How Good Is a Credit Score of 724?

FT Contributor
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Reading Time: 4 minutes

A credit score of 724 — according to credit bureau Experian’s credit score range — ranks as “Good.” While this means you’ve already eclipsed “Very Poor” and “Fair” scores, your credit score can still sustain further improvements.

Achieving a “Very Good” and eventually an “Exceptional” credit score can yield dividends like lower insurance rates, more affordable annual fees, and bigger credit card rewards.

A financial figure that determines a borrower’s creditworthiness, your credit score indicates how likely you are to repay a loan to a lender. A positive credit score unlocks financial opportunities like personal and property loans or new lines of credit, while a Very Poor or Fair score makes it more difficult to spend your money how you want to.

Further improving your credit score of 724 first means understanding it. That’s why many consumers trust a secure credit reporting platform like AnnualCreditReport.com, for constant updates on any new credit score improvements or regressions.

Why Your Credit Score Is 724

The first step toward improving a credit score of 724 is understanding the most important factors that determine your credit ranking. While it’s impossible to determine exactly which financial elements influence your credit score, common factors include total credit utilization, healthy payment history, and total remaining debt.

Total Credit Utilization

One of the main factors that can determine a Good credit score is total credit utilization — a ratio of used credit over total available credit. Even though many borrowers have high credit ceilings, using only necessary credit helps to positively influence a credit score.

Individuals with a credit score of 724 are likely using small percentages of total available credit, resulting in a higher overall credit score.

Optimizing your total credit utilization can be accomplished in two ways. You can work to use only small portions of your total available credit; at the same time, you could successfully petition for an increase in your available credit, making the percentage of credit used even smaller.

Healthy Payment History

As the single-most-important ranking factor in determining a credit score, payment history should remain the main focus for anyone looking to improve credit ranking. A 724 credit score is likely already the result of a healthy payment history, one characterized by full, regular payments.

More than any other influence, payment history can improve, or derail, a credit score. Keeping payments against your credit balance complete and on-time can contribute to systematic increases in your credit score; just as easily, incomplete or missed payments can compromise even an Exceptional credit score.

Even a Good credit score of 724 can benefit from regular payments toward total credit debt.

Total Remaining Debt

The amount of debt remaining is another important factor in determining your credit score. With a credit score of 724, borrowers are likely to have low remaining or revolving debts, and they pay down old debts as fast — or faster — than new debts are created.

Sometimes, it’s natural to have high levels of remaining debt. For example, consumers are likely to have high levels of total debt immediately after securing a property or personal loan.

It’s also natural to see an incremental credit score decrease immediately after considerable new debt is added to financial records. As total debt is systematically paid down, credit scores of 724 are likely to see regular increases.

What Can You Do With a 724 Credit Score?

A credit score of 724 can help you secure financial opportunities, including personal loans, home mortgages, even some of the best rewards-based credit cards available today.

While you’re not likely to secure industry-leading interest rates or the lowest possible annual fees, your Good credit score should be sufficient to help you open new lines of credit whenever necessary.

Reference the below details to understand exactly what a credit score of 724 can do for you.

  • Rewards-based credit cards are available to individuals with a credit score of 724. Cards that earn you hotel points, airline miles, 0% financing, and other incentives are certainly available to you.
  • Mortgage loans are also available with a 724 credit score. However, without a better credit score, you can likely expect standard interest rates, as opposed to the low interest rates you would see with an Exceptional score.
  • Personal loans should be fairly simple to obtain with a credit score of 724 and are useful in funding personal projects — everything from school tuition to an unexpected bill. While you likely won’t be able to secure the lowest interest rate available, you’ll still be able to obtain funding when you need it.
  • Car insurance premiums can get expensive fast. A Good credit score can certainly make your monthly auto insurance payment more reasonable; for the best car insurance rates on the market, you’ll need an Exceptional credit score.

Even without the best interest rates and the lowest fees, the loans available to individuals with a credit score of 724 can help you live the life you deserve. With regular payments and reduced total debt, credit score increases to Very Good and Exceptional rankings can mean even more powerful benefits.

How to Improve a 724 Credit Score

Improving a credit score of 724 means practicing the same positive habits that have resulted in your credit score increases to date. Namely, keep making full payments toward your credit balances.

If you find yourself forgetting to make regular payments, consider setting automatic reminders on your phone, or setting up automatic payments online, for a no-stress approach to your credit.

Regardless of how much money you earn each month or each payment period, you can take steps toward optimizing your credit score simply by paying down debts faster than you accumulate them.

This means limiting unnecessary spending and reserving more of your money each pay period specifically toward erasing debts. And of course, consult one of the best credit repair agencies if you need to dispute inaccurate details in any one of your credit reports.


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