Is a 749 Credit Score Good? What to Know

A credit score is a numerical representation of creditworthiness. This three-digit number, typically 300 to 850, helps lenders assess a consumer’s likelihood of repaying borrowed funds on time. It predicts credit behavior, guiding financial institutions in decisions for loans, mortgages, or credit card applications. Lenders use these scores to evaluate risk and determine terms and interest rates for credit products.

Understanding Credit Score Ranges

Credit scores are generally categorized into distinct ranges, with two prominent models being FICO and VantageScore. For FICO Scores, the “Good” range is usually considered 670 to 739, while “Very Good” falls between 740 and 799. Scores of 800 and above are classified as “Exceptional” or “Excellent.”

VantageScore defines “Good” credit as 661-780 and “Excellent” as 781-850. A 749 credit score typically places an individual firmly within the “Very Good” category for FICO and the upper end of “Good” or even “Great” for VantageScore. This score signals to lenders a low level of risk, indicating a strong history of responsible credit management.

This level of creditworthiness suggests that an individual has demonstrated consistent on-time payments and effective management of credit accounts. Lenders often view such scores favorably, leading to more advantageous financial opportunities.

Implications of a 749 Score

A 749 credit score opens various financial doors, providing access to more favorable terms on credit products. Individuals with this score can typically secure competitive interest rates on significant loans, such as mortgages and auto loans. A higher credit score directly correlates with lower interest rates, which can result in substantial savings over the life of a loan. New car buyers with excellent credit might see average interest rates around 5.18%, while those with lower scores face significantly higher rates.

Borrowers with a 749 score are also well-positioned for approval on credit cards that offer premium benefits. This includes cards with higher credit limits, lower annual percentage rates (APRs), and more rewarding benefits programs like cash back or travel perks. Lenders perceive these applicants as lower risk, making them attractive candidates for their best offerings. This extends beyond major loans and credit cards to other financial advantages.

A strong credit score can also influence other aspects of a consumer’s financial life, such as potentially lower insurance premiums. Additionally, it can streamline approval processes for rental applications or utility services, as landlords and service providers often review credit history. While a 749 score is highly advantageous, specific offers remain subject to the individual lender’s criteria, broader economic conditions, and the applicant’s complete financial profile, including income and debt-to-income ratio.

Key Factors Determining a Credit Score

A credit score like 749 is a reflection of several contributing elements within an individual’s credit report. Payment history holds the most weight in both FICO and VantageScore models, accounting for approximately 35% to 41% of the score. Consistently making on-time payments across all credit accounts is important for maintaining a strong score. Missing payments, even once, can significantly impact this factor.

Credit utilization is another highly influential factor, representing the amount of credit used relative to the total available credit. This typically accounts for 20% to 30% of a FICO Score and 20% to 34% for VantageScore, including balances and available credit. Keeping credit card balances low, ideally below 30% of the available limit, demonstrates responsible credit management. The length of credit history also plays a role, generally comprising about 15% of a FICO Score and 21% for VantageScore. A longer history of responsible credit use is seen positively by scoring models.

The credit mix, which considers the variety of credit accounts an individual manages (e.g., installment loans like mortgages or car loans, and revolving credit like credit cards), contributes around 10% to a FICO Score and is part of the depth of credit for VantageScore. Demonstrating the ability to handle different types of credit responsibly can benefit a score. Finally, new credit, including recent applications and newly opened accounts, accounts for approximately 10% of a FICO Score and 5% to 11% for VantageScore. Numerous new credit inquiries in a short period can temporarily lower a score, as it may suggest increased risk to lenders.