740 Credit Score: Is it Good or Bad?

Your credit score helps lenders understand the risk they’ll take by lending you money.

Credit scores can fall anywhere from 350 to 850. If you have a 740 credit score, you may be wondering if this is good or bad.

Within this article, we will look deeper into a 740 credit score and talk about some of the different products you’ll be able to receive, some that you might not be approved for, and what you can do to improve your credit score.

What does having a 740 credit score mean?

Credit scores that fall between 740 and 799 are considered very good. Roughly 25% of all Americans fall into this credit group.

A credit score of 740 is going to open the door to more products than if you had a 650 credit score. But it still won’t provide you with the best rates on everything. Most experts will tell you that anything above a 720 score will get you the best rate for an auto loan, but you’ll likely need at least 760 for the best rates on a mortgage.

The good news is that with a 740 credit score, most lenders see you as a low-risk borrower. Only 1% of individuals with a very good credit score become seriously delinquent on their payments in the future.

Which types of credit cards can you get with a 740 credit score?

If you have a credit score of 740, credit card issuers consider you to have good-to-excellent credit. This will give you the lowest interest rates and the most attractive card features. Here are a few of the best credit cards available for anyone with a credit score of 740.

card_name

The Platinum Card® from American Express

The Platinum Card® from American Express

Credit score needed

credit_score_needed

Regular APR

reg_apr,reg_apr_type

Annual fees

annual_fees

Welcome offer

bonus_miles_full

card_name is one of the premier travel credit cards available. When you sign up, you can bonus_miles_full. Plus, you’ll receive 5x points on flights booked directly with the airline and 5x points on airfare and hotels booked through American Express Travel.

While this luxury card does come with a steep annual_fees annual fee (Rates & Fees), you’ll receive more than $1,500 in value, including a $200 hotel credit, $240 entertainment credit (Disney+, Hulu, The New York Times and more), $200 in Uber Cash, $155 Walmart+ credit, and more. Terms and Enrollment Required.

card_name

Blue Cash Preferred® Card from American Express

Blue Cash Preferred® Card from American Express

Credit score needed

credit_score_needed

Regular APR

reg_apr,reg_apr_type

Annual fees

annual_fees

Welcome offer

bonus_miles_full

If you’re looking for a cash back card, it will be tough to beat the card_name. You’ll bonus_miles_full. Where this card stands out is its ability to earn cash back.

• 6% cash back at U.S. supermarkets on the first $6,000 spent each year (1% cash back after that)
• 6% cash back on select U.S. streaming services
• 3% cash back at U.S. gas stations and on transit
• 1% cash back on all other purchases
• Terms Apply.

You’ll receive an introductory annual_fees annual fee (Rates & Fees).

card_name

Chase Freedom Unlimited®

Learn More

Chase Freedom Unlimited®

Credit score

credit_score_needed

Annual fees

annual_fees

Welcome offer

bonus_miles_full

Why we like it:

card_name is a solid flat-rate earnings card with annual_fee_disclaimer annual fee. Although the 1.5% cash back doesn’t seem impressive at first glance, it becomes more valuable when combined with other rewards cards from Chase that can be redeemed for a far greater value.

This card is recommended for everyday use, whether for doctor copays or big box store purchases. It can be a large earner for cardmembers who want to get the most out of their everyday spending.

Product details:

Introductory Offer:

• Earn an extra 1.5% cash back on all purchases (up to $20,000 spent in the first year), which can add up to $300 in cash back!
• 0% Intro APR for 15 months on purchases and balance transfers, then a variable APR of 19.99% - 28.74%.

Intro Card Rewards:

• 6.5% cash back on travel booked through Chase Travel℠, our top-tier rewards program where you can redeem for cash back, travel, gift cards, and more.
• 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery services.
• 3% cash back on all other purchases (up to $20,000 spent in the first year).

After the First Year or $20,000 Spent Card Rewards:

• 5% cash back on travel booked through Chase Travel℠.
• 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery services.
• Unlimited 1.5% cash back on all other purchases.

Additional Benefits:

• No minimum to redeem for cash back. Choose a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards never expire as long as your account is open!
• No annual fee – Enjoy all the great features of your Freedom Unlimited® card without paying an annual fee.
• Credit Monitoring – Keep track of your credit health with Chase Credit Journey, offering free access to your latest score, alerts, and more.

Member FDIC

• Balance transfer fee: balance_transfer_fees
• Cash advance fee: cash_advance_fee
• Foreign transaction fee: foreign_transaction_fee

Not interested in paying an annual fee on your credit card? That’s no problem with the card_name. In addition to having annual_fees annual fee, and new cardholders can now benefit from a limited bonus_miles_full Plus, you’ll earn a generous amount of cash back:

• 5% cash back on travel booked through Chase Ultimate Rewards.
• 3% cash back on dining at restaurants.
• 3% cash back at drugstores.
• 1.5% cash back on all other purchases.
• Terms Apply.

With this card, you’ll also receive a generous introductory intro_apr_rate,intro_apr_duration APR for 15 months on purchases and balance_transfer_intro_apr,balance_transfer_intro_duration on balance transfers then reg_apr,reg_apr_type APR.

What will you get approved for with a 740 score?

Beyond some of the best credit cards available, a 740 credit score will also give you access to several other products, including auto loans, mortgages, personal loans, and more.

Auto loans

Auto loans are available to most people regardless of their credit score. However, your score will directly affect the interest rate you receive. The higher your score, the lower your interest rate. Most lenders will offer the best rates to anyone with a credit score of 720 or higher.

Mortgage loans

Mortgage loans aren’t quite as easy to get as auto loans, but you’ll be sitting in good shape with a credit score of 740. Conventional loans are available to anyone with a credit score of at least 620.

Like most loan products, the better your credit score, the lower your interest rate. For example, as of August 14, 2023, the average APR on a 30-year mortgage for someone with a 740 credit score would be 7.038%. However, if you only had a credit score of 650, your APR would be 7.859%. For a $300,000 mortgage, that would be a difference of $60,000 in total interest paid over the life of the loan.

RELATED: Best Online Mortgage Lenders

Land loan

Want to build your next home? You might consider a land loan if you found the land but are not quite ready to build. These loans will allow you to acquire the land for future builds. With a land loan, you’ll need a credit score in the high 600s to low 700s. You’ll also need a down payment of at least 50% and a debt-to-income ratio of 43% or less.

Rentals

Every landlord has their own guidelines regarding the minimum credit score needed. However, having a 740 credit score makes it unlikely that any landlord would decline your application.

Personal loans

All personal loan lenders like Lending Point, Upgrade, and Discover® Bank have credit score requirements, but none will decline someone with a 740 credit score. Plus, you’re also likely to receive the best rates they offer.

RELATED: Compare the Best Personal Loan Rates

What will a 740 score impact?

As your credit score increases, it will affect certain aspects of the loans you apply for. Here are a few impacts you may experience.

Interest rates

With a 740 credit score, you will receive some of the highest rates available for auto and personal loans. However, the best rates on mortgage loans are typically reserved for anyone with a score of 760 or higher.

RELATED: Historical Mortgage Rates

Jobs

Most employers will do a pull on your credit report during the application process. To many, your credit score is a good indicator of the type of employee you’ll be. With a credit score of 740, you’re proving to a potential employer that you responsibly pay your bills on time and only spend what you can afford. This is a good sign that they’ll be hiring a good employee.

How to improve your 740 Credit Score

If you want to improve your credit score a little further to receive the best possible rates on a mortgage, make sure you follow these tips.

Credit monitoring

One of the best ways to improve your credit score is to sign up for credit monitoring. Companies like Experian will provide access to your monthly credit report so that you know what’s affecting your score.

Experian CreditWorks℠

View Offer

Experian CreditWorks℠

Monthly fee

Free to $24.99 per month

Credit scoring model used

FICO

Identity insurance

N/A

Why Experian

Experian CreditWorks provides everyday access to your Experian Credit Report FICO® Score, updated Score Factors that show what’s positively or negatively impacting your FICO® Score, daily monitoring of your Experian Credit Report, and personal support from our dedicated team of credit and Fraud Resolution Agents.

Budgeting apps

One of the most significant factors in your credit score is your credit utilization, or the amount of available credit you use. One of the best ways to ensure you’re not spending more than you should on your credit cards each month is to start budgeting. Budgeting apps like Rocket Money allow you to stay on top of your spending and understand where your money is going.

Rocket Money

View Offer

Rocket Money

Fees

Free

Features

Build a budget through individual expense categorization and create savings goals both individually and with a partner

Links to accounts

Yes

Automatic payments

Missing a payment is one of the worst things you can do for your credit score. Missed payments will stay on your credit report for 7.5 years. By putting your payments on autopilot, you’ll make sure you never miss another payment. Credit card companies typically allow you to set up automatic payments where you can pay the minimum balance, statement balance, or entire balance. Cash App will also allow you to pay most of your other bills each month automatically.

Dispute credit report errors

Credit report errors happen. By monitoring your credit regularly, you can identify any errors and have them corrected. Depending on the error, it could significantly affect your credit score.

LEAR MORE: How to Dispute a Credit Report

Get credit for rent and utility payments

Did you know you could boost your credit score by paying your utility bills and rent on time? Experian Boost will reward you each month when you make one of these non-traditional payments on time.

Experian Boost

View Offer

Experian Boost

Monthly fee

Free

Credit scoring model used

FICO

Identity insurance

N/A

TIME Stamp: A 740 credit score will open all kinds of doors for you—including almost all of the best interest rates.

Your credit score can significantly impact how much things will cost. However, with a 740 credit score, you’re going to have the luxury of some of the best rates available on things like auto loans, credit cards, and personal loans. By improving your credit score slightly, you’ll also be able to receive the best rates on your next mortgage.

Frequently asked questions (FAQs)

What kind of loan can I get with a 740 credit score?

You’ll be able to receive any loan product with a 740 credit score. While you’ll also receive the best rates possible with most products, you’ll need to improve your credit score slightly to receive the best mortgage rates.

How long does it take to get a 740 credit score?

There is no exact timeframe needed to grow your credit score to 740. However, you should expect it to take at least six months if you’re starting below 650 or 700.