October 1, 2024 · 11 mins read
Is a 750 Credit Score Good? What it Means for You
Santosh Kumar
Is 750 a good credit score? A credit score of 750 is generally considered an excellent score regarding your financial status as a borrower. In simple terms, it means that you are reliable with money lent to you and can be trusted for credit and loans. However, to understand how and why a credit score is considered good, we need to understand the basics and why it is important to have and maintain what is considered a good score.
A credit score is a statistical score that ranges from 300-850, which is a representation of your creditworthiness. A credit score is calculated on the basis of various factors like payment history, loan history, debt amount, length of credit, types of credit, recent inquiries on credit and your history of loan repayment. This data is used to analyse and assess your current credit status, allowing lenders to evaluate your credit score and offer you the same kind of financial treatment in terms of loan amount and interest rates.
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Let us take a look at this table to understand credit score brackets and how they are rated in terms of creditworthiness
Credit Score Bracket: 600 and lower
Creditworthiness: Poor and needs to be worked upon
Credit Score Bracket: 600-649
Creditworthiness: Below average and Has room for improvement
Credit Score Bracket: 650-699
Creditworthiness: Above average
Credit Score Bracket: 700-749
Creditworthiness: Good
Credit Score Bracket: 750-900
Creditworthiness: Excellent and top-tier creditworthiness
Below is an approximate breakdown of the many factors that affect your credit score-
1. Roughly 35% of your credit score is calculated based on your payment history, so you need to ensure timely payment of loans and credit card bills.
2. Another 30% is reserved for your credit utilisation, which should generally be 30% or less than your credit card limit.
3. 15% of your credit score comes from the history or age of your credit accounts. Here, the longer your credit history, the better your credit score.
4. The next 10% comes from your range of credit accounts and how diverse they are, such as credit cards, loans, EMIs, mortgages, etc. In this case, the more, the merrier.
5. The last 10% is reserved for recent credit inquiries and new credit accounts opened. This will also affect your credit score.
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1. A Credit score is essentially a window to your financial stability as a lender. It impacts your finances in many ways:
2. Your credit score helps lenders decide whether to approve or reject your loan application. A higher score ensures more chances of approval and fewer chances of rejection.
3. A higher credit score also means a lower rate of interest when it comes to loan repayment. This is particularly beneficial in the long run and can save you money on long-term loans like home loans, mortgages, property loans, etc. Sometimes, it can also determine your automobile or home insurance premium.
4. A higher credit score ensures greater financial flexibility, as it allows you to have a higher credit potential on credit cards.
5. Besides these, although not common, in some cases, renters, landlords, and potential employers may also check your credit score, especially for jobs that are high-profile and require some sort of financial responsibility.
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Is 750 a good credit score? A credit score of 750 would place you in the top-tier bracket. It means that your credit score is great and that you can avail yourself of many benefits when it comes to getting loans and credit, whether for personal or business reasons.
Having a 750 Credit Score can have both short-term and long-term financial benefits for an individual. It would make a huge impact on your financial health. Let us take a closer look at what areas it would affect-
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1. It provides easy access to credit with easier loan approval processes. It certainly gives you an edge—an added boost to avail of better credit limits, loans of higher sums, etc.
2. It gives you a higher credit limit, which can support big expenses and purchases. This means you can indulge in shopping and other expenses through your credit card without worrying about your spending limit. The higher your score, the greater your spending limit.
3. It helps you secure lower interest rates on loans and credit card bills. Not only that, you also get lower rates of interest on mortgage insurance as well.
4. With a higher credit score, you can also opt for a longer repayment period, reduced fees, and greater flexibility on payment options. Your credit score reflects your dependability, and lenders view you as a reliable borrower, allowing greater flexibility in many aspects.
5. A credit score of 750 would give you the confidence to negotiate for better terms and rates on credit cards and loans. You receive special treatment and are also considered for better offers and promotions. There are better reward points as well as other perks like access to a lounge, a special discount on travel expenses, etc.
6. A higher credit score can also affect your renting and leasing opportunities. Owners sometimes check your credit score to see whether you are a reliable tenant or you have some liability as a renter. Besides, some organisations may also want to check on your credit score if your position entails dealing with finances. This is done to ensure an additional layer of security, and having a good credit score would certainly reflect well on your CV in some instances.
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A credit score of 750 can open many doors of possibilities for a person. It can help you secure a home loan and get better mortgage rates. This, in turn, can be a huge opportunity to invest in real estate and property, which are known to be the best investment options for the long run. A strong credit score facilitates new business ideas, making obtaining loans easier and smoother. With a good Credit Score- you acquire financial stability and can build a good financial future for yourself.
A good credit score would mean your finances are secure and stable. It would be a reflection of your strong financial standing. A financial emergency would be less stressful, and acquiring credit would be easier and more accessible. Another advantage is that a good credit score would help you sort out your finances after retirement and help you create a buffer against unnecessary hassle and financial emergencies. A better credit score would make Minor financial emergencies easier to handle.
A good credit score dictates a good quality of life for any individual. Financial stability and independence are huge contributors to a good life, and having a good credit score ensures that your finances are well-managed and that you do not have to worry about money, thereby helping you achieve a stress-free life.
Having a credit score of 750 means that you have already achieved a good status as a borrower. This will further solidify your financial position, and with proper utilisation of this credit score and by maintaining it with dedication- it will open a sea of opportunities for growth and expanding your wealth. A good credit score will automatically project an image of good financial ethics and a sound understanding of the credit system- this, in turn, will greatly affect your prospects of achieving overall financial growth.
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Is 750 a good credit score in India? This is a question that many people ask to maintain a good credit score for access to better offers and rates. However, no single method or a sure-shot way exists to arrive at this destination. It certainly cannot be achieved overnight, nor can it be achieved by passing any sort of examination. To achieve a 750 credit score, you must consistently work towards building a good portfolio as a borrower. It takes time, which would vary depending on the individual, and it may not be a graph that always goes upwards with foreseeable and unforeseeable circumstances leading to ups and downs in your score. However, you can build a good credit score of 750 and upwards with time, good financial decisions, and good habits.
If you are a beginner, these steps might be helpful to build and maintain a good credit score-
1. Start by opening a credit account by acquiring a credit card, but use it wisely and follow proper financial etiquette.
2. Make timely payments on all your bills to ensure a good payment history.
3. Maintain a 30% or lower credit utilisation score per your credit limit.
4. Keep a close watch and monitor your credit report.
5. Build a long history of credit by keeping old accounts open
6. Try to minimise hard inquiries to the bare minimum.
7. Avoid taking out multiple credit cards and maxing out on their usage.
8. Try to maintain a hybrid of loans and credits, such as diversifying by utilising a car loan and a revolving credit like credit card purchases. This will also positively reflect on your credit score.
An individual with a credit score of 750 can avail a variety of loans and credits like-
1. They can easily obtain mortgage loans to invest in and build new houses and negotiate for a lower interest rate.
2. Automobile loans with competitive interest rates are another type of loan they can avail themselves of.
3. Personal loans can also be obtained often without collateral, with lower rates of interest and lower and more long-term payback options.
4. Individuals with a 750 credit score can also avail themselves of Credit Cards with good deals, higher limits, and several added perks and benefits.
5. Finally, they can secure student loans on favourable terms, with lower interest rates and flexible payment options.
A good credit score ensures that loan availing becomes easier and options wider. You can choose a loan or credit card that fits your requirements and needs – something that serves you the best. It gives you an upper hand on financial decisions and ensures financial stability in that aspect.
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Achieving a credit score of 750 is a great financial accomplishment that will open a world of financial opportunities and new possibilities for an individual. However, it can significantly affect your credibility. A credit score is like a grade sheet through which lenders will evaluate and analyse you as a potential borrower.
So, is 750 a good credit score in India? A credit score of 750 would put you in a good bracket, making it easier for you to avail of loans, negotiate interest rates and secure some very good promotional deals, offers and discounts. Whether it is for short-term benefits during shopping, credit card usage, or long-term prospects like establishing a new business or investing in a house or automobile- a 750 credit score gives you a pass to have access to special treatment. It means you do not have to start from scratch; it establishes your credibility and shows your creditworthiness regarding your finances. A credit score of 750 is undoubtedly a good achievement, and you could wear it as a badge of honour in banking and finance.
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What does having a Credit score of 750 indicate?
A Credit Score of 750 indicates a good credit history and creditworthiness. It indicates that you are a reliable borrower.
Is having a 750 credit score beneficial?
Having a 750 credit score comes with certain benefits, like a substantial credit limit, added perks on your credit card, pre-approved loans, and lower rates of interest with flexible payback periods.
Does closing old accounts help you achieve a higher credit score?
No, closing old accounts is not advised. Instead, you should have a long-term relationship with your bank to establish a good credit score.
Is 750 a good credit score or average?
A credit score of 750 is considered to be an excellent score.
How can you improve your credit score to 750?
To achieve a credit score of 750 and higher, you need to have a good credit history, make payments on time, utilise your credit limit wisely, and be responsible with your credit card usage.
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