Is 726 a Good Credit Score?

By Caroline Banton

(Last Updated – 05/2024)

Most lenders consider 726 to be a good credit score. In fact, it’s close to the top of that range and is close to a “very good” score. This rating means that you generally pay your bills on time and handle credit responsibly. For these reasons, you should qualify to access credit at a competitive rate — though not the lowest rates, which are reserved for those with excellent scores.

To learn more about what a 726 credit score means and what you will likely qualify for with that number, read on.

What Does a 726 Credit Score Mean?

A 726 credit score is categorized as a “good” score. FICO^® scores, which are the most popular reference points, range from 300 to 850.

Your FICO score is based on data that reflect how you manage your debt. For example, whether you make regular payments to your credit cards, car loan, or mortgage. It also reflects such factors as the length of your credit history, how much you owe, and how frequently you apply to access more credit. Lenders use this information to set interest rates and terms for loans, mortgages, and credit cards.

With FICO credit scores, the higher your number, the more likely a bank will lend to you with desirable loan terms. Here’s how these figures are classified:

Credit Score Ranges	Rating	Description
<580	Poor	This credit score is well below the average score of U.S. consumers. Most lenders will consider you high risk in this range and give you unfavorable loan terms, if any loan at all.
580-669	Fair	This credit score is below the average score of U.S. consumers. A lender will probably loan to you in this range, but the interest rate will likely be high, and you might have to offer up collateral.
670-739	Good	This credit score includes the average credit score of U.S. consumers. Most lenders will lend to you with relatively good loan terms.
740-799	Very Good	This credit score is above the average for U.S. consumers and demonstrates to lenders that you are highly dependable. You’re likely to be offered favorable loan terms.
800+	Exceptional	This credit score is well above the average score for U.S. consumers and can demonstrate to lenders that you are an exceptionally low-risk borrower.

According to Experian, the average American consumer has a FICO Score of 715 as of 2023, so you are in good company with an above-average credit score. Also, your three digits are close to the “very good” range. You could build your score further to enter that category.

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What Can You Get with a 726 Credit Score?

With a credit score of 726, you will likely be able to access loans and lines of credit at favorable rates. In addition, you may qualify for the following:

Better Insurance Rates

Some auto insurance companies may use your credit scores to decide what type of coverage you qualify for and how much to charge you. Home insurance providers also look at your credit score to see if you pay your debts on time and how much debt you have. If you have a high score and minimal debt, you might get a better deal from your insurer.

Higher Borrowing Limits

Credit card issuers, banks, and lenders put limits on the amounts you can borrow. If you have a good credit score, those limits will be higher.

Better Leases

A good credit or FICO score can impact how you live. Many landlords check applicants’ credit score to see if they typically pay their bills on time. A good score could help you get approved for a rental. Utility companies also often check your credit score, and the higher it is, the easier it will be for you to get internet and electricity services. They may also decide not to charge you a security deposit.

A New Job

Many companies, if not most, conduct a background check as part of the recruitment process. (Under the Fair Credit Reporting Act, or FCRA, they must get your written consent to do so.) A low credit score could give the impression that you don’t manage money well or are not responsible with deadlines. On the other hand, a solid score may encourage employers to see you as dependable and a good hire.

Can I Get a Credit Card with a 726 Credit Score?

With a credit score of 726 (or any score over 700), you can likely qualify for an array of credit cards with favorable interest rates and perks. For example, you might be able to get enticing cash back or points offers, which you can then use for hotel accommodations or other purposes.

The annual percentage rate (APR) you are charged on a credit card is determined by your credit score, payment history, and the state of the economy. If you have a good credit score, you are more likely to be offered an APR at the lower end of the scale.

However, the absolute lowest APRs and most exceptional credit card rewards are usually reserved for those in the highest range of credit scores.

💡 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 726 Credit Score?

You will likely qualify for most loans with a 726 credit score, and this is true for auto loans. However, it’s important to realize that your credit score can make a big difference in the interest rate you get. And this is especially true in auto lending.

According to MyFICO, as of April 2024, the average APR on a 60-month new auto loan for $50,000 for someone with a FICO Score of 720 or higher is 7.5%. With a score in the 690 to 719 range, it’s 8.64%, and, for a borrower with a score in the 660 to 689 tier, the average APR is 10.5%.

For context, this means that on a $50,000 new car loan, someone with a 726 FICO score would pay about $4,000 less in interest than a borrower with a 680, even though the scores are both in the “good credit” category. Also, different lenders will offer different rates.

Recommended: Understanding the Credit Rating Scale

Can I Get a Mortgage with a 726 Credit Score?

Most lenders will offer a mortgage to a borrower with a 726 credit score. Also consider this: For a conventional loan through Fannie Mae or Freddie Mac, you’ll need a score of 620, while FHA mortgages with low down payments require a score of 580. A 726 credit score is obviously well above that.

That said, you will probably be offered a rate similar to national averages and not the very best (aka lowest) interest rate or APR.

What’s more, your debt-to-income (DTI) ratio is critical for mortgage loans. Fannie Mae’s latest lending standards allow you to get a mortgage if your debt-to-income ratio is lower than 45%, if you can provide a 20% down payment and your credit score is above 720. If your DTI is lower, you might qualify for more favorable loan terms.

Can I Get a Personal Loan with a 726 Credit Score?

Yes, you should have a variety of options to choose among if you are looking for a personal loan and have a credit score of 726. Most banks require a credit score of 610 to 640 to qualify for a personal loan, and they prefer a score over 700. Borrowers typically need at least an 800 credit score to qualify for a lender’s lowest interest rate.

Personal loans can offer a good way to pay off credit card debt, which may help build your credit score. These funds could also be used for an unexpected car repair, a home improvement project, or a wedding or vacation.

Takeaway

A 726 credit score qualifies as being in the “good” range according to the FICO rating system. In fact, it’s close to the top of the ‘good” category and is higher than the average U.S. consumer’s credit score. With this score, you can typically qualify for credit cards, mortgages, car loans, and personal loans. Build your score even higher, and you can likely qualify for lower interest rates and more perks.

If you build your score over time, you might move into “very good” or even “exceptional” territory. With that kind of credit score, you could expect even better rates and lower fees the next time you need to borrow money.

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