720 Credit Score: Is it Good or Bad?

A credit score of 720 is seen as good by most lenders. It shows that you have a strong history of managing money well and can handle credit with responsibility. With this score, you can enjoy excellent financial opportunities, such as getting approved for credit cards, car loans, and even home loans more easily and with more favourable terms. You may also qualify for lower loan rates or receive loan offers with reduced interest rates, helping you save money over time. Lenders trust people with this score, which gives you a wide range of choices and greater financial freedom.

How To Improve Your 720 Credit Score

Reaching a credit score of 720 is a big achievement. However, moving into the 760+ range is considered “excellent” and can offer even more financial rewards. To continue building your score, consider the following strategies:

Maintain low credit utilisation: Maintain low credit utilisation: Try to use only a small portion of your available credit less than 30%, and ideally under 10%. This shows lenders that you manage credit wisely without being overly dependent on it.
Request credit limit increases: If your bank raises your credit limit but your spending remains the same, your credit utilisation goes down, which supports score growth. Just make sure not to increase your actual spending.
Make all payments on time: Your payment history has the most significant impact on your credit score. Paying bills like credit cards, utilities, and EMIs on loans before or on the due date builds trust with lenders.
Reduce high-interest debts: Paying off credit cards and loans with high interest rates not only saves money but also improves your debt-to-income ratio, making you look more financially stable.
Limit new credit applications: Every time you apply for credit, a hard inquiry is added to your credit report. Having too many in a short period can slightly lower your score, so apply only when truly necessary.

Staying consistent with these practices will help your score grow over time, unlocking even greater financial opportunities.

Benefits of a Very Good Credit Score

A very good credit score isn’t just a number it’s a gateway to top-tier financial advantages. Here’s what it unlocks:

Better loan approvals with faster processing.
Lower interest rates on credit cards and loans.
Higher credit card limits, giving you more financial flexibility.
Stronger negotiating power when applying for loans or refinancing.

In short, a very good score gives you more control, better options, and significant savings potential in your financial life.

Importance Of Good Credit History

Your credit score offers a quick snapshot, but your credit history is the full record of responsible credit use. Here’s why it matters:

A longer credit history helps your score: The more years you’ve been using credit responsibly, the more stable and trustworthy you appear to lenders. It shows you have long-term credit experience.
A clean payment record builds reliability: Paying on time—month after month—proves dependability. Lenders look for this consistency before approving credit or loans.
Older accounts in good standing strengthen your profile: Even if you don’t use them often, keeping older credit accounts open shows a longer credit journey. As long as they remain positive, they benefit your score.
Lenders trust a solid history: When you apply for a new credit card, car loan, or mortgage, a strong credit history speeds up approvals and shows you’re low risk.

How To Build Up Your Credit Score

If you’ve reached 720 and want to keep moving higher, the next steps are important. The jump from very good to excellent is achievable with the right habits applied consistently.

Use credit regularly but wisely—small, recurring expenses that you pay off monthly work best.
Keep debt low and avoid carrying high balances.
Set up payment reminders or autopay to ensure you never miss a due date.
Check your credit reports annually to catch errors that might be holding you back.
Be patient—credit growth takes time, but with discipline, your score can rise steadily.