What Can I Get Approved For With a Credit Score Of 720?
A credit score of 720, which is above the national average credit score of most Americans, and is considered a very good score, will usually enable you to get most types of finance. Personal loans; auto loans: home mortgages and credit cards should all be easy to get approval for. You probably won’t get them at the very best interest rates but the interest rates you’ll be paying for these will still be pretty good.
To pay the very lowest interest rates, you want a score of about 750 or higher. Now you may want to try to increase you score to 750 before applying for finance so you can get those lower interest rates and there are plenty of articles on this site that tell you how to improve you credit score, but as far as getting approval, then yes you should be able to get approved for most loans and credit cards with a credit score of 720.
A credit score of 720 usually implies to the lender that you have a reliable repayment history and therefore the risk to them of you defaulting on the loan is low.
This answer isn’t set in stone of course because it will also depend on other variables like whether there are any negative items on your report from the past and the type they are eg charge offs, collections or late payments within the last 2 years (though if these are still on your report it would be doubtful that your score would be 720).
Also many lenders want to see that you’ve had reliable employment of at least 2 years and that you have an income that enables you to pay back this loan together with other loans you may still be repaying. They don’t like to see an individual spread themself too thin. Your income to debt ratio is also considered by lenders before they give you approval for finance.
Be sure to shop around for the best interest rates you can get, because a credit score of 720 is very good and this should be reflected in the rate you will pay for a loan.
Visit 3-4 financial institutions and ask them the lowest interest rate they’d be willing to place on the particular loan you are after. Ask them not to pull your credit report, that you are just doing some comparison shopping, you have a credit score of 720, a good payment history, steady employment and see what figure they’ll come up with for you.
From that you can decide which lender to work with. This is worth doing because the lower the interest rate you pay, the lower your monthly repayments will be and this can add up to thousands of dollars in your pocket over the life of the loan.
