A credit score of 775 is “Very Good,” according to Experian’s official classification. Those with Very Good credit scores are prompt to pay off debts and often use auto-pay features on their credit accounts, ensuring they pay the minimum every month. According to Experian, there are five categories of credit scores:
- 300 to 579: Very Poor;
- 580 to 669: Fair;
- 670 to 739: Good;
- 740 to 799: Very Good;
- 800 to 850: Exceptional.
Those who maintain their good credit habits are likely to reach Exceptional credit within a few years. To maintain and improve a 775 credit score, check your credit regularly and practice good credit habits. This article will guide you to an Exceptional credit score.
Table of Contents
Why Your Credit Score Is 775
About 25% of Americans have a credit score that falls into the Very Good classification, and only 22% of those with Very Good credit scores have late payments on their credit history. A Very Good credit score means that you’ve established good habits — this section details what you’re doing right.
Making Payments on Time
One of the most important actions to maintain a 775 credit score is to make payments on time. Missing multiple payments and having late payments older than 60 days can decrease a credit score by up to 35%. Very few accounts with 775 credit scores have late payments listed regularly on their credit history.
To keep a 775 credit score, it’s important to continue the good habit of paying accounts on time. If you miss a payment by one day, don’t panic. Credit agencies are unlikely to report a missed payment after one day if you’ve established a history of paying before the deadline.
Falling behind on multiple payments can drop a Good credit score to a Fair credit score.
Long Credit History
Credit bureaus favor accounts with long credit history. Accounts with cards more than seven years old often have higher credit scores. Having a long credit history shows that you’re experienced with credit and less of a risk for lenders.
Credit history is determined by dividing the ages of your total accounts (including both old and new) by the total number of accounts. If you have recently opened up a new credit account, your credit score will likely fall a few points. After a few years with the new account, your credit score will have greater potential for increase.
Range of Debt Type
Having multiple credit accounts with both revolving and installment loans can determine 10% of your credit score. Revolving credit refers to credit cards with spending limits and monthly payments, and installment loans are car loans or mortgages with fixed monthly payments.
Credit bureaus favor accounts with mixed credit. Having a range of debt types proves that you’re capable of handling multiple debts, including revolving and installment loans, and makes you a more attractive borrower.
What Can You Do With a 775 Credit Score?
There are only a few things you can’t do with a 775 credit score. With a score of 775, most lenders will trust you and will be more than willing to work with you. You could be entitled to credit card signing bonuses, low loan rates, and airline credit cards. Here’s everything you can do with a 775 credit score.
No-Annual-Fee Credit Card
Lenders want to work with individuals who have high credit scores because it lowers their risk. A person with a 775 credit score is valuable to lenders, and most lenders will allow them to sign for a credit card with no annual fee.
Credit Card Signing Bonus
Because people with high scores are sought after, some credit agencies will offer cards with signing bonuses and rewards. For example, the Quicksilver Cash Rewards credit card from Capital One offers $200 when you spend $500 in the first three months of using the card.
Good Mortgage Rates
Higher credit scores allow borrowers to access better mortgage rates. Someone with a 775 credit score can earn a mortgage rate as low as 3%. Mortgage rates fluctuate with the market, but those with high scores pay the lowest APR.
A person with a low credit score will have to pay higher mortgage rates, which adds up quickly during a 30-year fixed-rate mortgage.
Airline Credit Card
Airline cards and other travel cards require the borrower to have a Good to Very Good credit history. On average, airline cards require scores higher than 690. With a credit score of 775, you’re able to apply for an airline card of your choice and get air miles with every purchase on the card.
Good Personal Loan Rate
With a Very Good credit score, you gain access to better loan rates. A person with a lower credit score will need to pay a higher APR to compensate for the lender’s risk. If you have a Very Good score, the lender has less risk and can lower their interest rate.
Apartments are unlikely to rent to those with credit scores lower than 620 due to the risk of not receiving monthly payments. A person with a score of 775 should have no trouble renting an apartment from their choice of an apartment complex.
How to Improve a 775 Credit Score
Although a 775 credit score is Very Good, there’s always room for improvement. Other than maintaining good credit habits, here are some things you can start doing today that will improve your credit score and bring it into the Exceptional category.
Lower Your Utilization
Lowering your utilization rate can affect up to 30% of your credit score. Your utilization rate refers to the percentage of available credit in use. If you have a credit limit of $2,000 and you’re currently using $1,000 of that limit, your credit utilization is 50%. Credit experts recommend that you keep your utilization rate under 30%.
With a score of 775, it’s unlikely that you have high utilization above 50%. Ensuring that your credit utilization remains under 30% can help improve your credit score each month. If possible, pay off any outstanding debts and drop your utilization as low as possible.
Dispute Negative Claims
Credit agencies and bureaus make mistakes, and their mistakes can take a toll on your credit. Watch your credit report closely and monitor it for any negative claims.
If you see an unwarranted hard inquiry or other inaccurate negative marks, work to get it removed from your score. You can dispute negative claims by sending a dispute letter to the credit bureaus and requesting that the negative claim be removed.
Evaluate Your Credit Report
Your credit report records factors that could limit your credit score. Services such as Credit Karma review your credit history and walk you through areas where you can improve.
For example, you’ll be able to see how many active accounts you currently have and the current age of your credit history. Reviewing your credit report can help you specify areas of improvement unique to your case.
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