By Ashley Kilroy
(Last Updated – 02/2024)
A 735 credit score is considered a good score in the lending industry and can increase your access to financing, credit cards, and affordable interest rates. This credit score likely comes from a track record of consistent, healthy habits with debt. As a result, lenders typically feel comfortable with borrowers in this range, sometimes offering them unique benefits and more affordable terms to earn their business.
Whether you’re looking for a mortgage or a credit card with an increased spending limit, a 735 FICO® score can open financial doors for you.
Learn more about what this score can help you qualify for and how you might further build it below.
What Does a 735 Credit Score Mean?
Lenders consider a 735 FICO score to be a “good” credit score. Credit score ranges are usually from 300 to 850, with higher scores indicating better creditworthiness. Here’s a breakdown of credit score ranges:
• Poor: 300-579
• Fair: 580-669
• Good: 670-739
• Very Good: 740-799
• Excellent: 800-850
A FICO credit score of 735 falls within the “Good” range, meaning you have a solid credit history. Lenders often offer favorable terms, such as lower interest rates, to individuals with scores in this range. It’s also bordering on the “Very Good” category, meaning you could have an even better standing credit-wise by building your score by five points.
💡 Quick Tip: Some personal loan lenders can release your funds as quickly as the same day your loan is approved.
How to Get a 735 Credit Score
Borrowers can achieve a “good” credit score of 735 through healthy financial practices:
• Payment history: Timely payment of bills, including credit cards, loans, and other debts, is crucial. Late payments or defaults can damage your score.
• Credit utilization: This is the ratio of your credit card balances to your credit limits. Maintaining no more than a 30% credit utilization rate (closer to 10% is even better) demonstrates responsible credit management. For instance, if you have a credit card with a limit of $10,000, spending $3,000 or less monthly with it can help build your credit score.
• Length of credit history: The longer your credit history, the better. For example, getting a credit card at 20 years old, paying it on time, and keeping the account open can be a positive vs. closing a line of credit you don’t use that often.
• Credit mix: A diverse mix of credit types, including credit cards, loans, and mortgages, can have a positive impact on your credit profile.
• New credit: Opening multiple new credit accounts within a month or two may be risky from a lender’s perspective. Be cautious about applying for too much credit within a short timeframe.
What Else Can You Get with a 735 Credit Score?
Having a 735 credit score can provide various financial advantages and open up opportunities. Here’s an explanation of the benefits that may be associated with having and maintaining a good credit score:
• Loan access: Lenders use credit scores to assess risk when borrowers apply for loans. A 735 FICO score indicates responsible credit behavior, potentially making you more likely to be approved for loans, including mortgages, car loans, and personal loans.
• Preferred interest rates: A good credit score may translate into lower interest rates because lenders may perceive less risk in lending. In essence, lenders compete for low-risk borrowers and use more affordable interest rates to attract the most reliable borrowers. This dynamic could work in your favor, ultimately saving you money over the life of the loan.
• Favorable loan terms: Borrowers with a credit score of 735 may qualify for more favorable loan terms. For example, you might enjoy waived fees, increasing loan affordability.
• Expanded access to credit: A good credit score can give you access to a wider range of credit options. For instance, you might receive offers for more generous credit card rewards or for increased lines of credit.
• Stronger tenant profile: Landlords often check the credit histories of potential tenants to assess their financial responsibility. A good credit score can enhance your attractiveness as a tenant, making it easier to rent an apartment.
• More affordable utility installation: Some utility companies may check your credit score before providing services. A good credit score can allow you to avoid security deposits for cable or internet equipment.
Can I Get a Credit Card with a 735 Credit Score?
When you apply for a credit card, the company typically reviews your credit as part of how they determine if they want to do business with you. Often, credit card issuers are looking for a score of 670 or higher.
A 735 FICO credit score demonstrates a history of responsible borrowing and spending. As a result, you may qualify for many cards and rewards programs with this credit score. Your score may also help you obtain lower interest rates and expanded credit limits.
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Can I Get an Auto Loan with a 735 Credit Score?
Auto lenders prefer borrowers with credit scores of at least 661, with higher scores resulting in better terms and rates. Therefore, a 735 FICO score will qualify you for an auto loan and may help you lower your interest rate.
Remember, the rest of your financial circ*mstances, including your monthly income and ability to make a down payment, can affect what kind of auto loan you receive.
Can I Get a Mortgage with a 735 Credit Score?
A 735 credit score exceeds the usual qualification standards for all mortgage types. As a result, you can qualify for a mortgage with that score if you meet the other standards, including a debt-to-income ratio under 43%, a consistent employment history, and a house within your borrowing limit.
This credit score can help you get better interest rates because it surpasses minimum scores for all mortgages, including:
• 620 for conventional loans
• 700 for jumbo loans
• 500 with FHA loans with a 10% down payment or 580 with a 3.5% down payment
• 620 for VA loans
• 580 for USDA loans
Can I Get a Personal Loan with a 735 Credit Score?
Lenders prefer borrowers with credit scores of at least 670 for personal loans. So, a 735 credit score can qualify you for lower terms and more favorable rates. However, like other loan types, personal loans require a robust financial profile. Borrowers also need a low debt-to-income ratio and steady monthly income to qualify.
The Takeaway
A credit score of 735 is in the “good” range of FICO scores, helping to position you to borrow at favorable rates and potentially qualify for numerous loan types. The path to achieving and maintaining a 735 credit score involves cultivating healthy financial habits, encompassing timely payments, judicious credit utilization, a diverse credit mix, and applying to new credit sparingly.
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