How Good Is a Credit Score of 723?

FT Contributor
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A credit score of 723 officially ranks as “Good” according to credit reporting bureau Experian. A Good credit score means you’ve eclipsed the minimum qualifications for a “Very Poor” and “Fair” credit rating, though it also means more improvements are necessary to achieve even lower interest rates and fees.

Your Good credit score is the result of multiple financial factors, that together make up the credit score equation:

  • Credit age;
  • Payment history;
  • Credit type;
  • Total debt;
  • New credit.

Together, these factors help lenders identify a potential borrower’s capacity to repay a loan if it is issued.

Securing regular access to recent credit updates is one of the first steps that borrowers can take if they’re looking to improve a credit score of 723.

Many consumers looking for information on regular credit score fluctuations will trust a free, secured credit reporting platform like AnnualCreditReport.com for continual access to up-to-date credit score improvements or regressions as they develop.

Why Your Credit Score Is 723

It isn’t possible to identify the exact reasons why your credit score is 723. However, understanding common influences on Good credit scores can help provide context for any recent or future changes. Common factors that determine Good credit scores include healthy payment history, matured credit age, and low amounts of total debt.

Healthy Payment History

As the single-most-important factor in determining your credit score, payment history deserves to be prioritized in any credit improvement strategy. After all, payment history accounts for 35% of the total credit score equation.

Complete, on-time payments toward credit balances can mean regular credit score updates; just as easily, incomplete or missed credit repayments can mean decreases in your credit rating.

With a credit score of 723, you’ve likely established healthy payment practices when it comes to credit repayment. Maintaining a healthy payment history sounds simple in theory, but individuals with Good credit scores understand that it often requires discipline.

Sustaining complete, full payments toward credit debts often means minimizing unnecessary purchases and reserving consistent portions of your monthly income specifically to pay down loans before they accrue significant interest.

Matured Credit Age

Credit age is another factor that can determine your overall credit score. Credit age refers to the average age of all active lines of credit; the longer each respective credit line is active, the higher the average age of your credit.

Borrowers with credit scores of 723 have likely seen their credit age mature, paying down debts from the same credit accounts.

While opening a new line of credit might sound attractive, especially if there’s an associated bonus or special offer, it can injure your credit score by lowering your credit age.

Preserving your Good credit score can mean using a few, dependable lines of credit. This also allows you to avoid excessive hard inquiries against your account.

Low Total Debt

Responsible for 30% of the total credit score equation, total debt is one of the most important factors in determining credit ranking. An individual with a credit score of 723 likely maintains low levels of overall debt, paying off monthly debts and committing to regular payments against mortgage and personal loans.

At times, it can be normal to have higher levels of debt. For example, borrowers who recently closed on a property loan may face higher levels of debt until regular payments begin to lower their total balance.

Especially in the months immediately following the closure of a loan, it’s important to keep payments full and consistent, to preserve your 723 credit score and regain any points lost after the loan was accepted.

What Can You Do With a 723 Credit Score?

A credit score of 723 means you’ll have an easy time unlocking financial opportunities, including mortgage loans, apartment rentals, even the best rewards-based credit cards on the market.

While you aren’t likely to secure the lowest possible interest rates without a “Very Good” or an “Exceptional” credit score, a Good credit rating can still help you pursue and obtain new lines of credit when you need them.

Reference the below details for even more information on the benefits that a credit score of 723 offers:

  • Personal loans can help consumers address private projects, everything from a small-scale home renovation to a large-scale destination wedding.
    • Depending on your lender, a credit score of 723 should be sufficient to help you qualify for a personal loan, though you will likely be paying higher monthly interest than the lowest available rates.
  • Mortgage loans are also available to borrowers with 723 credit scores.
    • Though your mortgage loan application should be readily accepted, you aren’t likely to acquire the lowest available interest rates or fees without additional improvements to your Good credit score.
  • Rewards-based credit cards can help qualified borrowers earn rewards on a wide variety of purchases.
    • A credit score of 723 won’t earn you access to every incentive-based credit card, but it can still help you lock down credit cards that offer airline miles, hotel and restaurant points, cash-back options, and even 0% financing.
  • Apartment rentals are fairly straightforward to secure with a 723 credit score.
    • Many apartment managers are accustomed to dealing with lower credit scores, from consumers who have not yet benefited from regular mortgage payments.
    • No matter the apartment you’re looking to call home, a Good credit score of 723 can help you move in on your schedule.

Even without the industry-leading benefits and lowest possible interest rates — typically available to individuals with Very Good and Exceptional credit scores — a credit score of 723 can help you pursue your next loan, credit card, or line of credit whenever you’re ready.

How to Improve a 723 Credit Score

A credit score of 723 means you’ve likely avoided the most serious risks to your credit rating, including loans in default and bankruptcy. Improving a credit score beyond your current Good rating requires commitment, alongside healthy financial practices.

Paying down total debts whenever possible will help you avoid significant interest payments, while naturally improving your payment history. At the same time, keep loan utilization low by using trusted credit accounts that mature with age.

If you ever notice errors on any credit report, trust a credit repair agency to help you address them before inconsistencies begin to lower your credit score. The best credit repair agencies can follow through on credit score improvement guarantees, and will even communicate directly with lenders and credit companies on your behalf.

As you continue achieving and protecting an accurate credit record, it will go a long way toward regular credit score increases over time.


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