A credit score is a number that lenders use to evaluate your credit worthiness. It reflects your history of paying bills on time, but it doesn’t take into account every negative factor that can impact your credit.
A 732 credit score is considered good, but you can improve your score and unlock better loan rates by following some simple steps. It may take some work, but the results are well worth it.
Overview of a 732 Credit Score
A 732 credit score is a mid-range credit rating that indicates you generally pay your bills on time. It is considered a good credit rating, and lenders typically consider it when making loans.
A credit score is calculated by analyzing five different types of information. The first of these is payment history. This accounts for 35% of your overall credit score.
The second factor that counts toward your credit score is how much money you owe. This includes both revolving debt (credit cards and lines of credit) and installment loans like auto loans and mortgages.
You can improve your 732 credit score by reducing the amount of loan utilization on your credit card accounts and continuing to make on-time payments towards your debts. This will help increase your overall credit score and may eventually lead to a Very Good or an Exceptional score.
Credit Card Options with a 732 Credit Score
A 732 credit score offers borrowers the opportunity to qualify for many of the best reward-based cards on the market. These cards typically provide consumers with rewards on spending categories like travel, gas, groceries and more.
These cardholders also have the option to earn extra cash back and perks through added benefits and bonuses. Depending on the card, these rewards may be in the form of airline miles, hotel points, and cash-back options.
Borrowers with a 732 credit score have the potential to achieve higher scores and improve their financial futures by making responsible payment habits a priority. This means on-time and complete payments toward credit balances and avoiding late or missed payments.
While the average credit score for American adults is 660, this number varies by age group. Consumers in their 20s have the lowest average score, while those in their 60s have the highest.
Auto Loans with a 732 Credit Score
If you have a credit score of 732, you may be able to secure an auto loan with lower interest rates than you would otherwise qualify for. This is due to the fact that banks view you as less of a risk when you have a high credit score.
Nevertheless, your interest rate will still be somewhat higher than someone with “Very Good” or “Excellent” credit. So be sure to shop around before you make your final decision.
A good credit score will also help you secure rewards-based credit cards that offer cash-back, airline miles, hotel points and store-specific perks. These rewards can add up quickly, and you’ll be able to use them for your next vacation or new car purchase.
Personal Loan Options with a 732 Credit Score
Your credit score affects the types of loans you can get and what interest rates you’ll pay. Lenders typically look at your credit score when deciding whether or not to approve you for a personal loan.
A good credit score tells lenders that you’re a reliable borrower and will likely repay the loan on time. A poor credit score indicates that you may be less likely to repay the loan.
It’s important to understand that your credit score isn’t the only factor lenders consider when evaluating your application for a personal loan. You’ll also be evaluated based on your debt-to-income ratio, which measures the amount of your debt relative to your income.
A personal loan can be a useful way to consolidate your existing credit card debt and improve your overall credit rating. However, you’ll want to be sure to stay on top of your payments and keep your revolving balances low so that you can continue to improve your 732 credit score.
Mortgages with a 732 Credit Score
Mortgages can be a great way to get started on your dream home, and those with a 732 credit score are typically in the best position to secure one. Though it’s important to note that a 732 credit score is not enough to earn the lowest-available interest rates or most affordable fees.
Borrowers with a 732 credit score typically have a strong mix of both installment and revolving debt, which accounts for about 35% of their overall FICO(r) Score. Maintaining healthy payment habits can help you continue to improve your score.
Borrowers with a 732 credit history are also likely to avoid new lines of credit in order to preserve their overall credit age. This allows existing credit accounts to naturally mature, which can help them contribute to improved credit scores over time.