There are approximately 258 million adults living in the United States. While they can vary profoundly in everything from career to ethnicity and even nation of origin, they all share something in common.
Finances are a perpetual task that every single one of them must manage. After all, everyone has bills, grocery shopping, and even entertainment that their money must cover.
Every adult must also cope with the issue of their credit score. Since credit scores are often a mystery to the average consumer, that can lead to questions like, “Is 730 a good credit score?”
If you’re in the dark about credit scores or whether your score is good, keep reading for our quick guide.
What Are Credit Scores?
When a bank, credit card company or even a retail store decides if they should give you a line of credit, they can’t really spend the time to analyze your entire financial history. They need some kind of shorthand that helps speed up the process.
Enter the credit score. In essence, your credit score is a number that tells lenders how likely a credit bureau thinks you are to make reliable payments based on your financial history.
Credit bureaus typically divide credit scores into four or five categories, from bad or poor to excellent.
Why Do Credit Scores Matter?
Your credit score matters for a lot of reasons. A bad credit score can interfere with you even getting a line of credit like a credit card or personal loan, although that’s generally just for those with Bad or Poor credit scores.
For everyone else, your credit score often plays a key role in determining interest rates on a given line of credit. A lower score often translates into a higher, sometimes much higher, overall interest rate.
Is 730 a Good Credit Score?
As for the question of whether or not 730 is a good credit score, the answer is yes. A 730 credit score typically falls within credit bureaus’ good to excellent range. That means a 730 credit score will help you get credit or loans and reduce your interest rates.
Improving Your Credit Score
If your credit score falls in the mid-600s or lower, you should make every effort to improve your credit score. Reducing debt and paying bills on time will help. If you’re already doing that and not seeing much progress, you can look for professional credit score help options like credit coaching.
Credit Scores and You
Questions like, “Is 730 a good credit score?” highlight how obscure credit scores are for most people. It also underscores how little many people understand about the impact of their credit scores on their lives.
Your credit score can make a huge difference in the long term by reducing or increasing your interest rates on credit. For a mortgage, that can mean paying out tens of thousands extra in pure interest over the entire mortgage.
Jeanne Kelly helps individuals to get their credit and credit scores under control. For more information, contact Jeanne Kelly Credit Coach today.