Is a 740 credit score good for a 21 year old?
Your FICO® Score falls within a range, from 740 to 799, that may be considered Very Good. A 740 FICO® Score is above the average credit score. Borrowers with scores in the Very Good range typically qualify for lenders' better interest rates and product offers.
Consider yourself in “good” shape if your credit score is above the average for people in your age group. Given that the average credit score for people aged 18 to 25 is 679, a score between 679 and 687 (the average for people aged 26 to 41) could be considered “good”.
With the FICO credit scoring model, credit scores ranging from 300 to 579 are considered poor. Scores that range from 580 to 669 are considered fair. Anywhere between 670 to 739 is considered good. A credit score between 740 to 799 is considered very good.
You should be able to get approved for a decent car loan with a 740 credit score, considering that more than 60% of all auto loans go to people with credit scores below 740.
With a FICO score of 740 or higher, you're likely to get the best jumbo mortgage rates. Using a mortgage calculator can make clear how even a slightly lower rate can make a big difference.
A breakdown of younger generation credit scores
Millennials average a credit score of 690, and Gen Zers come in at 680. For reference, the qualifying credit score for most conventional home loans is 620, according to Rocket Mortgage.
Your FICO® Score falls within a range, from 740 to 799, that may be considered Very Good. A 750 FICO® Score is above the average credit score. Borrowers with scores in the Very Good range typically qualify for lenders' better interest rates and product offers.
It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores.
Plus, you're likely to get approved for lower interest rates, which can save you money in the long run. According to the latest credit score statistics, the average FICO score is 716, so a 720 is slightly above average. 67% of Americans have a score in this range or higher based on data from Experian®.
You can borrow $50,000 - $100,000+ with a 720 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
How to get 800 credit score at 21?
Making on-time payments to creditors, keeping your credit utilization low, having a long credit history, maintaining a good mix of credit types, and occasionally applying for new credit lines are the factors that can get you into the 800 credit score club.
With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000).
The average American credit score
Some states have higher or lower average credit scores, too. For example, Minnesotans on average have the highest FICO credit scores in the nation at 733. As of this report, 55% of Americans have a FICO score of 740 or higher.
It's essential to be knowledgeable about how your auto loan process will be different than someone with a higher score. You might not have the same options, but you can still get an auto loan with a 600 credit score.
Credit score: You might need a credit score of at least 740 to be considered for a 0% APR loan. The minimum credit score depends on the dealership and the car you're interested in purchasing.
At 20 years old, you will likely have a lower score due to the shorter length of credit history and income. The average FICO credit score for this age range is around 679, which is considered "good" or "very good" but is relatively lower than someone older with more credit history.
Since jumbo mortgages allow a high loan amount, lenders can be stricter about their minimum credit score requirements. For example, you may need a 740 credit score if you choose a fixed or adjustable-rate 15-year jumbo loan.
Average Credit Score for Ages 18-25 (Generation Z)
The average FICO® credit score for those aged between 18-25 is 679. Consumers in this age bracket are only starting to build their scores. These consumers may have a low-limit student credit card and are making payments towards their student loans.
Typically, only people over the age of 18 have a credit score — but it is possible for minors to have a credit report. A person under 18 can have a credit report if : Their identity was stolen and used to open one or more credit accounts. A credit agency erroneously created a credit profile in the minor's name.
According to credit bureau Experian, a good credit score is 700 or above. But if you're in your 20s and just starting out, a score of 700 or higher may be tough as you're just establishing your credit history.
How rare is a 750 credit score?
Your credit score helps lenders decide if you qualify for products like credit cards and loans, and your interest rate. You are one of the 48% of Americans who had a score of 750 or above as of April 2023, according to credit scoring company FICO.
What Credit Score Do You Start With? As someone who's never taken any form of credit, you, in all likelihood, have no credit score at all. This is because your credit score depends primarily on your payment history and credit utilization. These factors are not established until you obtain your first credit product.
Across the different age groups in 2022, Gen Z, ages 18-25, had the lowest average credit card debt, at $2,854. But Gen Z also saw the biggest credit card debt increase over the previous year, at 25.1%. Millennials were close behind, with a 23.4% increase.
Your FICO® Score falls within a range, from 740 to 799, that may be considered Very Good. A 740 FICO® Score is above the average credit score. Borrowers with scores in the Very Good range typically qualify for lenders' better interest rates and product offers.
Absolutely. Your 720 credit score will qualify you for an auto loan, assuming your income justifies it. However, it's important to realize that your credit score can make a big difference in the interest rate you get. And this is especially true in auto lending.
