A credit score of 750 is what most young working class adults dream about. In my twenties, I was proactive about getting up to that special range. This is because it opens opportunities for you, especially when you are trying to get a purchase financed.
And, it was harder than saving my first $2000 in the United States of America.
I know. You would think it would be easy to get into the very good credit range. But, it is not. This is due to the fact that it required me to be in debt so as to remit payments which builded my credit score month by month.
Yes- this credit score rating has to be built on debt. What do I mean by this, my good reader?
Well, any current debt payment is on your credit record. Payments toward a debt are reported to credit bureaus. The credit bureaus assign points based on whether you are consistent with your debt repayment or not. I talked about this on What You Must Know About Credit and Credit score. The points are what add up to be your credit score.
Okay, enough about the basics. Here is how to get a 750 credit score. I did it in 10 months with one debt- a credit card payment. I kid you not!
Is 750 A Good Credit Score?
750 is a good credit score for a 20 year old. Hell- for any adult in their 20’s, a credit score of 750 is good. This is because it lowers interest rate on any purchase you want financed. Here is what I did to get mine above 750 credit score, when I was in my twenties.
1. Get Diversified Credit Records
Remember when I mentioned lenders report to a credit bureau and the bureau compiles a report?
Well, that is called a credit report. It is what determines the points assigned to your credit score every month. Simply put, a good credit report will generate you positive points. A bad one will have points deducted on what you already have.
So, how do we maximize this process?
I want you to get a few debts under your debts. I know- it sounds contrary to my principles. As an avid reader of mine, you have probably picked up on me hating having a lot of debts, but hear me out. You are going to like this.
The few debts I mentioned earlier, could be already existing debts. This includes your car note, student loan debts, credit card debt or any other loan installment. You need at least two of these. This is to generate two or more reports from credit bureaus.
Let us say you have three debts- auto loan, student debt and a credit card debt. These are three debts you make payments on every month. The three credit bureau- Equifax, Experian and TransUnion, get three different reports from these three different lenders. As long as you pay these debts on time, these bureau will reward each debt with points.
As a result, these points add monthly to increase your overall credit score. The more debts, the better. But you know me, I do not recommend you risk going into debt just because you want a good credit score. Just work with the debts you currently have.
2. Do Not Abruptly Close Your Credit Card
On What Not To Do With Your Credit Card, I talked about how abruptly closing your credit card could cause a drop in your credit score. To get 750 credit score, do not cancel your credit card. Just let it age its way through expiration date. This is especially, when there is no maintenance fee associated with the credit card.
I am speaking from experience. The funny part of the experience, was the credit card was already paid off. My goal of closing it was to decrease my chances of spending with it, but I guess the credit bureau did not care.
It upset me immensely and I thought a great deal about why I was punished for it. So, why did the credit bureau deduct some points for closing the credit card?
It was because the credit card is no longer part of my active credit line. This impacts the length of your credit history. As a result, there is a temporary drop in your credit score.
Mine dropped by 70 points. I do not know what yours will dropped by, but it helps to make sure there is not pending transactions or debts before closing your credit card. Or else, it will drop by a ridiculous amount which is shocking.
Personally, I still recommend closing your credit card which is causing you money. If not, just keep it and let it age to its expiration date. It will not mess up your desire to get a 750 credit score fast.
3. Dispute Credit Report Error
Credit report errors happen all the time. You would think with the three big credit bureaus we have in the United States, errors of this sort will be eliminated. It is quite the contrary. In fact, I saw my first credit report error in 2017 when I was checking my score on credit karma.
My dear reader, could you believe a Sam’s Club card was added on my credit history?
The crazy thing about this credit report error was I never applied for a Sam’s Club credit card. So, I dug a little further and found the credit card was from Florida. That was when I knew I had to file a credit report error with Credit Karma.
It was easy, because they fixed it for me.
Having said that, always check your credit report for errors. Errors could bring down the credit score you are trying to get. Sometimes, it brings it down by a huge point. At least, mine did and I did not think it was funny.
Anyways, I wrote about how you could go about disputing an error on your credit report. You can read the blue highlighted article. It is how you fight back, when credit error tries to derail your hard-earned credit score.
4. Pay Your Bills On Time
This is pretty much common sense, is it not?
It is not easy sometimes. This is because some of us may have jobs, which pay us barely enough to cover bills. Debts do not wait though. The credit bureaus will still evaluate whatever reports lenders submit to them.
If you ever miss a debt payment deadline, some lenders usually give you a grace period. Others just go straight to reporting to the credit bureau. You cannot get above 750 credit score with a history of missed or late payments. So, try to pay your bills on time.
5. Keep Credit Card Usage Under 30% Utilization
A credit score of 750 is good, but do not max out your credit card doing it. What is a maxed-out credit card?
You have a maxed-out credit card, when you have reached the credit limit of your card. A maxed out card means your credit utilization ratio is 100%. It is bad to use 100% of your credit limit. Although credit card companies like this, credit bureaus do not. Credit bureaus ding you on that, because you are a high credit risk at this point.
Keeping your credit card utilization under 30% ensures there is no elevated credit risk. You could be trusted to pay your debts without much difficulty. Thus, you will be rewarded with credit points after each monthly payment.
How Long Does It Take To Get A 750 Credit Score?
It takes months to a few years to get a 750 credit score. I think it took me about 10 months or so. Reflecting back now, it was because I was in my twenties. I was much more motivated and carefree with debts.
Not that I am not motivated in my thirties, but I feel like you become a bit more cautious and reserved in your thirties. This is with respect to debt acquisition. At least, this is the point I am at right now in life. What about you?
Anyways, how long it takes you to get a 750 credit score depends on your current credit score. If you have a poor credit score, it will take you about a year or more. But, this time can get shorter than a year, when you are paying on multiple debts.
What Can I Get With A 750 Credit Score?
It is easy to get anything financed with a 750 credit score. Most lenders will offer loans with reasonable interest rates. This is because you are not considered a credit risk.
Is 750 a good credit score to buy a car?
Absolutely. Car dealerships will love you. This is because they know the chances of your bank denying you an auto loan is slim to none. The best part of it is, the interest rate which will come with the loan is reasonable.
On A Good Credit Score To Buy A Car article, I talked about how you could get a 5.18% interest rate with a very good credit score range. This is compared to the 14.08% interest rate, if your credit score was in the fair range or poor range. I recommend reading the blue highlighted article.
A 750 credit score got me my first car in the United States with a monthly car note of $208. Amongst all my friends during my twenties, I was the only one with a car note that low. I kid you not!
I still drive that car- my sweet Betty. Hahaha… I know. You probably had a car like that too. Mine is a faithful Toyota corolla that saw me through low paying jobs and college without breaking down. To top it off, the car note was not bad at all.
Now, that is what a 750 credit score can get you. Something of yours to enjoy without paying a ridiculous amount of money monthly to afford it. And that- my friend, is the power of a 750 credit score.
You get to have purchases financed with an interest so low, the monthly debt payment is not stressful. This is why I encourage young working class adults to work on their credit scores. If you can get it up to 740 or above, the working class life becomes a little easy.
How To Activate A Chime Card