750 Credit Score: The Top 5 Benefits of Financial Freedom
Have you ever wondered what the benefits of achieving a 750 credit score really are?
The truth is, credit scores play a vital role in your financial life. They are the foundation that lenders and financial institutions use to assess your creditworthiness.
A very good credit score really can open doors to favorable interest rates, loan approvals, and credit offers from multiple lenders. However, the opposite is true: a poor credit score can limit your options and cost you thousands of dollars in interest over time.
I’ll be discussing the ins and outs of credit scores, credit history, and credit reports, and specifically, what it means for you to have a 750 credit score. We’ll take a closer look at how credit scores are calculated, what factors influence them, and how they impact your financial goals.
So whether you’re just beginning to understand how credit scores work or already have an understanding but need a quick recap, keep reading to find out the benefits of a 750 credit score, and how it can help you achieve more financial opportunities.
What Are the Benefits of Achieving a 750 Credit Score?
There are several areas of your life where reaching a 750 credit score can benefit your financial health.
Here are 5 benefits of achieving a 750 credit score.
1. Better Loan Terms
This can be huge when making bigger purchases such as an auto loan or mortgage.
With a 750 credit score, you have more choices when it comes to the types of loans and interest rates you can qualify for.
This is especially important if you are looking to take out a loan over an extended period of time. The sheer amount of money you would save from high-interest rates alone is worth the effort to get your credit health in order.
Also, a great credit score can make it easier and quicker to get qualified for a loan in the first place.
2. Higher Credit Limits
The more lenders trust you the more money they are willing to let you borrow. This is pretty common even at a personal level with our friends and family.
Proving yourself to others is necessary for life and your creditworthiness is no exception.
Achieving a 750 credit score will allow you to qualify for new credit accounts with a higher credit limit which can lead to more opportunities when it comes to accessing the things you need or want to purchase.
3. Lower Insurance Premiums
In addition to lower interest rates, you can save money on your insurance premiums as well!
As we all know insurance can be quite a racket. Your rates can suddenly go up for many reasons beyond your control such as your location, age, and even for incidents that aren’t even your fault!
This is why it’s so important to give yourself the best leg up and lower your monthly payment as much as possible.
Your credit score measures your financial responsibility and insurance companies want to see that to determine your premiums.
Since you will always need insurance either for your vehicle, your home, or your life, it’s important to not only make an effort to improve your credit score but work hard to maintain it.
4. Premium Rewards Credit Cards
As if there weren’t enough perks already consider the fact that with a credit score as high as 750, you can not only qualify for a great interest rate on a credit card but also receive points and cash-back rewards!
Keep in mind that most credit cards that offer these benefits like travel points and special cashback rates won’t offer these same rates to folks with an average credit score. Consider yourself special!
This is all the more reason to repair your credit and keep your personal loan and credit card debt situation under control and sustained for the long haul.
As with any credit account, you want to make sure that you are using them responsibly. After all, what’s the advantage of all of these perks if you just end up canceling them out with interest hikes and late fees?
5. Peace of Mind
This is a big one and can really make a difference in living your day-to-day life.
Peace of mind is something that we all strive for and what better way to achieve it than with an excellent financial picture?
Having an excellent credit score snowballs into other benefits in your financial life including more money available for things that matter to you.
Things such as building your savings, contributing to investments, or taking a long-awaited vacation can easily be done from just the interest-rate savings alone.
I remember personally feeling a great calmness and sense of peace in my life once my debt was paid off, I had money in my savings and my credit score was to a level where I never had to worry about qualifying for a loan or credit card if I need to.
What Is a Credit Score?
While we are all judged by this number for our financial health some of us really don’t understand just what a credit score really is or what makes a bad or good credit score.
Basically, a credit score is a three-digit numerical value that represents how creditworthy you are to lenders.
This score can range anywhere between 300 and 850. Credit scores let lenders know how well you’ve handled your credit in the past and can make or break your opportunities to borrow more money in the present and future.
If your credit score is low this can cause an increase in your interest rate over the length of the loan making it more difficult to pay off over time.
Your best bet is to pay as much as you can on any high-interest accounts to reduce the amount of money you are throwing down the drain just for the privilege of borrowing it.
There are several factors that play a part in what determines your credit score such as payment history, length of credit history, credit utilization rate, types of credit accounts you’ve had, and if you had any recent credit inquiries.
FAQ
What credit limit can I get with a 750 credit score?
With a 750 credit score, the credit limit you can get still depends on various factors. Your income, existing debts, credit history, and the credit card issuer’s policies will play a role in your borrowing power.
In general, though, a 750 credit score is considered to be just in the excellent range which makes you eligible for higher credit limits compared to those with lower scores.
What Kind of Home Loan Can I Get With a 750 Credit Score?
If you have a 750 credit score, you may be wondering what kind of home loan you can qualify for.
Well, the good news is that with a credit score like that, you’ll likely have a lot of options!
You could easily be eligible for conventional loans, FHA loans, or even VA loans if you’re a veteran or active-duty military.
Of course, the specific type of loan you can get will depend on other factors as well, such as your income, debt-to-income ratio, and employment history.
This can be a plus since you will have more options to find the specific loan type that’s best for you making it better for your long-term plan.
However, a 750 credit score is considered in the excellent range and it puts you in a strong position to secure a home loan with much more desirable terms and interest rates.
Does a Credit Score Over 750 Matter?
If you’re wondering whether a credit score over 750 matters, the answer is definitely “yes!”
The good news is that you really don’t need to get much higher than a 750 credit score to get the best rates out there.
750-760 is really the door to receiving the greatest rates and loan approval odds out there, so strive to get your score between 750-800 and you’ll be golden!
With that said, anything over 800 is mostly a bragging right and you really won’t see much of a difference in what kinds of loans and credit cards you will qualify for.
I can say from experience that seeing my FICO score reach that 800 threshold really gave me a sense of accomplishment, so once you reach that 750 level, don’t rest on your laurels and see if you can go even higher!
Is an 800 Credit Score Rare?
While not necessarily rare, a score between 800 and 850 is considered “exceptional” and can be harder to achieve without long-term credit-building success.
According to experian.com, approximately 21% of consumers have a score in the “exceptional” range.
Interestingly enough this is the same percentage of consumers in the “good” range (670-739), so when put in that perspective, it seems very possible to get your credit score north of 800!
Conclusion
As I mentioned earlier, credit scores are crucial in determining your financial options. They’re a quick snapshot of how creditworthy you are and help lenders determine how much of a risk you pose as a borrower.
A higher credit score means you’re a lower-risk borrower, which can lead to better interest rates, more favorable loan terms, and higher credit limits.
A 750 credit score is considered a very good score in the high range and falls into the “excellent” range according to most credit bureaus.
As a matter of fact, it’s in the top 20% of credit scores, which means you’re in a great position to take advantage of the best credit offers available.
Here are a few ways that a 750 credit score can help you save money:
- Lower Interest Rates
- Better Credit Card Rewards
- Higher Credit Limits
- Easier Loan Approvals
- Better Purchase Decisions
Overall, having a 750 credit score puts you in a great position to achieve your financial goals.
Maintaining good credit habits, such as paying your bills on time and keeping your credit utilization low, will allow you to continue building your credit score and reaping the rewards that come with it.
