745 credit score: A guide to credit scores
Quick insights
- A 745 credit score is considered to be a “good” VantageScore® and a “very good” FICO® score.
- You may have access to approvals for different types of credit with this score.
- You can further improve a 745 credit score over time by implementing some strategies, such as paying off your balance each month and lowering your credit utilization ratio.
Credit scores are an important factor when it comes to determining your creditworthiness and granting you approvals for loans, credit cards and more. In this article, we’ll explore what a 745 credit score means in detail.
What a 745 credit score means for you
Credit scores fall into different ranges depending on which range they land into. Interestingly, a 745 credit score falls into two different categories, depending on which credit scoring model is used. Let’s breakdown both scoring models and their ranges below.
As of May 2024, VantageScore® ranges are:
- Excellent: 781 to 850
- Good: 661 to 780
- Fair: 601 to 660
- Poor: 500 to 600
- Very Poor: 300 to 499
As of May 2024, FICO® score ranges are:
- Exceptional: 800+
- Very Good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 579 and below
As you can see, a 745 credit score is considered to be a good VantageScore and a very good FICO score. While the difference between these ranges is slight, it is possible that a 745 FICO score could hold more weight as it belongs to a higher category. If you have a 745 VantageScore, you still have a good chance of getting approvals for different lines of credit and good interest rates. It’s just that your VantageScore is interpreted as “good” as opposed to ”very good.”
Factors that influence credit scores for starters
To help you understand what a 745 credit score means for you, it’s essential to know the factors that influence credit scores. Some of the most important factors include:
- Payment history—your ability to make your payments on time, consistently.
- Credit age and mix—the different types of credit you have (for example, credit cards and personal loans) and the duration these accounts have been open for.
- Credit utilization—how much of your total available credit you use.
Achieving a 745 credit score may indicate that you make your payments on time, have diverse credit accounts and/or a lower credit utilization ratio. It could also indicate that you have a positive credit history. A good credit score like 745 can help improve your chances of accessing lower annual percentage rates (APRs) and approvals for credit cards and loans.
Buying a home with a 745 credit score
Buying a home with a 745 credit score may be possible. However, it may be more difficult to achieve than if you had an excellent credit score. Some lenders may require a larger down payment, charge higher interest rates or have stricter loan terms.
As part of the homebuying process, it's essential to review and compare different lenders and loan options to find the best fit for your specific circumstances. While important, credit scores are just one of several factors lenders use when approving home loans.
Ways to help improve your 745 credit score
While a 745 credit score is considered to be good or very good, you may be wondering how you can take this score even higher and break into the “exceptional” or “excellent” credit score category. With a little patience, discipline and determination, you can improve your credit score, but it will take some effort. You may want to consider implementing the following strategies:
Lower your credit utilization ratio. Ideally, this ratio should fall around 30% or less to help you improve your credit score.
Don’t miss your payments. Even just one late payment can have a negative effect on your credit score. Continue to make your payments on time so that you can keep your credit score healthy.
Monitor your credit report. Doing so can help you to identify any inaccuracies so that you can report them to the credit bureau(s).
Pay off your debts. Taking measured and proactive steps towards paying off your outstanding debts can have a positive impact on your credit score. Consider using the debt snowball method (paying smaller debts off first) or the debt avalanche method (prioritizing higher interest debts).
Consider enrolling in Chase Credit Journey®. This is a free online tool anyone, including non-Chase cardmembers, can use. It allows you to view and track your credit score provided by Experian™ for free.
Additionally, when possible, avoid closing old credit card accounts. This can cut your credit history short and have a negative effect on your credit score.
Getting a credit card with a 745 credit score
You may have a solid chance of getting approved for most credit cards with a 745 credit score. Note, however, that credit card approvals also may take into account other factors outside your score, such as income, employment history and debt-to-income ratio.
Additionally, while you may be able to get a credit card with a 745 credit score, you may need to continue to improve this score to access more premium cards. Whichever card you decide to apply for, make sure to review the terms and find a card that best aligns with your personal financial goals and spending habits.
In conclusion
A 745 credit score falls into two different categories—good for VantageScore, and very good for FICO scores. Whichever scoring model is used to generate your score, this score may help you get the approvals and interest rates you’re looking for. While this score may already indicate healthy financial habits, implementing some strategies and giving your spending a careful eye can help to further improve your credit score.
