Is a 740 credit score good? Yes. A score of 740 is the exact starting point of the “very good” range on the FICO scale, which runs from 740 to 799, and it sits above the national average of 713 (Experian, 2025). With a 740, you will generally qualify for most loans and credit cards, and lenders are likely to offer you better than average rates. But 740 is also a threshold score: it is the bottom of its band, not the top, and the best pricing on mortgages and the most exclusive credit cards usually starts higher, around 780. This guide explains where 740 sits on the scoring scales, what it unlocks, how common it is, and what is usually stopping a 740 score from reaching 800.
This article is general educational information only, not personal financial advice. The score ranges and averages below come from FICO and Experian, including Experian’s analysis of average US FICO Scores (Experian, 2025). Lenders set their own standards, so a score that qualifies with one lender may not qualify with another.
Is a 740 Credit Score Good?
Yes, by every standard scale. FICO divides its base scores, which run from 300 to 850, into five bands: 300 to 579 is poor, 580 to 669 is fair, 670 to 739 is good, 740 to 799 is very good, and 800 to 850 is exceptional (Experian, 2025). A 740 is the first score in the very good band, which means it is better than the scores of most borrowers: about 70% of consumers have a score of 670 or higher, and roughly 27.5% sit in the very good band itself, so a 740 puts you in roughly the top half of the very good group and above about 70% of all consumers (Experian, 2025).
What “very good” means in practice is that lenders see you as a dependable borrower. Experian describes applicants in the 740 to 799 range as likely to receive better than average rates from lenders (Experian, 2025). That is a meaningful step up from the good band, where applicants may qualify for many products but often with average rates and additional fees. The difference is not just a label: it shows up in the interest rate you are offered, the deposit a landlord asks for, and the credit limit a card issuer is willing to set. Our guide to what a credit score is and why it matters explains how that number is built from your credit history in the first place.
One caution: 740 is a threshold, and thresholds cut both ways. A single late payment, a maxed-out card, or a new collection account can drop a 740 score into the good band quickly, because the score is only one point above the boundary. Keeping it above 740 takes the same habits that got it there, and the habits that push it toward 780 and 800 are the subject of the later sections.
Where Does 740 Sit on the FICO and VantageScore Scales?
There is more than one credit score, and 740 means slightly different things on each scale. On the FICO Score 8 scale, the version most lenders use, 740 is very good, as described above. On the VantageScore 3.0 scale, which runs from 300 to 850 with different bands, 740 falls in the good band, which runs from 661 to 780, with excellent starting at 781. So the same person can be “very good” on FICO and “good” on VantageScore at the same time, and neither is wrong: they are different models weighing the same credit history differently.
The three credit bureaus, Equifax, Experian, and TransUnion, also keep separate records, so your score can differ from one bureau to another by a few points or more, depending on which accounts each bureau has on file. A 740 at Experian might be a 735 at Equifax or a 748 at TransUnion. Lenders usually pull one bureau’s score, and mortgage lenders typically pull all three and use the middle one. That is why checking your score in one place is not enough: check all three bureaus, and check both FICO and VantageScore if you can, so you know where you stand on the model your lender will actually use.
The average score gives useful context. The national average FICO Score was 713 in September 2025, according to Experian, which is in the good band and close to the top of it (Experian, 2025). A 740 is 27 points above that average. The average VantageScore 4.0 was 701 in August 2026, so a 740 is comfortably above average on that scale too. If you are just starting out, our guide to what credit score you start with explains how a score is built from nothing.
How Does 740 Compare With the Average Borrower?
A 740 score is common, but not average, and that distinction matters. About 27.5% of consumers have a FICO score between 740 and 799, so roughly one in four Americans sits in the same band (Experian, 2025). It is not a rare score, and it is not an elite one. The average borrower is at 713, in the good band, and the borrowers with the best rates are at 780 and above, where the top pricing tiers begin.
Averages also vary by age. Experian’s 2025 data put the average baby boomer at 747 and the average member of Generation Z at 678, so a 740 is above average for a younger borrower and about average for an older one. That makes sense: the length of credit history is a scoring factor, and older borrowers have simply had more time to build it. A 740 at 25 is a strong score. A 740 at 60 is a solid score with room to grow, and the habits that push it higher are the same at any age.
The more useful comparison is with the borrowers a lender sees. Mortgage lenders report that the median credit score of new mortgage borrowers is well above 740, because the people who apply for mortgages tend to have stronger credit than the general population. So while 740 is above the national average, it is close to the middle of the pack among people actually applying for a home loan, which is why the next section’s pricing tiers matter.
What Can You Get With a 740 Credit Score?
A 740 score qualifies you for most mainstream credit products. On a mortgage, you will generally qualify for a conventional loan, and you will be offered better than average rates, but not the best rates available. Mortgage pricing is set in tiers, and the best pricing typically starts at 780, with 740 to 759 in a lower tier. The difference between the tiers is real but modest: on a typical home loan it is usually a fraction of a percentage point in rate, which still adds up to thousands over 30 years, and it is one reason pushing a 740 toward 780 before applying can be worth the wait. For the steps that come before an application, see our guide to mortgage pre-approval and how to get one.
On an auto loan, a 740 will generally get you a prime rate, well below the rates offered to borrowers in the fair band, and on a credit card it will generally qualify you for most rewards cards, including many premium cards. Some issuers treat 740 as the minimum for their top travel and cash-back cards, so a 740 is often exactly the score those applications are built around. You will also generally pass a landlord’s credit check and may be offered lower deposits on utilities and phone contracts, although those decisions vary by provider and by state.
What a 740 does not guarantee is the best available terms on any single product. A lender can still decline you for reasons the score does not capture, such as a high debt-to-income ratio, a short employment history, or a recent bankruptcy, and the score itself is only one input among several. If your score is 740 but your income is stretched, the rate you are offered will reflect the whole picture, not just the number. You can check your own score for free before you apply, as our guide to checking your credit score for free explains.
What Is Stopping a 740 Score From Reaching 800?
FICO scores are built from five factors, weighted roughly as follows: payment history counts for 35%, amounts owed for 30%, length of credit history for 15%, new credit for 10%, and credit mix for 10% (myFICO). At 740, the usual drags are not missed payments, which would have pushed the score much lower, but the subtler factors: how much of your available credit you are using, how long your accounts have been open, and how recently you opened a new one.
Credit utilisation, the share of your available credit you are using, is the commonest reason a 740 score stalls. Someone with a 740 often carries balances of 20% to 30% of their limits, which is low enough to be good but high enough to cost points. The scoring models reward low utilisation, and the highest scores usually belong to people using under 10% of their limits. A single card near its limit can drag a score down even when the total balance across all cards is modest, because the models look at both the overall utilisation and the utilisation on each card.
Length of history is the second common drag, and it is the hardest to fix quickly. A thin file, a first card opened three years ago, or a closed old card that shortened your average account age will all hold the score down, and only time improves them. New credit is the third: a recent hard inquiry or a newly opened account temporarily lowers the score, and several in a short period lower it more. Finally, a collection account, even a small one, can hold a 740 score down for years. That is why it is worth checking whether an old bill went to collections, as our guide to whether medical bills can affect your credit score explains.
How to Move From 740 Toward 800
The fastest lever at 740 is usually utilisation. Paying balances down, and paying them before the statement closing date rather than the due date, so the lower balance is what gets reported, can add points within one or two billing cycles. Keeping utilisation in single digits, and keeping every individual card well below its limit, is the pattern the highest scores share. If you carry a balance on one card while others sit empty, spreading the balance, or paying the high-utilisation card first, helps more than paying the same amount off a low-utilisation card.
The second lever is protecting your payment history, which is worth 35% of the score. A single payment 30 days late can cost a 740 score 60 to 80 points, and it takes months to recover, so autopay on at least the minimum payment for every account is the cheapest insurance a 740 borrower can buy. The third lever is patience with new credit: avoid opening new accounts in the months before a mortgage or auto loan application, because each hard inquiry and each new account trims the score temporarily.
The fourth lever is time, and it needs no action at all. Keep your oldest card open, even if you rarely use it, because closing it shortens your average account age and raises your utilisation by removing its limit from the calculation. Check your credit reports for errors at least once a year, through the official free site, AnnualCreditReport.com, because an error, a wrong balance, or an account that is not yours can hold a score down for no reason, and disputing it is free. A 740 score is already a good score; the distance to 800 is mostly a matter of low utilisation, unbroken on-time payments, and time.
Frequently Asked Questions
Is a 740 credit score good for a mortgage?
Yes. A 740 qualifies you for a conventional mortgage at better than average rates. The best mortgage pricing typically starts at 780, so a 740 will usually cost slightly more than a 780 over the life of the loan, but it is well above the minimum most lenders require.
Can I get a credit card with a 740 credit score?
Yes, including most rewards cards and many premium cards. Some issuers treat 740 as the minimum for their top travel and cash-back cards, so a 740 is often exactly the score those applications are built around, although approval also depends on your income and existing debts.
Is 740 a good credit score for a car loan?
Yes. A 740 will generally get you a prime auto loan rate, well below the rates offered to borrowers with fair credit. The best auto rates may start slightly higher, but the difference between a 740 and a 780 on a car loan is usually small.
What is the difference between a 740 and a 750 credit score?
Very little. Both are in the very good band on FICO, and lenders treat them almost identically. The difference is ten points on the same scale, and it does not cross any pricing tier, so there is no practical reason to prefer 750 over 740.
How long does it take to go from 740 to 800?
It depends on what is holding the score down. Lowering utilisation can add points within one or two billing cycles. Building a longer credit history takes years, and recovering from a late payment or a collection account can take months to years. With low utilisation and no missed payments, a 740 score can reach 780 or higher within a year or two.
The Bottom Line
Is a 740 credit score good? Yes, it is the first score in FICO’s very good range (740 to 799), it is 27 points above the national average of 713, and it qualifies you for most mortgages, auto loans, and rewards cards at better than average rates (Experian, 2025). It is also the bottom of its band: the best pricing usually starts at 780, and a single late payment can drop it back into the good range. The path from 740 toward 800 is mostly low credit utilisation, unbroken on-time payments, and time, with your oldest accounts kept open and your reports checked for errors along the way.
This article is general educational information only, not personal financial advice. Credit scoring models and lender standards change over time, so check your own scores and the terms of any specific offer before you apply.