Qualifying
Is 740 a good credit score?
Yes — a 740 credit score is in FICO's 'Very Good' range (740–799) and is the threshold where many lenders begin offering their best rates. You'll qualify for nearly all credit products on strong terms, well above the U.S. average.
The full picture
Where 740 falls on the FICO scale
On the 300–850 FICO scale, 740 is the entry point to the 'Very Good' band (740–799) — and a widely used industry threshold for top-tier pricing. It's comfortably above the U.S. average (mid-710s).
What a 740 score qualifies for
- Best-tier mortgage rates — 740 is a common cutoff where conventional loan pricing improves.
- Lowest available auto and personal loan rates for most lenders.
- Virtually all credit cards, including premium rewards and travel products.
- Strong negotiating position on rates and fees.
Is it worth pushing higher?
Above 740, the marginal benefit shrinks — most lenders treat 740 and 780 similarly for pricing, and the top 'Exceptional' tier (800+) adds little beyond what 'Very Good' already unlocks. Maintaining 740+ matters more than chasing a perfect score.
◆ ClearValue editorial analysis
Where 740 actually sits in today's mortgage market
The New York Fed's household debt data shows just how concentrated recent mortgage lending is at the top of the score range: the median credit score on a new mortgage origination was 775 in the most recent reported quarter, with almost no originations going to borrowers below 620 and few below 660 — the overwhelming majority of recent originations went to borrowers above 760. A 740 score clears most lenders' best-rate cutoff, but it's now on the lower edge of where the bulk of actual approved borrowers sit.
That's not a small market: the New York Fed reported $530 billion in loans newly originated in the first quarter of 2026 and $505 billion in loans in the second quarter — real volume concentrated among a credit-score band that starts right around where 'Very Good' begins. The practical takeaway is the same one in the section above: 740 still qualifies you for the best-rate tier, but in a market this concentrated at 760+, it's worth treating 740 as a floor to clear comfortably rather than a target to just barely reach.
Sources: Federal Reserve Bank of New York — Household Debt and Credit Report
Analysis by the ClearValue Editorial Team, applying our published scoring methodology.
This analysis combines cited public data (Federal Reserve, FDIC, CFPB, SBA, IRS, HHS, or similar primary sources, as cited above) with ClearValue's own math and comparison for this question — it is not proprietary ClearValue applicant data. Figures carry an as-of date; rates, limits, and program terms change, so verify current numbers at the linked primary sources before deciding. Educational information, not financial, legal, or tax advice.
The numbers
- 740–799 is FICO's 'Very Good' range; 740 is its entry point. — myFICO
- Borrowers with higher scores qualify for lower rates and more loan options; 740 is a common best-rate threshold. — CFPB
- 740 is well above the U.S. average FICO Score (mid-710s). — Experian
- Fannie Mae's Loan-Level Price Adjustment (LLPA) matrix uses 740 as a key pricing tier boundary for conventional mortgages — borrowers at or above 740 pay lower risk-based pricing adjustments than those below it. — Fannie Mae — LLPA Matrix
- The median credit score on new mortgage originations was 775 as of late 2025, with the large majority of recent originations going to borrowers scoring above 760. — Federal Reserve Bank of New York — Household Debt and Credit Report
Key takeaways
- 740 is 'Very Good' and the threshold where the best rates typically begin.
- Qualifies for nearly all products on strong terms, well above average.
- Above 740 the marginal benefit shrinks — maintaining it matters more than chasing 800.
- Keep utilization low and payments perfect to hold the tier.
Frequently asked questions
Is 735 a good credit score?
735 is in FICO's 'Good' range (670–739) — five points below the 740 cutoff for 'Very Good.' It still qualifies for solid rates on most credit products, but closing the small gap to 740+ can unlock the best-rate tier at many lenders.
Is 745 a good credit score?
Yes — 745 clears the 740 threshold into FICO's 'Very Good' range (740–799). It's past the entry point where many lenders begin offering their best rates, and well above the U.S. average FICO Score.
Is 730 a good credit score?
730 is in FICO's 'Good' range (670–739) — ten points below the 'Very Good' cutoff at 740. It qualifies for competitive rates on most products, though not always the single best pricing tier reserved for 740+.
Is 760 a good credit score?
Yes — 760 is solidly in FICO's 'Very Good' range (740–799), well past the 740 best-rate threshold and approaching (but not yet in) the 800+ 'Exceptional' tier. Most lenders treat 760 the same as 740 for pricing purposes.
Is 720 a good credit score?
720 is in FICO's 'Good' range (670–739) — just above the U.S. average FICO Score (mid-710s) but 20 points below the 740 'Very Good' threshold where the best rates typically begin.
Published 2026-05-22 · Updated 2026-09-03 · https://clearvaluelending.com/answers/is-740-a-good-credit-score