The Dime Daily

Is a 740 Credit Score Good?

Updated 2026 · FICO Score 8 scale · U.S. average: 714

Yes — 740 is the threshold for 'very good' credit (740–799), one of the most important credit milestones.

FICO bucket: Very Good (740–799)

Skip the fluff — TL;DR

740 is a major milestone: it's the score where most lenders put you in their best pricing tier for mortgages and auto loans. You now have access to every mainstream financial product at near-optimal rates. The U.S. average is 714 — you're 26 points above it.
FICO RangeCategoryYour score
800–850Exceptional
740–799Very Good740 ← you
670–739Good
580–669Fair
300–579Poor

What a 740 credit score gets you

🏠 Mortgage

You're now in the top pricing tier at most lenders. Rates at 740 and above are often identical to those offered at 800+. This is the most impactful credit milestone for mortgage borrowers.

Typical rate: ~5.6–6.2% (30-year fixed)— estimate, varies by lender, LTV, and loan type

🚗 Auto Loan

Best available rates from virtually all auto lenders. 0% promotions are standard.

Typical rate: ~2.5–5.5% APR

💳 Credit Cards

Every card on the market. You'll be approved for Amex Platinum, Chase Sapphire Reserve, and any other premium product.

🏢 Apartment Rental

No issues. 740 is well above every standard threshold.

How 740 compares to the U.S. average

The U.S. average FICO is 714. At 740, you're 26 points above average and in the top ~35% of American credit scores.

U.S. average (714)740
300 (min)714 avg850 (max)

How to improve a 740 credit score

  1. 1

    Maintain, don't chase. Each additional point above 740 delivers diminishing returns.

  2. 2

    Keep utilization under 10% — it's what protects your score at this range.

  3. 3

    Continue perfect payment history. One missed payment at this score level is particularly damaging because it drops you into a range where rates worsen.

  4. 4

    Don't apply for new credit unless the benefit is clearly worth the temporary inquiry dip.

  5. 5

    800 is the next meaningful milestone — but it delivers mostly bragging rights, not meaningfully better rates.

💰 Dime's Take

740 is the magic number most mortgage professionals cite as the point where rates stop improving meaningfully. A 740 borrower and an 820 borrower often get the same mortgage rate at the same lender. If you've hit 740, your job is now to maintain it, not chase more points — the marginal value of each additional point above 740 is much smaller than the value of the points that got you here.

Nearby credit scores

Is 720 a good credit score?Is 730 a good credit score?Is 750 a good credit score?Is 760 a good credit score?Is 780 a good credit score?

Frequently asked questions

Yes — 740 is the threshold for 'very good' credit (740–799), one of the most important credit milestones. FICO defines "good" credit as 670–739. Very Good credit (740–799) falls within or above that range, meaning you have access to most mainstream financial products at competitive rates.

With a 740 credit score: Mortgages — You're now in the top pricing tier at most lenders. Rates at 740 and above are often identical to those offered at 800+. This is the most impactful credit milestone for mortgage borrowers. Auto loans — Best available rates from virtually all auto lenders. 0% promotions are standard. Credit cards — Every card on the market. You'll be approved for Amex Platinum, Chase Sapphire Reserve, and any other premium product. Apartment rentals — No issues. 740 is well above every standard threshold.

Maintain, don't chase. Each additional point above 740 delivers diminishing returns. Keep utilization under 10% — it's what protects your score at this range. Continue perfect payment history. One missed payment at this score level is particularly damaging because it drops you into a range where rates worsen. Don't apply for new credit unless the benefit is clearly worth the temporary inquiry dip. 800 is the next meaningful milestone — but it delivers mostly bragging rights, not meaningfully better rates.

The U.S. average FICO is 714. At 740, you're 26 points above average and in the top ~35% of American credit scores.

FICO scores range from 300 to 850. The five ranges are: Poor (300–579), Fair (580–669), Good (670–739), Very Good (740–799), and Exceptional (800–850). Most lenders use FICO scores, though some use VantageScore which uses the same 300–850 range with slightly different cutoffs.
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