A credit score is a three-digit number that measures your credit history and predicts your likelihood of future financial success. A good score can help you get the financing you need at a reasonable interest rate and terms that work for your life.
With a 723 credit score, you’ll have plenty of options for loans and credit cards. But raising your score to the Very Good range can unlock even better loan rates and more competitive borrowing terms.
Overview of a 723 Credit Score
Having a 723 credit score means you have excellent credit, and are well-positioned to take advantage of lenders’ best interest rates and product offers. This includes 0% financing on cars and introductory 0% introductory APR offers on credit cards.
Your credit score is based on a number of factors, including your debt-to-income ratio (DTI), how long you’ve had your accounts open, and the types of credit you use. The three major credit bureaus, Experian(r), Equifax(r) and TransUnion(r), collect financial data about you that’s then processed by VantageScore or FICO algorithms to determine your credit score.
A longer credit history tends to benefit your credit score, as it signals that you’ve made wise credit decisions over time. However, you shouldn’t ignore new credit accounts that are opened relatively recently — these can contribute up to 15% of your overall credit history.
Credit Card Options with a 723 Credit Score
If you have a 723 credit score, you have a good chance of getting approved for credit cards with enticing perks. These could include cash back, travel rewards or a 0% APR offer.
Another factor that counts towards your credit score is how much of your total available credit you currently owe. This is important because it tells the lender how responsible you are with your finances and can affect your credit score in a positive way.
Your credit mix – how much of your overall debt is owed on different types of credit – accounts for about 10% of your score. This includes both revolving credit (credit cards) and installment loans (such as auto loans and mortgages).
Auto Loans with a 723 Credit Score
If you’re ready to buy a car, a 723 credit score can help you find a loan that fits your budget. You might have a few options, including auto loans from banks and credit unions, direct lenders, or car dealers.
It’s also a good idea to shop around for interest rates and terms before applying. Dealers might add markups to the interest rate you’re offered, which can make a big difference in how much you end up paying.
A credit score of 720 or higher can help you secure the best interest rate. On average, someone with a score in this range will pay less than half the average APR on a 60-month new auto loan.
Personal Loan Options with a 723 Credit Score
There are a variety of personal loan options available to consumers with a 723 credit score. The terms of these loans may vary by lender, but you should be able to find something that meets your needs.
The most common type of personal loan is a fixed-rate installment loan. These loans are often used to consolidate existing debt or to make a large purchase.
A fixed-rate installment loan will help you build a stronger credit history, which can lead to lower interest rates in the long run. However, you should consider whether you can afford the payments before taking out a personal loan.
When you apply for a personal loan, you’ll need to fill out an application with your personal information and any supporting documentation. The lender will also run a hard credit inquiry, which can temporarily ding your credit score by a few points.
Mortgages with a 723 Credit Score
If you’re looking to purchase a home, your 723 credit score should allow you to qualify for mortgages with conforming and FHA lending standards. However, borrowers with this credit score will be subject to higher debt-to-income ratios and may have difficulty getting the best rates from lenders.
Because your credit score is a reflection of your financial health, it’s important to monitor it on a regular basis. Keep track of your three primary credit bureaus — Equifax, Experian and TransUnion — and make sure you’re always obtaining your credit reports.