Is 720 a Good Credit Score?

By Melissa Brock

(Last Updated – 05/2024)

If you have a 720 credit score, you have a score that falls within the “good” range — typically between 670 and 739. That means you have a good shot at accessing credit at competitive rates, though you likely won’t have as many perks or as low rates as those whose scores soar higher.

Read on to learn what a 720 credit score means and what you will probably qualify for in terms of credit cards, auto loans, mortgages, or personal loans.

What Does a 720 Credit Score Mean?

First, consider what exactly a credit score is. Credit scores summarize how well you’ve paid back debt in the past based on information from your credit reports, and they tell lenders how likely you may be to repay debt in the future.

A 720 credit score means you’ll be considered a “good” or “acceptable” borrower — it’s not an “excellent” score, nor is it “fair” or “poor.” In other words, you’d qualify for a variety of credit products but not necessarily the best possible interest rates.

You may have heard the words “720 FICO score” connected with your credit score and wonder what FICO stands for. FICO^® stands for Fair Isaac Corporation, the pioneers in calculating credit scores. Many lenders use the Fair Isaac Corporation’s scoring model. Learn more about FICO score vs. credit score.

Here’s a look at how FICO credit score ranges are typically categorized:

•   800 to 850: Excellent

•   740 to 799: Very good

•   670 to 739: Good

•   580 to 669: Fair

•   300 to 579: Poor

💡 Quick Tip: Some personal loan lenders can release your funds as quickly as the same day your loan is approved.

What Can You Get with a 720 Credit Score?

If you are wondering what you can get with a 720 credit score, you are probably interested in knowing about accessing a credit card, auto loan, mortgage, or personal loan.

While you can feel confident that you have options, lenders also look at other factors, such as your income and payment history.

In addition, if a prospective employer or landlord were to review your credit score, they would see your good rating and know that you have a solid history of using credit wisely in the past. That could help give your application a boost.

Can I Get a Credit Card with a 720 Credit Score?

You will typically become eligible for any type of credit card with a 720 credit score, including credit cards that offer cash back rewards, lower annual percentage rates (APRs), and other perks.

That said, you may find that the very lowest APRs and poshest perks (such as free access to airport lounges or earning more points) are reserved for those who have a credit score of 800 or higher.

Still, your good credit score can definitely work in your favor.

Credit card companies use your credit score to determine whether you qualify for a credit card. A good score assures a credit card company that you understand financial responsibility and that you can make your credit card payments on time.

💡 Quick Tip: With average interest rates lower than credit cards, a personal loan for credit card debt can substantially decrease your monthly bills.

Can I Get an Auto Loan with a 720 Credit Score?

Yes, you can get an auto loan with a 720 credit score.

Auto lenders determine your interest rate based on risk. If a lender thinks you have the potential to default, you’ll likely get a higher interest rate to compensate.

To determine the odds of your defaulting, they will consider your credit score and history, as well as your loan term, down payment, income and debt, and their own criteria as well.

•   Loan term: A longer repayment term carries risk for your lender, so you may be able to get a lower interest rate by getting a shorter repayment term.

•   Down payment: Putting down a larger down payment reduces how much you need to borrow and also reduces your risk in the eyes of your lender. You may get a lower interest rate with a larger down payment.

•   Income vs. debt: Lenders will also consider how much income you have coming into your home against your debt payments. This is called your debt-to-income ratio (DTI). The lower your DTI, the better you’ll look in the eyes of your lender.

•   Lender: Your lender may have their own criteria to determine interest rates. Ask your lender more about their processes to determine auto loans.

Recommended: Smarter Ways to Get a Car Loan

Can I Get a Mortgage with a 720 Credit Score?

You can get a mortgage with a 720 credit score. In fact, you can qualify for a jumbo loan, which is larger than a conventional loan.

Take a look at the type of mortgage loans available and the minimum credit score you might need for each one.

Type of Mortgage Loan	Definition	Minimum Credit Score
Conventional loan	A conventional loan is a loan not guaranteed by the federal government.	620
Jumbo loan	A jumbo loan is a loan that goes beyond the limits set by the Federal Housing Finance Agency. Loan limits are $766,550 but can go as high as $1,149,825 in certain high-cost areas.)	700
FHA loan with 10% down	An FHA loan is backed by the Federal Housing Administration (FHA). It offers mortgage insurance to FHA-approved lenders to protect lenders against risk.	500
VA loan	A VA loan is backed by the Department of Veterans Affairs, for service members, veterans, and eligible spouses. The VA sets the requirements and arranges the terms.	620
USDA loan	A USDA home loan is a no-down payment loan backed by the U.S. Department of Agriculture to help first-time homebuyers purchase homes in rural or suburban areas.	580

In addition to your credit score, mortgage lenders consider your payment history, how much credit you use, income, and assets. Make sure to review your credit reports and remove any errors for your best chance to qualify for a mortgage loan with a great interest rate.

Recommended: What Is a USDA Loan and How Does It Work?

Can I Get a Personal Loan with a 720 Credit Score?

You can typically get a personal loan with a 720 credit score.

Personal loans usually have a fixed interest rate and fixed payments, and typically offer fairly quick funding. You can use a personal loan for whatever you want. For instance, some people use it to pay down credit card debt or a major medical bill. Others use it to finance home renovations, a big summer vacation, or even a wedding.

The better your credit score, the lower your interest rate and the less you’ll pay in interest over the life of your loan.

Takeaway

If you have a credit score of 720, you rank at the higher end of the “good” credit score range. You probably will have many options available if you apply for credit, such as mortgages, credit cards, car loans, and personal loans with competitive rates. As you shop around, consider such factors as speed of approval and financing, APR, and loan amount and term or credit limit.

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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