Brad HansonA 716 credit score is considered a good credit score by many lenders.
Credit scores help lenders assess a borrower’s potential risk and are based on credit reports, which detail your credit history. A good credit score signals a higher likelihood of repaying borrowed money.
Good credit can be a game-changer. It can increase your chances of approval for credit cards or loans and help secure better interest rates and terms.
We’ll review how to build your credit and maintain a good credit score — and if you’re aiming higher, how to increase your credit scores from good to excellent.
- How to improve your 716 credit score
- Understanding the benefits of a good credit score
- Next steps: Learn more about your credit score
How to improve your 716 credit score
While there’s no exact formula to achieve a specific score, you can aim to get within a general score range. Sticking to these principles over time can raise your scores, making you a better credit risk in lenders’ eyes.
There are key factors affecting your credit scores — though they aren’t weighted equally.
Here’s a look at what goes into your FICO® Score 8, the most widely used scoring model.
- Payment history (35%): This demonstrates whether you pay your debts on time. Creditors prefer applicants who pay on time, every time.
- Amounts owed (30%): This indicates how much debt you have in relation to your available credit (known as your credit utilization rate). A good rule of thumb is to try to keep your credit use at 30% or below of your combined credit limits.
- Length of credit history (15%): This is how long you’ve had open credit accounts. Generally, the older your accounts, the better.
- Credit mix (10%): This takes into account the different types of credit you have in your name, including installment loans and credit cards. Creditors may want to see that you can handle various types of credit well.
- New credit (10%): Applying for credit can trigger a hard inquiry, which can lower your scores by a small amount.
Percentage of generation with 700–749 credit scores
| Generation | Percentage |
|---|---|
| Gen Z | 24.3% |
| Millennial | 16.1% |
| Gen X | 15.3% |
| Baby boomer | 15.8% |
| Silent | 12.8% |
“Good” score range identified based on 2023 Credit Karma data.
Understanding the benefits of a good credit score
Having a good credit score can open the door to better lending options. Though credit scoring models vary, scores from the high 600s to mid-700s (on a scale of 300 to 850) are generally regarded as good.
In general, the higher your credit scores, the better your chances of getting loans with attractive terms, including lower rates and fewer fees. This can save you quite a lot over the life of a loan.
Age of open accounts by credit score range
| Credit score range | Average age (years) |
|---|---|
| 300–639 | 2.4 |
| 640–699 | 3.6 |
| 700–749 | 4.0 |
| 750–850 | 7.5 |
Ranges identified based on 2023 Credit Karma data.
What kind of credit card can I get with a 716 credit score?
With good credit scores, you’re more likely to qualify for attractive credit card rewards like cash back, travel perks or an introductory 0% APR offer that can help you save on interest for a period of time.
Keep in mind that even with good credit, some of the most exclusive credit cards may still be out of reach. But that doesn’t mean you don’t have a lot of great options. When it comes to which type of credit card to consider, the best card for you depends on your spending habits and goals.
Here are some types of credit cards that may fit your needs:
- Cash back credit cards: A cash back credit card can be a great choice if you value the ease of earning rewards. As you spend money using the card, you’ll earn cash back that can be applied to your bill or transferred to a bank account. Some cash back cards earn a flat rate across all purchases, while others earn elevated rewards in certain bonus categories.
- 0% intro APR cards: If you’re planning a large purchase soon or need to pay off debt, you might want to consider credit cards with a 0% intro APR offer. You’ll avoid interest charges on new purchases for a specified period, provided you make at least the minimum payments due on your statement on time.
- Balance transfer credit cards: Balance transfer credit cards allow you to move debt from an existing card to a new one with a lower interest rate. If you draw up a repayment plan, these cards can be a good way to manage debt.
- Travel rewards credit cards: For frequent travelers, a travel rewards credit card could be the ideal option. Perks can include access to airport lounges, TSA PreCheck/Global Entry application fee credits and priority boarding.
What kind of personal loan can I get with a 716 credit score?
While the minimum credit score required for approval varies by lender, a score in the good range is typically strong enough to qualify for a personal loan.
When you apply for a personal loan, lenders usually evaluate your credit history, income and existing debt levels.
Here are some of the most common uses of personal loans for borrowers with good credit:
- Debt consolidation loan: A debt consolidation loan allows you to combine multiple debt balances into a single new account. If you’re able to consolidate your debt into one personal loan with a lower overall interest rate, it may help you save on interest charges and pay off your debt faster.
- Major purchase loan: If you’ve got a large purchase to make and don’t want to use a credit card, it may make sense to take out a personal loan instead if you want to spread your payments out over time.
- Home improvement loan: If you don’t want to (or can’t) tap your home’s equity, you may want to take out a personal loan for home improvements.
See our picks for the best low-interest personal loans.
What kind of mortgage can I get with a 716 credit score?
A good credit score can put you in a strong position to buy a house.
But lenders consider more than just your credit scores when reviewing a mortgage application. Factors such as payment history, debt-to-income ratio, down payment and assets are also important.
While there isn’t a universal credit score requirement for mortgages, different loan types have typical credit score requirements, and each lender can set its own criteria.
- Conventional loans: Issued by private mortgage lenders, these types of loans aren’t part of government programs. While you can generally get a loan with credit scores above the mid-600s, having scores in the mid-700s or higher boosts your chances of securing a competitive interest rate.
- FHA loans: These mortgages are issued by private lenders but insured by the Federal Housing Administration. You’ll need a minimum credit score of 580 for a 3.5% down payment and 500 for a 10% down payment.
- VA loans: Backed by the Department of Veteran Affairs, these loans are designed for eligible veterans and active-duty service members. VA loans don’t have minimum credit or down payment requirements, but you’ll still need to meet your lender’s credit and income standards to qualify.
- USDA loans: Backed by the U.S. Department of Agriculture, these loans help low-income borrowers buy homes in rural areas. USDA loans have no minimum credit score requirement.
What kind of auto loan can I get with a 716 credit score?
The best auto loan rates are typically available to people with good-to-excellent credit, but what “good” means can vary among lenders. In addition to base models like FICO and VantageScore, lenders might also check industry-specific scores such as FICO® Auto Scores.
It’s important to shop around and compare offers to find the best terms available. Rates at car dealerships may be higher than those offered by banks, credit unions or online lenders.
You may want to get a preapproved car loan to strengthen your negotiating power at the dealership. A preapproval letter shows that you’ve done your homework and won’t accept subpar financing. But keep in mind that preapproval can result in a hard inquiry, which may temporarily lower your credit score by a small amount.
If you already have a car loan and your credit has improved since you first got it, refinancing could potentially get you a better rate.
Next steps: Learn more about your credit score
Having good credit can mean having more access to borrow money with better terms — but the very best rates and products tend to be reserved for those with excellent credit.
The first step in elevating your credit from good to excellent is understanding your credit scores and reports.
You can check your TransUnion and Equifax credit reports for free on Credit Karma.
Regularly reviewing your credit helps you catch errors early and understand the factors influencing your score. With Credit Karma’s free credit monitoring, you’ll receive alerts and tips to help improve your credit.
If you find inaccuracies on your credit report, you should dispute the errors promptly by contacting the credit bureaus.
*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.