The most common credit scores span from 300 to 850. A 738 credit score falls in the “good” range, but it’s not quite excellent — a perfect score is 850. If you have a 738 credit score, you’re likely to qualify for most loans and credit cards with ease.
Your 738 credit score puts you in good standing, and you’re likely to qualify for more competitive offers than if your score was lower. Depending on the lender, you may not have to pay application fees or high-interest rates.
How Lenders Pull Your Credit Score
Generally, lenders will review your credit score when you apply for any loan or line of credit. Lenders may look at several scores, including the FICO Score 8 and Vantage Score 3.0, two of the most widely used scoring models.
Your 738 credit score is a good score. It’s likely to get you approved for most loans and lines of credit offered by traditional lenders. You may qualify for the best rates and terms, such as no application fees or interest rate discounts.
What Can You Do With a Good Credit Score?
With a 738 credit score, you may qualify for the best terms when applying for a loan or line of credit. You could also get approved for some of the most competitive interest rates and fees available from lenders. Even insurance companies may offer discounts on auto and homeowners insurance premiums if you have a good credit score.
Also, having a good credit score could improve your chances of qualifying for certain jobs. Employers often run background checks that include looking at your credit history. So having a high credit score could help you land the job you’ve always wanted!
Even landlords these days make use of your score to decide whether to lease an apartment to you or not. This is because it’s a good indicator of your financial responsibility.
Factors Affecting Credit Scores
A variety of factors determine your credit score. Two of the most important determinants are your payment history or the number of late payments you’ve had in the past. Up to 35% of your score is based on your payment history.
The amount of debt you have, or your credit utilization ratio, affects 30% of your score. Experts recommend that you utilize a maximum of 30% of your credit limit. This is the ratio of your total credit card balances to your total available credit.
Other factors include the length of your credit history (15%), new credit applications and inquiries (10%), and types of accounts you have (10%).
How To Maintain Your 738 Credit Score
Here’s how you can keep your 738 credit score in good shape and even boost it:
Avoid Late Payments
Always pay your bills on time. Remember that your payment history has the biggest impact on your credit score. Late payments can cause your score to drop, so stay up-to-date with your payments.
Don’t Overuse Your Credit Cards
Your credit utilization ratio also affects your score. Keeping your overall credit usage below 30% would be best. If you have a credit limit of $12,000, keep your total balance below $3,600.
Monitor Your Credit Regularly
It helps to keep an eye on your credit report. This will ensure its accuracy. If you ever find errors, you can dispute them right away.
Boosting Your 738 Credit Score
You can start by paying off any existing debt. Your debts, especially credit card balances, affect your score. Paying off what you owe can help increase your score quickly.
Consider applying for a new line of credit or loan with a lower interest rate. This could reduce your overall debt. Doing so can also help improve your credit utilization ratio.
If there is no immediate and real need to open a new line of credit, it’s best to wait. When applying for a credit card or loan, the lender will pull your credit report. This “hard inquiry” could harm your credit score.
If you have the capacity to pay off more lines of credit, choose to diversify your loan types. This could help you boost your credit score faster as long as you make all of your payments on time and in full.
Professional services can also help you boost your credit score over time. They know the process and how to improve your score in the shortest amount of time.
Final Thoughts
Your credit score greatly impacts your financial and personal life. Even if you already have a 738 credit score, it’s vital to maintain or boost it. This way, you can take advantage of all the opportunities that come with having a good credit score.
