What does a credit score of 770 mean? 

Is 770 good credit score?

A 770 credit score is generally considered very good – even significant. A good or excellent credit score may mean you are more likely to get approved for reasonable offers and rates regarding mortgages, car loans, and credit cards with rewards and other benefits.

 That is because a higher credit score may mean you are at a lower risk for lending. Lenders use this three-digit metric, calculated from all of the information collected on your credit report, to assess how likely they believe you are to default on a loan – and the higher the score, the better you appear to the lender.    

But having an excellent credit score does not mean that you are a sure thing, either: There is no guarantee, anyway, when it comes to getting approved for a loan. Credit scores may be a significant factor when applying for credit yes. But in reality, you have several different credit scores from various sources, and each draws from data in your other credit reports at the big consumer credit bureaus (Equifax, Experian, and TransUnion).   

How to get a 770 credit score

A credit score might count as “excellent” under one scoring model, but it might calculate differently under a different model, which weights some factors differently, leading to an entirely different score. In addition, scoring models and lenders can differ in their interpretations of what qualifies as “excellent”. 

You cannot take one single route to achieve a perfect credit score, but you should keep a few key factors in mind as you continue building and maintaining your credit. Even if you are holding steady with excellent credit, it is still good to be aware of these factors – especially if you are in the market for a new loan or are targeting a higher score.   

Credit utilization rate

Your credit utilization ratio is calculated by dividing how much of your credit you use compared to how much your credit is available. You should aim for it to stay below 30%, but generally speaking, the lower your utilization rate, the better.    

Having a higher credit limit and keeping credit card balances low are two ways you can help with credit utilization. If you need to reduce credit utilization quickly, you could ask the credit card issuer to increase your credit limit, but be aware that this may trigger a hard inquiry. If you are planning on applying for a new card shortly and your credit utilization is high, consider making a few early payments on your existing card balances first.   

If you pay off your balances before they are reported to the credit bureaus, this can help you reduce that credit utilization rate to as low a level as possible, potentially improving your score before submitting that new application. 

Payment history

Your payment history is a significant factor in your credit health. A single late payment could possibly weigh heavily on your score. If you miss your payment due date, it may be worth calling your credit card issuer to see if they are waiving the late fee, especially if this has not happened before.    

Credit mix

Another way to demonstrate your credit-using experience is by showing lenders you can navigate multiple types of credit. This can include credit cards, a form of revolving credit, and loans, such as mortgages, which you repay on an instalment basis. We do not usually recommend applying for credit to build your score, particularly if it will cost you. Also, applying for a new loan may mean that a hard inquiry is recorded in your credit report, which could hurt your credit.  

Age of your credit history

Another factor in your credit scores is how old your credit history is or how long you have had an active account. Cancelling your credit cards may affect your credit history age, 

mainly if they are cards you have had for some time, so consider this potential impact as you decide whether or not to cancel a card. 

Only time may make up for the effect of closing an older account, but you also lose credit limit amounts from the secured card, which could hurt your credit utilization rate. Keep in mind that your card issuers might choose to close your accounts if you are not actively using them, so keep any charges that you donat want to close active, at least for minimal purchases, every now and then.    

New credit

Applying for a new credit card or loan usually results in a hard inquiry, which could negatively impact your score. The effect of a tricky question is typically minor, but lenders may view multiple complex searches within a short time frame as a red flag. Ranges are determined from 2021 data from Credit Karma.   

Having excellent credit may mean you are more likely to be approved for the best auto loan rates, but that is not yet guaranteed. That is why it is essential to shop around and compare offers, so you find the best terms and rates on loans that are affordable for you. Even with excellent credit, you might get offered rates at car dealerships that are higher than what you would get from a bank, credit union, or online lender. Using our car loan calculator, you can find out what those different rates and terms might mean for your monthly car loan payments.   

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