Is a 767 Credit Score Good? What It Means for You
Explore the significance of a 767 credit score, its position within standard ratings, and how it shapes your access to financial opportunities.
A credit score is a numerical representation of an individual’s creditworthiness, used to predict the likelihood of repaying borrowed money on time. This three-digit number, typically ranging from 300 to 850, is derived from information contained in credit reports. Lenders, such as banks and credit card companies, rely on these scores to assess the potential risk associated with extending credit. A credit score plays a significant role in various financial decisions, influencing access to loans, credit cards, and their associated terms.
Understanding Credit Score Ranges
Credit scores are categorized into distinct ranges, assessing an individual’s credit profile. While both FICO and VantageScore models are widely used, they have slightly different categorizations. For FICO scores, a score of 670 to 739 is considered “Good,” and 740 to 799 is “Very Good.” “Exceptional” FICO scores are 800 and above.
VantageScore has ranges such as “Good” (661-780) and “Excellent” (781-850). A credit score of 767 falls into the “Very Good” category for FICO scores and the “Good” category for VantageScore. This places it well above the average U.S. FICO score, which was 715 in 2023. Such a score indicates a strong history of responsible credit management.
What a 767 Score Means for You
A 767 credit score positions individuals favorably for various financial opportunities. This score level suggests a low credit risk to lenders, leading to more appealing interest rates on loans. For instance, a conventional mortgage requires a minimum score of 620 for approval, and a 767 score makes approval highly likely. While the absolute lowest interest rates are reserved for scores of 800 or higher, a 767 score can still secure competitive offers.
Individuals with a 767 score are eligible for lower interest rates on auto loans, saving thousands of dollars over the loan term. Credit card approval for premium cards with attractive rewards programs or lower annual percentage rates (APRs) is more accessible. Beyond traditional lending, a strong credit score can influence rental applications and even insurance premiums, as insurers use credit information to help set rates for auto and homeowners coverage.
Factors Influencing Your Credit Score
Elements contribute to a credit score, each carrying a different weight. Payment history is the most impactful factor, accounting for 35% of a FICO score and up to 40% of a VantageScore. Consistently making payments on time demonstrates reliability, while a single late payment can significantly harm scores and remain on a credit report for up to seven years.
Amounts owed, also known as credit utilization, is another significant factor, making up 30% of a FICO score and 20% of a VantageScore. Keeping balances low, ideally under 30% of the credit limit, can positively influence this component. The length of credit history accounts for 15% of a FICO score and approximately 20% of a VantageScore. It considers the age of the oldest account, the newest account, and the average age of all accounts, with longer histories viewed more favorably.
The credit mix, the variety of credit accounts like revolving credit (e.g., credit cards) and installment loans (e.g., mortgages, auto loans), makes up 10% of a FICO score. Demonstrating responsible management of different credit types can be beneficial. Lastly, new credit, including recent applications and new accounts, impacts 10% of a FICO score and around 5% of a VantageScore. While a single hard inquiry might reduce a score by a few points, multiple inquiries in a short period can have a greater effect.