762 credit score: A guide to credit scores
Quick insights
- A 762 credit score is considered to be “good” or “very good” depending on the scoring model used.
- You may have a better chance of getting approved for loans and credit cards than someone with a lower score.
- It’s possible to further improve your score with some helpful tips, such as lowering your credit utilization ratio.
Whether you’re looking to apply for a loan, mortgage, credit card or make some other financial choice, it can be essential to know your credit score and understand its impact. In this article, we’ll explore the specifics surrounding a 762 credit score.
Understanding a credit score of 762
A 762 credit score falls into a certain category depending on the credit score model used. To help give you a frame of reference, let’s break down the VantageScore® and FICO® credit score categories below.
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
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
As you may have noticed, a 762 credit score is considered to be a good VantageScore and a very good FICO score. This means as a candidate for credit, you could typically pose less of a risk to potential lenders than someone with a lower score. As a result, you could be more likely to have a better chance of getting approved for loans, credit cards and more.
How to improve your credit score
A 762 credit score is already considered to be good and may come with several benefits, including lower annual percentage rates (APRs), which can reduce the amount of interest you owe over the lifetime of a loan. But if you’re determined, you might bump your score into the “excellent” category by implementing the following strategies:
- Continue making payments on time. This is important because even just one missed payment can have a negative effect on your credit score.
- Lower your credit utilization ratio. This ratio is the amount of credit you use against your total available credit. Lowering this ratio to 30% or less may be a helpful way to help improve your credit score. This may involve adjusting some of your spending habits and your dependency on credit cards.
- Diversify your credit mix. If you only have one type of credit—for example, credit cards—you may want to consider a different route next time you’re looking for a line of credit. For example, consider applying for a personal loan instead. Note that your lender will run a hard credit check, which could temporarily hurt your score. However, over time, showcasing your ability to manage your lines of credit may help boost your score.
Home loans and a 762 credit score
Buying a home with a 762 credit score may be possible, but it may be more challenging than if you had a higher credit score. As part of the homebuying process, carefully review and compare different lenders and loan options to find the best fit for your specific circumstances.
While important, credit scores are just one of several factors lenders use when approving home loans. In general, some lenders may require a larger down payment, charge higher interest rates or have stricter loan terms for mortgage applicants in the "good" range.
Credit card account approval with a 762 credit score
With a 762 credit score, you could have the potential to be approved for many types of credit cards. Credit card account approval with a 762 credit score may come with lower APRs and additional perks compared to someone who has a lower credit score. However, as with any financial decision, it can be essential to research the card that best suits your needs and spending habits. Additionally, while your score is an important factor, it is not the only one considered by lenders. Employment history, debt-to-income ratio and others may impact your ability to get your next credit card.
Additional tips for managing credit wisely
Because credit scores are just one part of the larger picture, it can be important to consider additional tips to help manage your credit. These include, but are not limited to:
- Making a realistic budget. Finding small but impactful ways to cut spending can help you to lower your credit utilization and positively impact your credit score.
- Prioritize paying off debts. You might want to adopt strategies such as the debt snowball method (paying off smaller debts first) or the debt avalanche method (paying off loans with higher interest rates first) to help you with debt repayment.
- Consider enrolling in Chase Credit Journey®. This is a free online tool anyone can use, including non-Chase cardmembers. You can view your credit score for free without impacting it, as well as a credit report, provided by Experian™.
- Monitor your credit report. Look for errors and report them to the respective credit bureau(s).
Conclusion
According to credit scoring models, a 762 credit score is considered to be good or very good, which means you may have a better chance of getting the loans and rates you want. However, a higher credit score could unlock even more opportunities, such as other credit cards. Whether you’re looking to improve or maintain your score, it can be key to keep in mind some of the ways you can help manage your credit wisely. Doing so can help maintain your financial wellness and keep you on a healthy path forward.
