What does a credit score of 715 mean?
A credit score of 715 is considered good by many lenders. The range of “good” scores was determined from the 2021 data from Credit Karma.
You may easily qualify for lower-interest and better-term mortgages and car loans with good credit. You also may get approved for credit cards with valuable sign-up bonuses and attractive rewards programs.
Why are those three-digit numbers so crucial for your financial wellbeing?
Well, lenders use your credit score to measure how likely you are to repay any money loaned to you. So, having a good credit score may give the lender confidence to lend you money on terms that are good for you. It may not be enough to unlock the best financial products or words, but it is a benchmark that indicates that you are on the verge of greatness.
Here’s what else you need to know about establishing, maintaining, and using a good credit score.
Can I get a credit card with a credit score of 715?.
Although there is no sure-fire way to reach a perfect credit score, there are many things you can do to get yourself into an excellent place to establish and keep credit in the band.
Most important, you will want to practice sound credit habits. Even with all the different credit scores in the world–thanks to various scoring models and various data from the credit bureaus–some common principles hold true. Most credit scores consider at least five major factors of a loan. Here’s a breakdown of each element and how they may impact your overall credit.
One of the most critical factors in determining your overall credit health is your history of making timely payments. It is as simple as that: Paying bills on time every single time goes a long way in helping you build credit. On the downside, even one late payment can substantially impact your score (and remain on your report for up to seven years).
You may already know that paying your credit card bill monthly helps you avoid interest charges.
But doing so can also help lower your credit utilization ratio, the critical measure that tracks how much of your available credit you are using at any given moment. Most experts recommend keeping your credit utilization ratio under 30%, but keeping it even lower is a good practice.
Length of credit history
The longer you can show a consistent track record of positive credit utilization, the better. The age of your credit history, or the length of time you keep an account open, may indicate to lenders that you have a more substantial track record of using credit.
Credit mix and types
It is helpful to show lenders you are adept at juggling different types of credit, including revolving credit (such as credit cards) and fixed-rate loans (such as car loans and mortgages). But since it typically has less of an impact on your credit, we recommend against taking on loans you donat need just to build credit.
When you apply for a new credit card or loan, your credit report typically gets a hard inquiry. On its own, a single complex search should have only a minor impact on your credit. But the more difficult questions you collect, the more significant that impact can be. And too many hard inquiries in a short time frame can cause some lenders to pause, so it is best to apply for credit products only when you need them and when you feel confident about the likelihood of getting approved.