores that lenders could check. For example, FICO® Auto Scores.
If your credit score is 780, you will likely have an easy time getting an auto loan. In most cases, you will qualify for the lowest interest rates available. 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 are borrowing, the difference in interest rates could amount to hundreds of dollars in savings. However, you could potentially save even more by waiting until your score reaches 781-850. At this point, you would be considered a "super-prime borrower."
As a prime borrower, you have plenty of options when choosing a new credit card. While you might not qualify for the lowest rates, you will still be able to find a card with a great interest rate.
There are generally two types of credit cards available to people with a credit score of 780: secured and unsecured cards.
Secured credit 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 credit 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 good financial discipline and want to maximize the potential rewards and credit limit available to you, then it's a good idea to get an unsecured credit card. This type of card requires a "very good" credit score, but it can be worth it if you use it responsibly.
Utilization rate on revolving credit: Your utilization rate is a measure of how close you are to maxing out your credit card accounts. You can calculate it for each credit card account by dividing the outstanding balance by the credit limit and multiplying by 100 to get a percentage. You can also figure out your total utilization rate by dividing the sum of all your credit card balances by the sum of all their credit limits (including the limits on cards with no outstanding balances).
Most experts recommend keeping your utilization rates at or below 30% on individual accounts and all accounts in total to avoid lowering your credit scores. The closer any of these rates get to 100%, the more it will hurt your credit score. In fact, the utilization rate is responsible for nearly one-third (30%) of your credit score.
Late and missed payments play a big role. The presence of late or missed payments can have a significant negative impact on your credit score, accounting for more than one-third of the total score. If you want to improve your credit score, it's important to get into the habit of paying your bills on time. This will help you avoid late or missed payments in the future and improve your creditworthiness in the eyes of lenders.
Time is on your side.If you manage your credit carefully and make your payments on time, your credit score will improve over time. In fact, if all other factors are the same, a longer credit history will yield a higher credit score than a shorter one. If you're a new borrower, the best thing you can do is be patient and keep up with your bills. Length of credit history is responsible for up to 15% of your credit score.
Debt composition: The FICO® credit scoring system gives higher scores to those with multiple types of credit accounts, including both revolving credit (accounts like credit cards that let you borrow up to a certain limit and have monthly payments that vary) and installment loans (e.g., car loans, mortgages and student loans, with set monthly payments and fixed payback periods). The credit mix is responsible for about 10% of your credit score. So if you want a higher credit score, it's worth diversifying your credit portfolio.
Credit applications and new credit accounts: Although short-term negative effects may occur on your credit score when you apply for new credit or take on additional debt, it is important to remember that credit scores typically rebound within a few months. As long as you keep up with all of your payments, new credit activity can actually contribute up to 10% of your overall credit score.
While public records appearing on your credit report can have negative impacts on your score, it's important to remember that not all entries are created equal. Bankruptcies, for instance, while they can lower your score significantly, will only appear on your report for a maximum of 10 years. In comparison, other entries like liens or judgments can stay on your report indefinitely unless you take action to settle them. So if you have any public records on your credit report, it's in your best interest to take care of 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.
Even if you have a Very Good credit score, you could still be at risk for identity theft. Criminals could hijack your credit history and take out loans in your name without you even knowing. To protect yourself, consider using credit monitoring and identity theft protection services that can detect unauthorized activity. These services can alert you before criminals can do any damage, and help you recover if your identity is stolen.
Credit monitoring is also a great way to keep track of your credit score. If your score starts to slip, you'll be alerted and can take action to improve it. With credit monitoring, you can also see your progress as you work toward a FICO® Score in the Exceptional range (800-850).
Share this article