How Good Is a Credit Score of 732?

FT Contributor
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According to Experian’s official credit score classification range, a credit score of 732 officially ranks as “Good”. Only eight points from a “Very Good” score, your Good credit score is the key to unlocking new loans, new credit cards, and new lines of credit on your timetable.

Understanding your credit score of 732 means understanding the financial factors that contribute to your rating. A figure that indicates your creditworthiness to potential lenders, credit scores indicate a borrower’s aptitude to repay a loan.

While “Very Poor” and “Fair” credit scores can make it more difficult to secure new loans when you want to, your Good credit score can help you pursue financial opportunities, including mortgage loans, rewards-based credit cards, and reasonably priced car insurance premiums.

Borrowers typically find it easier to improve a credit score of 732 once they have access to regular ranking changes. That’s why many consumers trust free, safe-for-use credit reporting programs like AnnualCreditReport.com, for regular updates on the most recent credit score fluctuations, positive or negative.

Why Your Credit Score Is 732

While it isn’t possible to identify the exact influences on a credit score of 732, common factors that determine a Good credit score include a positive payment history, sufficient credit age, and low loan utilization.

Positive Payment History

Often, lower credit scores are characterized by inconsistent, late, or missed payments. Fortunately, borrowers with a credit score of 732 often pursue responsible payment practices. This means making complete, on-time payments toward credit balances, without missing payments or submitting incomplete repayments.

Accounting for 35% of the equation that determines credit score, payment history is the most important factor when it comes to establishing positive credit over time. In the same way that clean payment history can lead to credit score increases beyond 732, missed payments can quickly compromise even an “Exceptional” credit score.

Positive payment habits have likely helped raise your credit score to 732, and can lead to further improvements toward a Very Good score if regular payments towards debts continue.

Sufficient Credit Age

Credit age is another important factor that helps determine a credit score of 732. Rather than opening new lines of credit to address new debts, borrowers with a credit score of 732 likely keep new accounts to a minimum, allowing existing accounts to naturally age.

As credit accounts increase in age, they can positively influence your credit score. It’s important to note that credit age is expressed as the average age of all active credit accounts. Keeping credit age healthy means avoiding new accounts whenever possible, so that credit age is not compromised by younger loans or credit card debt.

Low Loan Utilization

Loan utilization refers to the amount of credit a borrower uses, expressed as a ratio over available credit. Individuals with a credit score of 732 commonly retain low loan utilization rates, keeping overall debts low through substantial monthly payments.

While high spending thresholds can seem like an invitation from credit card companies to spend more money, borrowers with Good credit scores understand that low loan utilization is one of the keys to further credit score increases. Loan utilization rates can be improved simply by using less available credit during a regular repayment period.

Loan utilization ratios can also be improved when borrowers successfully petition their credit card company for an increase in total available credit. This will result in an even smaller percentage of available credit spent and can have a positive effect on overall credit score.

What Can You Do With a 732 Credit Score?

While further improvements need to be made to achieve a Very Good or an Exceptional rating, a credit score of 732 is still sufficient to help borrowers secure a personal or property loan, apartment rental, even one of the best rewards-based credit cards on the market today.

Consult the below information for further details on the opportunities afforded to borrowers with 732 credit scores.

  • Rewards-based credit cards can offer benefits to consumers after almost every purchase.
    • A credit score of 732 is sufficient to qualify for many — but not all — of the best available incentive-based credit cards, which allow consumers to earn airline miles, hotel points, cash-back options, and store-specific perks from many of the most popular retailers.
  • Mortgage loans can help borrowers take steps toward earning their next property.
    • Individuals with a credit score of 732 are typically able to obtain a mortgage loan with minimal hassle, though you won’t earn the lowest-available interest rates or most affordable fees without a higher credit score.
  • Apartment rentals are almost always easy to obtain with a 732 credit score, especially since many apartment managers usually deal with lesser credit scores.
    • No matter the apartment community you’re looking to call home, a 732 credit score is enough for a no-hassle acceptance.
  • Personal loans help consumers fund personal projects, whether that’s a home renovation, a destination wedding, or an unexpected medical bill.
    • Credit scores of 732 are usually sufficiently high to qualify for a personal loan — depending on the lender — though you’ll need a Very Good or an Exceptional credit score to qualify for the most affordable interest rates and associated fees.

A credit score of 732 is sufficiently high to help borrowers secure new loans, new credit cards, and new lines of credit when they want.

Even without a Very Good or an Exceptional credit score — which could earn even lower interest rates and more affordable fees — your Good credit score can help you take the necessary fiscal steps to secure a solid financial future.

How to Improve a 732 Credit Score

A Good credit score of 732 is often a sign that your financial accounts have avoided the most serious threats to a compromised credit score — bankruptcy, repeated missed payments, loans in default, and payments due to collections agencies.

Improving your credit score beyond 732 is a simple undertaking that requires disciplined spending habits. Keep payments complete and on-time, to further improve your payment history and preserve a clean repayment record.

Making complete payments toward credit balances will also help you keep overall levels of debt low, allowing for further improvements to a 732 credit score.

Avoiding excessive hard inquiries can also benefit a Good credit score. Performed whenever a lender officially considers a borrower for a new line of credit, a hard inquiry is essentially a check into a borrower’s credit history.

While it’s normal to have one or two hard inquiries within a year, excessive hard inquiries often serve as serious red flags for future lenders. Improving a credit score of 732 can mean minimizing hard inquiries to preserve credit age and keep your financial history strong.


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