Is 740 a Good Credit Score?

By Jason Steele

(Last Updated – 04/2026)

A 740 credit score is generally considered very good. It falls relatively high on the credit scoring range (typically 300 to 850) and is above the average credit score of 713. With a credit score of 740, you are likely to have access to a variety of credit products and may qualify for favorable interest rates and terms.

That said, a 740 credit score still lands below the highest credit tier (known as “excellent” or “exceptional” credit), indicating that there’s still room for improvement. Here’s a look at what types of mortgages, car loans, personal loans, and credit cards you may be able to get with a 740 credit score.

What Does a 740 Credit Score Mean?

A credit score is a number designed to predict how likely a person is to repay a loan, based on their credit history. It is used by lenders to assess the risk of lending money to an individual. Credit scores typically range from 300 to 850, with higher scores indicating a lower credit risk. Factors that can impact your credit score include your payment history, amounts owed, length of your credit history, and the types of credit you use.

You actually don’t have just one credit score, but several. The reason is that credit scores can be calculated using different credit reports (we each have three, one from each of the major consumer credit bureaus) and different scoring models, such as FICO, VantageScore®, or a lender’s own proprietary algorithm.

According to FICO, which is the most widely used scoring model, a 740 credit score means you have “very good” credit. Here’s a look at exactly where a 740 score falls on the FICO rating system.

FICO credit score ranges are typically categorized as follows:

•   300-579: Very Poor

•   580-669: Fair

•   670-739: Good

•   740-799: Very Good

•   800-850: Exceptional

A score in the “very good” range tells lenders that you have a history of managing credit responsibly and are likely to continue doing so in the future. Late payments appear on just 24% of credit reports among people with credit scores of 740, according to Experian®.

In the VantageScore model, a 740 credit score also falls in the second-to-highest tier (661-780) and is considered good.

What Can You Get With a 740 Credit Score?

With a credit score of 740, you should be able to qualify for most credit cards, including rewards credit cards. In addition, you can likely qualify for home loans, student loans, auto loans, and personal loans with favorable rates and terms. Here’s a closer look at what types of lending products you can get with a 740 credit score.

Can I Get a Credit Card With a 740 Credit Score?

With a credit score of 740, you’re likely to qualify for most credit cards, including those with rewards programs and other benefits. Lenders and creditors generally consider a credit score of 740 to be very good, indicating that you are a low credit risk. This makes you an attractive candidate for credit card issuers, who will probably offer you favorable terms and conditions.

That said, credit card companies usually reserve their premier or top rewards cards for borrowers with exceptional credit (800-850).

Recommended: How Do I Check My Credit Score?

Can I Get an Auto Loan With a 740 Credit Score?

Yes, a credit score of 740 is considered very good when applying for an auto loan. This means you are likely to qualify for car loans with competitive interest rates and terms. Lenders see a credit score of 740 as an indicator that you are a responsible borrower who’s likely to repay the loan on time. For new auto loans, Experian reported that most borrowers had VantageScore scores of around 759 in the fourth quarter of 2024.

A credit score above 740 could unlock an even better rate on a new or used car loan. Here’s a look at how your credit score can impact the annual percentage rate (APR) you’ll pay on an auto loan.

Credit Score Range	Average New Car APR	Average Used Car APR
300-500	15.81%	21.58%
501-600	13.22%	18.99%
601-660	9.83%	13.74%
661-780	6.70%	9.06%
781-850	5.18%	6.82%

Source: Experian’s State of the Automotive Finance Market Report (first quarter of 2025)

When applying for an auto loan, keep in mind that lenders will likely consider other factors, including your income and the size of your down payment, when deciding whether or not to approve you for a car loan and at what rate.

Can I Get a Mortgage With a 740 Credit Score?

With this score, you should have no trouble getting approved for a home mortgage loan. You should also be able to unlock some of the best interest rates and terms available. Mortgage lenders can view a credit score of 740 as a sign that you are a low credit risk and are likely to repay the loan as agreed.

When you apply for a mortgage, however, lenders will also consider other factors, such as the amount of your down payment and your income. Mortgage companies will also be interested in your debt-to-income (DTI) ratio, which tells them what percent of your income is going toward debt repayment each month. They generally prefer to see that ratio remain below 36%.

To calculate your DTI ratio, simply add up your monthly debt payments (including rent and all of your debt obligations), divide that number by your monthly gross income, then convert the figure into a percentage by multiplying it by 100.

Recommended: Debt Consolidation Calculator

Can I Get a Personal Loan With a 740 Credit Score?

With a credit score of 740, you are likely to qualify for most personal loans. Lenders generally consider a credit score of 740 to be very good, indicating that you are a low credit risk. This makes you an attractive candidate for personal loan lenders, who are likely to offer you favorable terms and conditions.

Before deciding whether to approve you for a loan (and at what rate), however, lenders will also look at your income, employment history, and DTI ratio. You generally need a consistent and steady monthly income and a DTI ratio less than 36% to qualify for the best rates and terms on personal loans. Since most personal loans are unsecured, you don’t need any collateral (like a car or a home) for approval.

Once you qualify, a personal loan provides you with a lump sum of cash that can be used for virtually any purpose, including credit card consolidation, home improvements, and large purchases. You repay the loan (plus interest) in regular installments over the loan’s term, which can range anywhere from 1-7 years.

The Takeaway

Having a credit score of 740 means that you are a well-qualified borrower with a very good credit history. A 740 credit score should allow you to be approved for credit cards, home mortgages, auto loans, and personal loans, often with favorable interest rates and terms.

However, a score of 740 is just narrowly within FICO’s range of “very good,” and you’ll no longer be in that range if your score declines, even by a single point. If you manage your credit responsibly, however, you should be able to build on your already good credit score and unlock lending products with even better rates and terms in the future.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

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

FAQ

Is 740 a good credit score?

A 740 FICO credit score is considered very good and indicates a strong history of responsible credit management. It’s the lower threshold for the level below excellent credit, placing you in a strong position for favorable loan approvals and interest rates.

What is the average credit score in the US?

At the close of 2025, the average credit score was 713, a two-point drop from 2024.

For U.S. states, average scores range from a high of 741 in Minnesota to a low of 677 in Mississippi.

Is FICO score the same as credit score?

Essentially, credit score and FICO score refer to the same thing. A FICO score is a type of credit scoring model. Although different reporting agencies may weigh factors slightly differently, they’re all essentially measuring the same thing.