A credit score is a three-digit number lenders use to evaluate your credit risk. It helps determine if you should receive credit and at what interest rate.
A good credit score will usually help you get the best rates on loans and credit cards. However, it is not the only factor lenders consider.
Overview of a 716 Credit Score
A credit score of 716 is in the good-credit range, indicating that you’re likely to be approved for a variety of borrowing options. These may include credit cards, personal loans and mortgages, among others.
Having a 716 credit score makes it easier to qualify for these types of loans and credit products, but you can also improve your chances of approval by increasing your score to the next level, which is called “very good” or “excellent.”
Your credit report contains information about your payment history, amount owed and other factors that influence your credit score. The three major credit bureaus rely on this data to calculate your credit score.
Credit Card Options with a 716 Credit Score
If you have a 716 credit score, you can access a range of credit card options. These cards come with enticing perks and features, including welcome bonuses, cash back and travel rewards.
If your credit is in the good range, you can also qualify for a mortgage or auto loan. However, the terms of these loans are often less favorable than those for people with a higher credit score.
The FICO(r) credit scoring system favors borrowers with diverse credit portfolios that include both revolving (credit card accounts) and installment loans (car, home and student loans). A 716 credit score can help you get approved for many of these types of products.
Auto Loans with a 716 Credit Score
If you have a 716 credit score, you’re likely to qualify for a variety of auto loans. Depending on your loan type, interest rates and terms may be attractive.
In fact, a good credit score can help you save hundreds of dollars in interest over the life of your car loan. A higher score can also improve your eligibility for special financing from auto makers.
Another factor that affects your credit score is the mix of credit you have, or how much debt you have compared to your credit limits. The more diverse your credit profile, the better.
The three major credit bureaus (Equifax, Experian and TransUnion) combine your FICO score with their VantageScore scoring model to create your total credit score. A VantageScore takes about a month to develop, and weighs your total credit usage more heavily than the FICO Score.
Personal Loan Options with a 716 Credit Score
A 716 credit score is considered a good credit score, and borrowers with this score should be able to qualify for a wide range of personal loans. Most lenders will approve borrowers with credit scores in this range, and the terms of these loans can be competitive.
Getting a personal loan can help you meet short-term financial goals, like paying for a car or home improvement projects. It also can help you manage revolving debt, such as credit card balances, and improve your overall credit utilization ratio.
You can find many personal loan options online, including those offered by a variety of lenders. To get pre-qualified, you typically must provide basic information about yourself, such as your income and annual expenses. Then, most lenders conduct a soft credit check that doesn’t affect your score.
Mortgages with a 716 Credit Score
Mortgages are a popular choice for homeowners with good credit, and a 716 credit score can help you qualify for a loan. You’ll get a lower interest rate than you would with a higher credit score, saving you money on the loan over time.
If you have a 716 credit score, you’ll be able to find many different loans with attractive terms. These include mortgages, auto loans and personal loans, among others.
Your credit score is a result of your credit history, which is compiled by Equifax, Experian and TransUnion. It’s important to monitor your credit scores across all three agencies to ensure they’re accurate and up to date. It’s also a good idea to dispute inaccurate information on your report. You can do this by contacting the credit bureau or filing a dispute online.