You Might Have Great Credit
It’s our inaugural specific credit score post of 2012! Hooray!
Today we’ll examine a “780 credit score.”
As always, we need to use the correct scoring algorithm and corresponding credit score scale to ensure we’re talking about the same thing when evaluating the score.
As you can see, a 780 credit score would put you pretty darn close to the high-end of Fico’s range, and well above the scoring floor. By about 500 points.
780 Fico Score is Excellent
If you’ve got a 780 Fico score, pat yourself on the back, you’ve done well to take care of your credit over the years.
And it must mean that you have practiced healthy credit score habits, such as paying all your bills on time, keeping any outstanding balances low, and applying for new credit only when you’ve needed to.
Perhaps the only thing holding you back from that elusive 800 credit score is a lack of credit depth.
After all, the older we are, the better our credit scores seem to be (see average credit score by age for more on that).
Lenders like to see consumers that pay on time, over time, not just once or twice. So the longer you make good on your financial commitments, the better your credit score will be.
After all, you wouldn’t necessarily want to lend money to someone you’ve only seen pay someone back once.
Or it could just be that you’ve got a little more debt than you should, or a one-dimensional credit profile, such as all credit cards.
Tip: A mix of credit is key to obtaining a good credit score. So things like auto loans/leases and mortgages should boost your score even higher.
Either way, a Fico score of 780 or higher is high enough to qualify for pretty much any loan out there, and at the best interest rate. So you’ve made it!
780 VantageScore Above Average
Now let’s talk about a 780 VantageScore. This isn’t quite as excellent as a 780 Fico score. In fact, it falls within their “C” letter grade category.
And we all know from our days in school that a “C” is average, though you’d be on the cusp of their “B” bracket, and above the average VantageScore of 748.
So a 780 credit score here isn’t as favorable, but it’s not half bad. You probably just have limited credit history, higher-than-average outstanding balances, or perhaps too much recent credit.
If that’s the case, you may need to pump the brakes on all those new credit card applications.
There’s also a chance you could have something greater holding you back, such as a missed payment, but nothing too ugly.
In order to improve your credit score, you’ll just need to figure out what it is and take the necessary steps to resolve it.
You shouldn’t stress over it, but you may want to monitor your credit score for a bit to see your progress.
(photo: James Cridland)