CREDIT SCORE

Is 740 a Good Credit Score?

Last Updated: May 2026

300–850FICO Score Range

714Avg. U.S. Score

670+Good Credit Threshold

📋 Reviewed by WiseIQ Editorial Team · Updated April 2026 · Editorially independent

WiseIQ Editorial Team

Reviewed by certified financial experts · Updated March 2026

About our team →

A 740 credit score is Very Good and approaching Exceptional. You qualify for the best rates on nearly all products and are in the top quarter of American borrowers.

WiseIQ Expert Tip

Your payment history accounts for 35% of your FICO score — the single largest factor. Setting up autopay for at least the minimum payment eliminates the risk of a missed payment tanking your score.

Last Updated: March 2026 WiseIQ Editorial Team

740

Very Good Credit

FICO Score Range: 300–850

300850

Browse Credit Scores

580 600 620 640 660 680 700 720 740 760 780 800 850

Score Tier

Very Good Credit

Grade

Better Than

74% of Americans

What You Qualify For with a 740 Credit Score

Credit Cards

All major cards. Best sign-up bonuses and approval odds.

Personal Loans

Best available rates from all lenders. 5.5%–10% APR typical.

Auto Loans

Near-prime rates. 3.5%–6% APR typical.

Mortgage

Best conventional rates. Within the top rate tier.

HELOC

Best available rates. Maximum LTV options.

Savings Account

Any bank — credit scores don't affect savings account eligibility.

Best Financial Products for 740 Credit Score

Credit Cards for 740 →Personal Loans for 740 →Savings Accounts for 740 →HELOC for 740 →

What's Keeping You Below the Next Tier

Utilization above 5%–10%
Average account age under 8 years
One late payment from 4–6 years ago still on the report
Recent hard inquiries

How to Improve a 740 Credit Score

You're in excellent shape — optimize, don't stress

At 740, you qualify for the best rates. Further improvement is about fine-tuning, not urgency.

Get utilization to 1%–3%

The sweet spot for maximum score is 1%–3% utilization, not 0%. Having at least one card report a small balance shows active use.

Let everything age

Time is your biggest ally at this level. Don't open new accounts.

Consider a mortgage if you don't have one

A mortgage adds a major installment account to your mix and can push scores above 760.

Timeline: From 740, reaching 760 typically takes 6–12 months. Reaching 800 takes 2–4 years.

💡 Expert Insight

Based on our analysis of thousands of consumer financial profiles, the most common mistake people make is focusing solely on the interest rate without considering total loan cost, fees, and repayment flexibility. Always compare the APR — not just the rate — and read the fine print on prepayment penalties before signing.

WiseIQ Editorial Team

Reviewed by Certified Financial Planners & Industry Experts

Our editorial team consists of financial writers, CFPs, and former banking professionals dedicated to providing accurate, unbiased financial guidance. All content is fact-checked and updated regularly. Learn about our editorial standards →

Frequently Asked Questions

Is 740 a good credit score?

740 is Very Good — you're in the top 25% of American borrowers and qualify for the best rates on nearly all credit products. The difference between 740 and 800 is mostly bragging rights; the financial impact of further improvement is minimal compared to the gains made below 720.

What is the difference between 740 and 800 credit score?

Financially, very little. Both scores qualify for the best available rates. A 740 and an 800 borrower will typically receive identical mortgage rates, auto loan rates, and credit card offers. The main difference is that 800+ borrowers have a larger buffer — a single negative event won't drop them below the prime threshold.

Should I try to get my credit score above 740?

There's no urgency. At 740, you already qualify for the best rates. Continuing to improve is worthwhile for the buffer it provides (if something negative happens, you won't fall below prime), but it shouldn't be a financial priority over saving, investing, or paying down debt.

← 720 Score 760 Score →

📚 Books to Make the Most of Your Great Credit

Recommended books to go deeper on this topic

The Psychology of Money

by Morgan Housel

Timeless lessons on wealth, greed, and happiness — the most important book on how to think about money.

View on Amazon →

I Will Teach You To Be Rich

by Ramit Sethi

A 6-week program to automate your finances, invest smarter, and make the most of your excellent credit.

View on Amazon →

As an Amazon Associate, WiseIQ earns from qualifying purchases. This does not affect our editorial recommendations.

Sources & Methodology

WiseIQ's editorial team researches and fact-checks all content using primary sources. Our recommendations are based on independent analysis and are not influenced by advertiser relationships.

Consumer Financial Protection Bureau (CFPB) — regulatory data and consumer guidance
Federal Reserve — Consumer Credit Report (G.19) — interest rate benchmarks
AnnualCreditReport.com — official free credit report access
myFICO Credit Education — credit score methodology
Lender and issuer websites — rates, terms, and eligibility verified directly from source

Last reviewed: April 2026 | How we rank products

Is 740 a Good Credit Score?

Frequently Asked Questions

Related Tools

📚 Books to Make the Most of Your Great Credit

The Psychology of Money

I Will Teach You To Be Rich

Sources & Methodology

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