A credit score of 722 officially ranks as “Good,” according to credit reporting agency Experian.
While you’ve already surpassed minimum qualifications for “Very Poor” and “Fair” scores, a 722 credit score still requires further improvement before you can earn the lowest interest rates and most reasonable loan fees.
Five individual financial factors contribute to the equation that determines your credit score:
- Credit age;
- Credit type;
- New credit;
- Payment history;
- Total debt.
Together, these factors help determine your credit score — the capacity of a consumer to repay a loan, evaluated by lenders whenever a consumer attempts to open a new line of credit.
One of the first steps to improving a credit score of 722 is obtaining the most recent updates on any new credit score fluctuations.
This is why many borrowers — regardless of their respective credit scores — use free, secure credit reporting programs like AnnualCreditReport.com, to identify and evaluate any credit score changes on an ongoing basis.
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Why Your Credit Score Is 722
Ultimately, it is not possible to identify the exact factors that contribute to a credit score of 722. However, common influences on a Good credit score include regulated payment history, low overall debt, and minimal hard inquiries against your credit.
Regulated Payment History
As the single-most-important factor in deciding a borrower’s overall credit rating, payment history makes up 35% of the total credit score equation.
Individuals who make regular, full payments toward credit balances are in line for credit score improvements as they solidify their credit score. Conversely, borrowers who make incomplete payments — or who miss payments entirely — can compromise their credit score and make future improvements more difficult to achieve.
Fortunately, borrowers with a Good credit score of 722 are often familiar with the best practices necessary to improve credit through a regulated payment history.
They reserve sufficient percentages of monthly wages specifically to pay down debts before they begin to accrue significant interest. These positive habits help solidify payment history, as a positive influence toward future credit score increases.
Low Overall Debt
Overall debt is also an important factor in determining a credit score. Accounting for 30% of the total credit score equation, debt levels are also a major influence — positive or negative — on credit score changes.
With a credit score of 722, you’re likely retaining low levels of debt across all active lines of credit by paying down debts at regular intervals.
On some occasions, higher levels of debt are acceptable. For example, a borrower may face higher debt levels after closing on a mortgage loan. It’s important that, especially in the weeks and months immediately following the closure of a large loan, borrowers continue to make regular payments toward credit balances.
These payments will help quickly lower levels of overall debt and can help you regain any credit points lost as a natural result of the loan.
Minimal Hard Inquiries
At times, borrowers may petition lenders for new lines of credit. Whenever a lender does officially consider a consumer for a new loan, a new credit card, or any transaction that requires borrowed finances, a hard inquiry is performed.
Hard inquiries are essential checks into a borrower’s financial history and can remain on financial records for up to a year.
While one or two yearly hard inquiries are entirely normal and will have a negligible effect on your overall credit score of 722, excessive hard inquiries can bring about credit score decreases. Lenders are understandably hesitant about offering loans to consumers with multiple active lines of credit.
Sustaining only a minimal number of hard inquiries is important for preserving your credit score of 722, and for increasing the average credit age across all of your accounts — another factor that can foster regular credit score updates.
What Can You Do With a 722 Credit Score?
A 722 credit score can help unlock various financial opportunities, from personal loans to reasonably priced car insurance premiums.
You’re unlikely to experience the lowest possible interest rates or the most affordable fees without a Very Good or Exceptional credit score, but a Good credit rating is typically sufficient to secure new loans and credit cards when you need them.
- Rewards-based credit cards help consumers unlock rewards from a wide variety of purchases.
- The best rewards-based credit cards offer airline miles, hotel and restaurant points, even cash-back options.
- While your credit score isn’t high enough to qualify for all credit cards, you can still secure a card with 0% introductory financing, benefits from specific retailers, and other perks.
- Mortgage loans help consumers take concrete steps toward owning property.
- With a credit score of 722, you’re likely to qualify for a variety of mortgage loan types, though your credit account will need further improvement before you can earn the best interest rates available.
- Personal loans can help consumers fund all types of projects, from small home renovations to large-scale destination weddings.
- Your credit score of 722 is usually sufficient to qualify for a personal loan — depending on your lender — though you won’t be able to earn the lowest interest rates.
- Apartment rentals are relatively easy to land with a 722 credit score. Especially since many apartment complexes are accustomed to dealing with lower average credit scores, your 722 credit ranking can help you find your next ideal apartment community.
Even without qualifying for the best possible interest rates and associated fees, your credit score of 722 is still a major asset. It can help you take solid steps to protect your financial future, whether that means moving into a new home, funding a personal project, or simply protecting your car with a well-priced insurance rate.
How to Improve a 722 Credit Score
Thankfully, a credit score of 722 means you’ve usually steered clear of the biggest risks to your credit ranking — loans in default, repayments due to collections agencies, and multiple sequential missed payments, even bankruptcy.
There are no sweeping changes you can make overnight to drastically improve a credit score of 722. Rather, improvements to your Good credit score require disciplined financial habits: making full payments toward credit balances, keeping total debts and loan utilization rates low, and reducing hard inquiries.
If you’ve noticed any inaccuracies on a credit report, you’ll need to take action before these errors have a chance to compromise your 722 credit score. The best credit repair companies can help you erase any inconsistencies from credit reports, even communicating with credit companies and lenders on your behalf to rectify any issues.
A preserved financial record leads to accurate monthly credit reports so that consumers with Good credit scores understand the steps to future improvement.
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