Is 725 a Good Credit Score?

By Timothy Moore

A 725 credit score falls easily within the “good” credit score range, and with it, you shouldn’t have trouble qualifying for most loans with competitive interest rates. That said, there’s still some room for improvement, as credit scores can go as high as 850.

Below, we’ll cover what a 725 credit score means and the types of credit cards, mortgages, personal loans, and auto loans you can get with this credit score.

What Does a 725 Credit Score Mean?

Your credit score is a three-digit number that represents your creditworthiness. A 725 credit score shows lenders that you’re a responsible borrower.

There are two main credit scoring models: FICO® and VantageScore®. FICO, which is used in most lending decisions, calculates your credit score based on several factors, including:

•   Your history of on-time payments

•   The amount you owe

•   The length of your credit history

•   The diversity of your credit mix

•   How many new credit accounts you’ve opened in a short amount of time

Here’s a look at how FICO Scores are categorized:

•   Poor: 300-579

•   Fair: 580-669

•   Good: 670-739

•   Very Good: 740-799

•   Excellent: 800-850

As the list above shows, a 725 credit score is on the higher end of the “good” range. It can indicate to lenders that you pay back your debts on time, don’t borrow more than you need to, and have managed a wide range of debt responsibly.

What’s more, a 725 credit score puts you in good standing: According to Experian®, 45% of Americans have a credit score below 725, and the average credit score in the U.S. is 715.

What Can You Get with a 725 Credit Score?

A 725 credit score makes you eligible for credit cards and a wide range of loans, including mortgages, personal loans, and auto loans. Let’s take a closer look at each of these.

Can I Get a Credit Card with a 725 Credit Score?

With a 725 credit score, you should have no problem qualifying for a credit card. While there’s no universal minimum credit score requirement for a credit card, creditors typically want to see at least a fair credit score (580 to 669) before approving you for an unsecured credit card.

Since you have good credit, you can likely qualify for some of the best rewards credit cards, including travel credit cards and cash-back credit cards.

Can I Get an Auto Loan with a 725 Credit Score?

A 725 FICO Score is a good indicator that you’ll get approved for an auto loan — and at a competitive interest rate. But there’s a catch: Most auto lenders don’t use your traditional credit score when making financing decisions. Instead, they use something called the FICO Auto Score, which can range from 250 to 900. There’s a strong correlation between a good credit score (like 725) and a good FICO Auto Score.

While people with poor credit scores can get an auto loan, borrowers with stronger scores tend to get the best deals. With a credit score of 725, you should expect competitive interest rates and low fees. Keep in mind, however, that lenders also consider factors like how much you’re borrowing, the loan term length you choose, the type of car you’re buying, and current economic conditions.

Can I Get a Mortgage with a 725 Credit Score?

A 725 credit score can set you up for success when you need a mortgage. The typical credit score needed to buy a house is 620, but you may be able to qualify for an FHA loan with a score as low as 500 if you make a down payment of 10%.

But it’s more than a matter of simply getting approved for a mortgage. With a credit score that’s more than 100 points above the typical minimum, you can likely expect more competitive mortgage rates, which can save you money over time.

Can I Get a Personal Loan with a 725 Credit Score?

You should have no problem qualifying for personal loans with a credit score of 725.

Though each lender will have its own credit score requirements for personal loans — and lenders take other factors into consideration, such as your debt-to-income ratio and employment — a 725 score should be more than enough with most major lenders.

With a good credit score of 725, you may be eligible to borrow more money with a personal loan than someone who barely meets a lender’s minimum requirements. You’re also more likely to be offered a lower interest rate on the loan and may be able to find a personal loan with no origination fees.

The Takeaway

A 725 is a good credit score and can help you get approved for the kinds of loans and credit cards you want. Still, there’s still room for improvement. Credit scores can go as high as 850, and a stronger score will help ensure you get the best rates on credit cards and loans.

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FAQs

What can you do with a credit score of 725?

A 725 credit score makes you an attractive borrower. You’ll likely have no problem qualifying for a wide array of credit cards, personal loans, mortgages, or auto loans. A 725 credit score also looks good on a background check, which can improve your chances of having a home or apartment lease, insurance application or employment application approved.

Can I buy a house with a 725 credit score?

Yes, you can buy a house with a 725 credit score. In general, you need a score in the 600s, but the type of mortgage can impact credit score requirements. VA loans, for instance, typically require a credit score of 620. FHA loans need a score of 580, but you may be able to qualify with a lower credit score if you put at least 10% down.

How can I improve my 725 credit score?

A 725 credit score is good, but with a little effort, you can boost your score to FICO’s “very good” (740 to 799) or “exceptional” (800+) level. Here are some tips for doing so:

•   Prioritize on-time payments on all credit cards and loan repayments. Your internet, phone, and utility bills may also be reported to credit bureaus, so stay on top of those payments as well.

•   Reduce how much you spend on credit cards, and prioritize paying off the balance in full each month to keep your credit utilization low.

•   Review your credit reports and keep an eye out for any errors. If you notice mistakes, dispute them to have them removed.