One of the most important things that determines the interest rates you can get on loans and credit cards is your credit score. For example, according to FICO, a credit score of 728 is “Good.” To be clear, what does that mean for the interest rates you can expect?
If you have a credit score of 728, this guide will tell you everything you need to know about the interest rates you can get.
An Overview of 728 Credit Score
First, let’s do a quick rundown on what a 728 credit score means.
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A credit score of 728 falls in the “Good” credit range, which spans 670-739 on the FICO scoring model.
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Approximately 21% of consumers have credit scores in the “Good” range.
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People with a 728 credit score are seen as acceptable borrowers by most lenders. They can qualify for a wide variety of credit products.
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However, with a 728 score falling on the lower end of the “Good” range, you likely won’t get approved for the absolute best rates or terms.
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Only 45% of consumers have credit scores lower than 728, so there’s still room for improvement.
A credit score of 728 means that your credit history has been pretty well taken care of. Late payments or high balances may occur occasionally. But generally, you demonstrate responsible credit behavior.
How a 728 Credit Score Affects Interest Rates
In most cases, the higher your credit score, the lower the interest rate lenders will offer you. This is because your credit score represents risk to the lender.
They see you as less of a risk if your credit score is high. As a result, they reward better credit with lower rates.
Although a 728 credit score is decent, it’s not high enough to get you the rock-bottom rates lenders reserve for only the most creditworthy borrowers.
However, you can expect your 728 credit score to qualify you for competitive interest rates on par with other borrowers in the “Good” credit tier.
Let’s take a look at the average interest rates you can expect with a 728 credit score across different credit products:
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Mortgages – For a 30-year fixed-rate mortgage, expect interest rates around 4.5-6%.
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Auto Loans – For a new auto loan, expect interest rates around 5-8%. For a used car, expect rates of 6-10%.
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Personal Loans – Expect personal loan interest rates in the range of 8-18%.
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Credit Cards – For most credit cards, expect APRs between 15-25%.
These rates can vary based on economic conditions as well as your specific credit profile. But generally, this gives you an idea of what ballpark to expect with a 728 score.
How to Get Better Interest Rates by Improving Your Credit
While a 728 credit score provides access to reasonably good interest rates, you may be curious about ways to improve it further.
Here are some tips to raise your credit score and potentially unlock even lower interest rates:
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Pay bills on time. Payment history has the biggest impact on your credit score. Set up autopay or reminders to avoid late payments.
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Lower credit utilization. Try to keep balances below 30% of your credit limit on each card.
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Monitor credit reports. Dispute any errors or outdated information bringing your score down.
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Limit hard inquiries. Each application triggers a hard inquiry that can ding your score temporarily. Only apply for credit when necessary.
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Ask for credit limit increases. Higher limits help keep utilization low for a credit boost.
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Become an authorized user. Being added as an authorized user on a spouse or parent’s old account can help.
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Diversify credit. Having a mix of credit types (mortgage, credit cards, auto, etc) can improve your score.
By mastering good credit habits and giving your score a boost into the “Very Good” or “Exceptional” ranges, you can potentially unlock interest rates 1-3% lower than what a 728 score qualifies you for.
The Takeaway
A FICO credit score of 728 is considered “Good” and gives you access to reasonably competitive interest rates on loans and credit cards. However, it’s not high enough to get you the rock-bottom rates reserved only for tip-top credit.
If your goal is to get approved for the lowest interest rates possible, continuing to improve your credit score is key. But overall, a 728 score keeps interest rates affordable and accessible across all the major credit products most consumers need.
Hopefully this breakdown gives you a better sense of what interest rate range makes sense for your 728 credit score. Always compare rates from multiple lenders and look for opportunities to improve your credit profile. With good financial habits over time, better rates will be within your reach!
Staying the course with your Good credit history
Your 728 credit score puts you solidly in the mainstream of American consumer credit profiles, but some additional time and effort can raise your score into the Very Good range (740-799) or even the Exceptional range (800-850). To keep up your progress and avoid losing ground, steer clear of behaviors that can lower your credit score.
Factors that affect your credit score include:
Payment history. Delinquent accounts and late or missed payments can harm your credit score. A history of paying your bills on time will help your credit score. Its pretty straightforward, and its the single biggest influence on your credit score, accounting for as much as 35% of your FICO® Score.
Credit usage rate. To determine your credit utilization ratio, add up the balances on your revolving credit accounts (such as credit cards) and divide the result by your total credit limit. If you owe $4,000 on your credit cards and have a total credit limit of $10,000, for instance, your credit utilization rate is 40%. You probably know your credit score will suffer if you “max out” your credit limit by pushing utilization toward 100%, but you may not know that most experts recommend keeping your utilization ratio below 30% to avoid lowering your credit scores. Credit usage is responsible for about 30% of your FICO® Score.
Length of credit history. Credit scores generally benefit from longer credit histories. Theres not much new credit users can do about that, except avoid bad habits and work to establish a track record of timely payments and good credit decisions. Length of credit history can constitute up to 15% of your FICO® Score.
Total debt and credit. Credit scores reflect your total amount of outstanding debt you have, and the types of credit you use. The FICO® Score tends to favor a variety of credit, including both installment loans (i.e., loans with fixed payments and a set repayment schedule, such as mortgages and car loans) and revolving credit (i.e., accounts such as credit cards that let you borrow within a specific credit limit and repay using variable payments). Credit mix can influence up to 10% of your FICO® Score.
Recent applications. When you apply for a loan or credit card, you trigger a process known as a hard inquiry, in which the lender requests your credit score (and often your credit report as well). A hard inquiry typically has a short-term negative effect on your credit score. As long as you continue to make timely payments, your credit score typically rebounds quickly from the effects of hard inquiries. (Checking your own credit is a soft inquiry and does not impact your credit score.) Recent credit activity can account for up to 10% of your FICO® Score.
How to improve your 728 Credit Score
A FICO® Score of 728 provides access to a broad array of loans and credit card products, but increasing your score can increase your odds of approval for an even greater number, at more affordable lending terms.
Additionally, because a 728 FICO® Score is on the lower end of the Good range, youll probably want to manage your score carefully to prevent dropping into the more restrictive Fair credit score range (580 to 669).
The best way to determine how to improve your credit score is to check your FICO® Score. Along with your score, youll receive information about ways you can boost your score, based on specific information in your credit file. Youll find some good general score-improvement tips here.
Is 728 A Good Credit Score? – CreditGuide360.com
FAQ
Is 728 a good credit score?
A 728 credit score is a good credit score. The good-credit range includes scores of 700 to 749, while an excellent credit score is 750 to 850, and people with scores this high are in a good position to qualify for the best possible mortgages, auto loans and credit cards, among other things. Credit Rating: 728 is a good credit score.
Can you get a car loan with a 728 credit score?
Compare credit cards with 0% introductory APR offers if you want to make big purchases or a balance transfer that will take months to pay off. You should be able to get approved for a decent car loan with a 728 credit score, considering that more than 60% of all auto loans go to people with credit scores below 740.
What if my FICO score is less than 728?
53% of consumers have FICO ® Scores lower than 728. The best way to determine how to improve your credit score is to check your FICO ® Score. Based on certain information in your credit report, you will also get information about how you can raise your score. You’ll find some good general score-improvement tips here.
What does a 661-780 credit score mean?
A score in this range indicates that you’re financially responsible when it comes to managing your credit. Average APR rates for someone with a credit score of 661-780 are 5. 82% for a new car, or 7. 83% if you’re buying a used car. If your credit score is between 601 and 660, this is classed as Nonprime.
Is 690 a good credit score?
Your credit score of 690 is about average for American consumers. However, with a little more work and time, you can raise it to the Very Good range (740–799) or even the Exceptional range (800–850). To keep up your progress and avoid losing ground, steer clear of behaviors that can lower your credit score.
Can you get a credit card with a 781-850 credit score?
The current average APR rate for a person with a 781-850 credit score when buying a new car is 4.75% and 5.99 when buying a used car. It’s possible to get a credit card with no credit, but you need to know which types of accounts to apply for (and which applications to avoid as well). A credit score between 661 and 780 is considered Prime.
What loan can I get with a 728 credit score?
Unsecured Personal Loans: These loans do not require collateral and are based solely on your creditworthiness. With a credit score of 728, you are more likely to qualify for unsecured personal loans with favorable terms.
Can I buy a house with a 728 credit score?
How rare is an 800 credit score?
An 800 credit score is relatively rare, with approximately 23% of Americans achieving this “exceptional” FICO score range (800-850), according to The Motley Fool.
What can you do with a 728 credit score?
A FICO® Score of 728 provides access to a broad array of loans and credit card products, but increasing your score can increase your odds of approval for an even greater number, at more affordable lending terms.