Is 716 a Good Credit Score?

716 credit score

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    By Lauren Ward

    A 716 credit score is generally considered good and may help you qualify for a wide variety of financing opportunities more easily. It’s also right on par with the average American’s score of 717. That said, there’s still some room for improvement, especially if you want to access the lowest interest rates possible.

    Learn what to expect with different types of credit products when you have this credit score.

    Key Points

    •   A 716 credit score is considered good and aligns with the average American’s score.

    •   Individuals with a 716 credit score can qualify for various loans and credit cards with favorable terms.

    •   Room for improvement exists to access even better rates and terms with a higher credit score.

    •   A 716 score can help borrowers qualify for rewards programs, lower APRs, and various mortgage loans.

    •   A 716 score is good but not excellent, offering access to many financial products with competitive terms.

    What Does a 716 Credit Score Mean?

    Your credit score is a three-digit number from 300 to 850 that rates your creditworthiness and indicates to lenders how likely you are to pay back the funds you borrow. Two widely used credit scoring models, FICO® and VantageScore, use information from your credit report to calculate your credit score. Generally speaking, the higher your score, the better you look to potential lenders.

    Let’s see how FICO Scores — which are used in 90% of lending decisions — are categorized and how a 716 credit score stacks up.

    •   Poor: Less than 580

    •   Fair: 580-669

    •   Good: 670-739

    •   Very good: 740-799

    •   Exceptional: 800+

    As you can see, a credit score of 716 falls within the “good” range. With that score, you can likely qualify for many loans and credit cards and potentially get better terms, including lower fees and interest rates.

    How to Build Your Credit Score

    A 716 FICO credit score is solid, but if you can raise your score into the “very good” range, you may be able to qualify for even better rates and terms.

    One smart habit to adopt: Pay your bills on time, every time. Payment history makes a bigger impact on your credit score than anything else — a whopping 35% on FICO’s credit rating scale. If you need help managing your bills, consider setting up autopay or using a budget app to keep payments on track.

    It’s also a good idea to pay down any revolving debt you have. That’s because using a lot of your available credit can be a sign to lenders that you’re overextended, and could negatively impact your credit score. (Amounts owed make up 30% of your FICO Score.)

    What Else Can You Get With a 716 Credit Score?

    A credit score of 716 can help you qualify for most types of financing, including credit cards, auto loans, mortgages, and personal loans. But there are other financial factors that can impact your eligibility as well. Here’s how to navigate each type of credit when you have a 716 credit score, plus what other kinds of requirements may be in place.

    Can I Get a Credit Card With a 716 Credit Score?

    There are credit card options for users with nearly any credit score available. With a credit score of 716, you could qualify for just about any card out there and take advantage of several credit card perks.

    Common credit card benefits to look for when you have a good credit score include:

    •   Cash back or rewards points: Credit card reward programs let you earn cash back or points as you make purchases with your card. Cash back is usually calculated as a percentage of your spending, while rewards programs accrue points per dollar spent.

    •   One-time sign-up bonus: With a strong credit profile, you may qualify for a card that offers a monetary reward when you sign up. Usually you need to meet a minimum level of spending within a certain time frame in order to receive it.

    •   Higher credit limits: A higher credit score, along with a low debt-to-income ratio (DTI), could help you qualify for a higher credit limit on your card.

    •   Travel insurance: Some credit cards provide travel insurance, such as rental car collision insurance, trip delay insurance, and trip cancellation insurance.

    As you search for a credit card, consider these benefits as well as the starting APR before you apply.

    Can I Get an Auto Loan With a 716 Credit Score?

    Is a 716 credit score good for getting an auto loan? Short answer: Yes. Not only are you likely to meet a lender’s credit requirements, but you may even qualify for a lower APR. When you look at the average car loan interest rate, borrowers with a 716 credit score average a 6.87% APR for a new car purchase and 9.36% for a used car.

    Just remember that credit score isn’t the only factor lenders look at when evaluating an auto loan application. They also look at your income and DTI to determine how large of a monthly payment you can likely handle.

    Your loan term also impacts your interest rate regardless of credit score. Shorter terms (up to 48 months) tend to have the lowest rates, while longer terms typically come with higher rates. Finally, the size of your down payment also impacts your rate.

    If you want to qualify for the lowest auto loan rate possible with a 716 credit score, try to keep your outstanding debt low, maximize the amount of money you put down, and opt for a shorter loan term.

    Can I Get a Mortgage With a 716 Credit Score?

    With a 716 credit score, you can likely qualify for a variety of home loan programs and get a lower interest rate. You’ll still need to meet other lender requirements, including income and DTI limits. But your credit score shouldn’t hold you back when you’re ready to buy a home.

    Check out the most common types of mortgages and their typical credit score requirements:

    •   Conventional loans: Most lenders require at least a 620 credit score for a conventional loan. So with a 716, you’ll be nearly 100 over the minimum requirement. The minimum down payment is usually 3% or more.

    •   FHA loans: There are two different credit score requirements for an FHA loan, and a 716 meets both of them. To qualify for a 3.5% down payment, you must have a 580 or higher, and for a 10% down payment, you need at least a 500.

    •   VA loans: The government doesn’t set a minimum credit score requirement for VA loans. That’s left up to the lender. While many lenders like to see at least a 620, some may specialize in lower credit scores. Either way, veterans and military members with a 716 should qualify.

    •   USDA loans: Borrowers with scores in the low 600s or less may qualify for a USDA loan; they may just need to provide a letter of explanation with their application. But for 716 borrowers who meet the income and location requirements, this can be a great mortgage option.

    Can I Get a Personal Loan With a 716 Credit Score?

    Based on credit score alone, you could qualify for a personal loan with a 716. A personal loan calculator can help you gauge what monthly payments look like for different loan amounts and interest rates, whether you’re looking to consolidate credit card debt or use the funds for other purposes.

    If you are rejected for a personal loan even with a good credit score, consider these other factors that could impact your eligibility:

    •   Low or inconsistent income

    •   High debt-to-income ratio

    •   Errors or incomplete information on application

    Also pay attention to how many loans and credit cards you apply for in a short period of time. Each hard inquiry in a 12-month period can drop your score by as much as five points. Multiple credit applications could cause your 716 score to drop into the 600s, so get quotes with a soft pull before submitting a full application.

    The Takeaway

    Is a 716 credit score good? By and large, yes, it is. For many people, a 716 FICO Score helps them get approved for most types of financing, including auto loans, mortgages, credit cards and personal loans. However, keep in mind that a credit score is just one piece of information a lender considers. Other financial factors, such as income, debt-to-income ratio, and employment history, may also influence their decision.

    Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

    SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

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