Financial Planning and Analysis

What Can You Get With a 720 Credit Score?

A 720 credit score signals financial strength. See how it expands your access to beneficial products and services.

A credit score is a numerical representation of an individual’s creditworthiness, summarizing their past debt repayment behavior and indicating their likelihood to repay future obligations. This article clarifies the financial opportunities and advantages accessible to individuals with a 720 credit score.

What a 720 Credit Score Represents

A 720 credit score generally places an individual within the “Good” to “Excellent” range across common credit scoring models. FICO considers scores from 670 to 739 as “Good,” while VantageScore typically categorizes 661 to 780 as “Good.” This classification signals to lenders a strong track record of financial responsibility and a low risk of default.

While not a perfect score, 720 is significantly above the average FICO score of 717 and the average VantageScore of 700. This positioning enables access to a broader spectrum of financial products and services. It demonstrates a consistent history of managing credit effectively, viewed favorably by potential creditors.

Securing Major Loans

A 720 credit score provides substantial advantages when seeking significant lending products, often leading to more favorable terms and considerable savings.

Mortgages

Individuals with a 720 credit score are well-positioned to secure competitive interest rates on home loans. Lenders perceive these borrowers as lower risk, resulting in reduced monthly payments and significant savings on total interest paid. While the minimum credit score for a conventional mortgage can be as low as 620, a score of 720 or higher often qualifies for better rates. A 720 score can also facilitate access to various loan types, including conventional, FHA, and VA loans, potentially with more attractive terms regarding down payments. For example, some lenders might reduce the standard 20% down payment requirement for conventional mortgages to 15% for borrowers with scores above 720.

Auto Loans

A 720 credit score often enables access to highly competitive interest rates for vehicle financing, frequently categorized as “prime” rates. For new car loans, borrowers with excellent credit scores (720+) secured an average interest rate around 7.78% in the first quarter of 2025, while used car loans averaged around 8.41%. These rates are substantially lower than those offered to individuals with lower credit scores, resulting in significant cost savings. A strong credit score also increases the likelihood of loan approval, providing more financing options.

Personal Loans

Borrowers with a 720 credit score typically experience improved approval chances and can secure lower interest rates on unsecured personal loans. In 2024, borrowers with a score of 720 or higher received an average personal loan interest rate of approximately 11.81%, compared to significantly higher rates for those with lower scores. These loans can be utilized for various purposes, such as debt consolidation, home renovations, or other large purchases.

Exploring Credit Card Options

A 720 credit score opens up a wide array of credit card opportunities, offering enhanced benefits and terms.

Premium Credit Cards

Individuals with a 720 credit score are likely to qualify for premium credit cards that offer generous rewards programs. These programs can include high cash back rates, valuable travel points, or airline miles, maximizing returns on everyday spending. Many premium cards also provide substantial sign-up bonuses and exclusive perks, such as airport lounge access, comprehensive travel insurance, or concierge services.

Higher Credit Limits

A 720 score significantly increases the likelihood of being approved for higher initial credit limits. Higher limits can be advantageous for managing larger expenses and can positively impact an individual’s credit utilization ratio, which is the amount of credit used relative to the total available credit. Maintaining a low utilization ratio is beneficial for credit health and can contribute to further score improvements.

Favorable Annual Percentage Rates (APRs)

A 720 credit score generally qualifies individuals for lower interest rates on purchases and balance transfers. This can significantly reduce the cost of carrying a balance on a credit card. For those with credit scores in the 720-799 range, average credit card APRs were around 21.9% in May 2025, which is lower than rates for individuals with lower scores.

Balance Transfer Offers

Individuals with a 720 score often have enhanced eligibility for promotional 0% APR balance transfer offers. These offers allow consumers to transfer existing high-interest debt to a new card and pay it off without accruing interest for an introductory period, typically ranging from 12 to 21 months. This can be a strategic tool for consolidating and paying down existing debt more efficiently.

Broader Financial Opportunities

Beyond major loans and credit cards, a 720 credit score provides additional advantages in various everyday financial aspects.

Rental Applications

A strong credit score can make the process of securing rental housing smoother. Landlords frequently review credit reports as part of their tenant screening process to assess financial reliability. While there is no universal minimum, a score of 600 to 650 is often considered acceptable, with higher scores like 720 being highly favorable. A good credit score may also lead to reduced or waived security deposit requirements, saving upfront costs for renters.

Insurance Premiums

In many states, credit-based insurance scores are utilized by insurers to help determine premiums for auto and home insurance policies. A 720 credit score can often translate into lower insurance costs, as individuals with higher credit scores are statistically less likely to file claims, indicating a lower risk to insurers. This practice can result in notable savings on annual premiums.

Utility Deposits

Utility companies, including those providing electricity, gas, water, and internet services, may waive or reduce security deposits for individuals with strong credit scores. New customers are often assessed for a deposit to mitigate credit risk, but a favorable credit check can lead to this requirement being waived. This avoids tying up funds in deposits.

Previous

Can You Refinance a Car Lease? What to Know

Back to Financial Planning and Analysis
Next

Can You Use Student Loan Money for Anything?