730 credit score: A guide to credit scores

Quick insights

• A 730 credit score puts you in the “good” credit score category for the two main scoring models.
• There are several misconceptions about credit that are helpful to be aware of, such as closing old credit card accounts in hopes of improving your score.
• It’s possible to scale your credit score from good to “excellent” with some key strategies.

If you have a 730 credit score, it’s considered to be in the good credit score range by VantageScore^® and FICO^® score. But what does good really mean? Below we’ll take you through the process of understanding your 730 credit score, how to help protect it and even ways to improve it.

Understanding a 730 credit score

To help you understand what a 730 credit score means, it’s helpful to know the credit score ranges for the different scoring models. For VantageScore, the ranges include:

• Excellent: 781 to 850
• Good: 661 to 780
• Fair: 601 to 660
• Poor: 500 to 600
• Very Poor: 300 to 499

For FICO scores, the ranges include:

• Exceptional: 800+
• Very Good: 740 to 799
• Good: 670 to 739
• Fair: 580 to 669
• Poor: 579 and below

As you can see, the credit score of 730 falls within the good range, usually indicating a solid credit history and a lower risk for lenders.

Factors such as consistent, on-time payments, low credit utilization, diverse credit mix and a lengthy credit history contribute to a 730 credit score.

With a 730 credit score, individuals have better chances of securing loans, obtaining favorable interest rates, and accessing credit cards with attractive rewards and benefits.

Benefits of a 730 credit score

There might be several benefits of maintaining a good credit score. These include, but are not limited to:

• Potential access to better interest rates and loan terms. Individuals with a 730 credit score are more likely to qualify for loans with lower interest rates and better terms.
• Increased likelihood of credit approval. Lenders are more inclined to approve credit applications from individuals with a 730 credit score or above, though they will also evaluate other factors.
• Lower insurance premiums. Insurance providers often consider credit scores when determining premiums, and a 730 credit score can lead to lower ones.
• Credit card opportunities. Credit card issuers offer attractive rewards programs and perks to consumers. You may have more chances to get approved for a credit card with better rewards with a 730 score or more.
• Increased chances of being approved for rentals. Because landlords and other rental companies often run credit checks as part of the application process, you may find that having a 730 credit score may give you an advantage.

Tips for maintaining a 730 credit score

With a good credit score, you’re probably wondering how you can keep your score in this category and prevent it from slipping into fair or poor credit score ranges. Below, are a few helpful tips for maintaining a 730 credit score:

• Paying bills on time. Consistently paying bills by their due dates helps maintain a positive payment history, a crucial factor in credit score calculations.
• Keeping credit card balances low. Maintaining low credit card balances relative to credit limits demonstrates responsible credit utilization, positively impacting credit scores.
• Credit monitoring. Regularly checking your credit report for inaccuracies allows individuals to address and dispute any errors that could negatively affect their credit scores.

Strategies to help improve a 730 credit score

Are you looking to take your credit score from good to excellent? With some patience, consistency and diligence you can help improve your 730 credit score and move up to the next tier.

Paying off outstanding debts

Reducing or paying off outstanding debts can help lower your debt-to-income ratio, an important factor lenders consider when determining your creditworthiness. By managing your debt, you may help improve your credit score over time.

Diversifying credit mix

You may have healthy financial habits, but perhaps what is keeping you from achieving that next level of credit scores is your lack of diversity when it comes to credit. If you have limited types of credit, you may be hindering your credit mix which is another factor used to calculate your credit score. Having a mix of credit types, such as credit cards, loans and mortgages, can positively impact credit scores. Note that opening a new line of credit can cause your score to temporarily dip due to lenders running a credit check.

Lowering your credit utilization ratio

Your credit utilization ratio is the amount of credit you use compared to your total available credit. If you can increase your credit limit on existing cards by making a request with your lender (and keep your spending the same), you could lower your credit utilization ratio, which can improve your score. You can also do this by lowering your credit card balances and making adjustments in your budget.

Common misconceptions about credit scores

Even if you have a good credit score, it’s easy to have misconceptions about how your score works. These include, but are not limited to:

• Closing credit card accounts improves credit score. False, as long as you pay off your balance. This is because credit mix and history play a big part in showcasing your creditworthiness. It’s helpful to keep these accounts open, even if you use the card just once in a while to remain active.
• Checking credit scores frequently lowers credit score. Not always true. There are ways to check your score without triggering a credit check, which can hurt your score. For example, when you use Chase Credit Journey^®, a free online tool, you can check your score as many times as you would like without impacting your credit.
• Only credit card usage affects credit score. False. There’s a lot more that goes into your credit score than just how you manage your credit cards. Debt, payment history and derogatory remarks are just some of many other factors that contribute to calculating this number.
• Credit scores are the same across all credit bureaus. False. Different credit bureaus may use different scoring models, which could result in varying credit score numbers.

In conclusion

A 730 credit score means you’re on the right track. You’re probably developing good, healthy habits and keeping track of your credit usage. However, don’t make the mistake of interpreting this score as something fixed and unchangeable. You are still vulnerable to factors that can bring your score down. Maintaining healthy habits by making bill payments on time and staying self-aware can help you protect or even improve your credit score over time.