720 credit score: A guide to credit scores
Quick insights
- A 720 credit score is considered good or prime, depending on the credit score model.
- Eligibility for new credit may depend on factors like income, debts and recent credit activity in addition to your credit score.
- Maintaining low balances and paying bills on time may help you maintain or improve your score over time.
Credit scores are one of many factors lenders use to help evaluate your borrowing history. When you have a 720 credit score, you are generally eligible to apply for a variety of financial products, from rewards credit cards to auto loans.
Understanding how a 720 score impacts you may help you make decisions about your next steps. Whether you are looking to apply for new credit or simply want to maintain your current standing, knowing how lenders view your score could be a useful starting point.
What does a 720 credit score mean?
Credit scores typically range from 300 to 850, acting as a numerical summary of your financial history. Major scoring models group these numbers into different tiers to help lenders assess risk.
For example, VantageScore's scoring ranges for VantageScore 3.0 are:
- Superprime: 781 to 850
- Prime: 661 to 780
- Near prime: 601 to 660
- Subprime: 300 to 600
And FICO's credit score ranges for FICO Score 8 are:
- Exceptional: 800 to 850
- Very good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 300 to 579
With a 720 credit score, you’re in the prime or good ranges, according to VantageScore and FICO scoring models, respectively. This may suggest to potential creditors that you have a track record of managing borrowed money responsibly. However, there is still room to climb into the very good or exceptional tiers, which could potentially give you access to additional borrowing options.
How lenders evaluate your 720 score
A 720 credit score may help you qualify for credit products, but it is rarely the only detail a financial institution reviews. Creditors typically look at your entire financial picture before making an approval decision.
When you submit an application, lenders might also review your current income, employment stability, and your debt-to-income ratio. If you have a steady paycheck and manageable existing debts, those factors can work alongside your good credit score to strengthen your application.
While a 720 score does not guarantee approval for every product, it generally provides you with a broader selection of financial options compared to scores in the fair or poor ranges.
Ways to help improve your credit score
If you want to help move your score into the next tier, focusing on the core components of your credit profile can be a helpful strategy. Here are a few common factors you may want to consider:
- Payment history: Payment history refers to your track record of paying credit obligations on time and in full, including credit card balances and loan installments. It also captures negative events such as late or missed payments, defaults, collections and bankruptcies.
- Credit utilization: Credit utilization is the amount of credit you use relative to your total available credit.
- Account age: The length of time your accounts have been open matters. Keeping older, well-managed accounts active may benefit your average credit age.
- Credit mix: Managing different types of accounts, such as a revolving credit card and an installment auto loan, can show lenders that you handle various forms of debt responsibly.
- Recent applications: Applying for several new lines of credit in a short period can result in hard inquiries, which might temporarily dip your score.
Building your score is a gradual process. You might consider setting up calendar alerts or automatic payments to help prevent missing a due date.
Additionally, tools like Chase Credit Journey® can help you monitor your progress. Credit Journey® is a free online tool for anyone 18 or older with a valid U.S. address and Social Security number (SSN), offering access to your credit score and personalized score improvement plans provided by Experian™—no Chase account required.
In summary
A 720 credit score can signal positive credit habits to lenders and may help you qualify for a range of credit products. Keep in mind that lenders will also weigh other aspects of your finances, such as your income and existing debt load, when you apply for new accounts.
By continuing to pay your bills on time, keeping your credit card balances low and practicing other positive habits, you may maintain your good standing and potentially reach even higher score tiers.
