A 750 credit score is considered a very good FICO® Score. With this score, you will be eligible for all types of loans that lenders have to offer. The chances of a lower interest rate are also higher with a 750 credit score. According to Experian® data, someone with a 750 credit score would pay an average mortgage rate of 2.75% for a $300,000 loan for a period of 30 years. Compare that to the 4.11% of a person with a fair credit score in the range of 620-629 who would pay on the same loan.
As mentioned before, you could qualify for all types of loans: conventional, government-insured, fixed-rate, or adjustable-rate loans. Conventional loans are not supported by the government. You may have to put down a bigger down payment, usually 20%, for lower interest rates. Government-backed loans like those from the Federal Housing Administration (FHA), United States Department of Agriculture (USDA), or United States Department of Veterans Affairs (VA) (if you are in active service, a veteran, or a surviving spouse) are a great option for anyone with fair to excellent credit.
Other factors that matter in getting the best out of your loan are your down payment amount, the term of the loan, and the property location. Your credit score is an important factor for lenders because it indicates the likelihood that you will pay back the loan on time. Apart from your credit score, lenders also look at your income, cash reserves, employment status, and debt-to-income ratio.
