What a 740 credit score means
A 740 is Very good on FICO's scale (740 to 799), 60 points below Exceptional at 800. It clears FHA's 580 line for 3.5% down and the 620 many conventional lenders look for, so on a conventional loan the score now mostly sets the price. On a $300,000 conventional purchase loan at 80% loan-to-value, Fannie Mae's fee for this score band is 0.875%, or $2,625; at 760 to 779 it would be $1,875.
Where 740 sits in the Very good band
Compared with everyone else
FICO's fall 2026 report found 10.5% of scorable consumers below 550 and 48.1% at 750 or higher on FICO Score 8. A 740 sits between those groups, 10 points short of 750. A 740 is 26 points above 714 (the average) and 4 points below 744 (the median). FICO, fall 2026.
The same number on other scales
FICO 8, 9, 10 and 10T and VantageScore 3.0 and 4.0 all run 300 to 850, so 740 means the same position on each scale, though not the same band label: VantageScore tiers vary by publisher. FICO's auto and bankcard scores run 250 to 900. Your scores from different models and bureaus are usually different numbers. Every scale, explained.
Lender milestones from 500 to 800
A 740 clears 10 of the 13 cutoffs on our list. The next one is 760, 20 points away: next pricing band.
| Score | What changes there | From 740 |
|---|---|---|
| 500 | FHA floorFHA can insure loans for scores from 500 to 579 with at least 10% down. | Cleared |
| 580 | FHA with 3.5% downAt 580 FHA allows the 3.5% minimum down payment, and FICO calls the band "Fair". | Cleared |
| 620 | Common lender minimumMany lenders still require 620 for conventional loans, even after Fannie Mae dropped its own floor in automated underwriting. | Cleared |
| 640 | Next pricing bandFannie Mae's pricing grid steps every 20 points from 640 up to 780. | Cleared |
| 660 | Next pricing bandAnother 20-point step on Fannie Mae's loan-level pricing grid. | Cleared |
| 670 | FICO "Good"FICO labels 670 to 739 as Good. | Cleared |
| 680 | Next pricing bandAnother 20-point step on Fannie Mae's loan-level pricing grid. | Cleared |
| 700 | Next pricing bandAnother 20-point step on Fannie Mae's loan-level pricing grid. | Cleared |
| 720 | Next pricing bandAnother 20-point step on Fannie Mae's loan-level pricing grid. | Cleared |
| 740 | FICO "Very good"FICO labels 740 to 799 as Very Good, and it is another pricing step. | Cleared |
| 760 | Next pricing bandAnother 20-point step on Fannie Mae's loan-level pricing grid. | 20 points to go |
| 780 | Best mortgage pricing band780 is the top band on Fannie Mae's loan-level pricing grid. | 40 points to go |
| 800 | FICO "Exceptional"FICO labels 800 and up as Exceptional. Past this point, extra points rarely change a price. | 60 points to go |
Mortgages at 740
FHA
FHA rules allow 3.5% down
FHA's rules let a minimum decision credit score of 580 or higher qualify for maximum financing, which is 3.5% down on a purchase. At 740 you're 160 points above that line. On a $300,000 home, 3.5% is $10,500.
HUD's rules, per Mortgagee Letter 2026-11, which keeps the 580 and 500 lines for every score model FHA accepts. Lenders often set higher minimums, called overlays. FHA score rules in full.
Conventional
Clears the common minimums
At 740 you clear the 620 many lenders still require and Fannie Mae's manual-underwriting minimums (620 fixed, 640 ARM, on Classic FICO), though its eligibility matrix can ask for more depending on down payment and debt-to-income. From here, the score mostly changes the price.
Sources: Fannie Mae Selling Guide B3-5.1-01 and the DU 12.0 release notes. Conventional score rules in full.
What Fannie Mae charges at this score
Purchase loan, 75.01% to 80% loan-to-value, $300,000 loan
$2,625
0.875% of the loan, band 740 to 759
At 760 to 779, the next band up, the fee is 0.625%, or $1,875. That's $750 less on the same loan, and 20 points away. The top band, 780 or higher, pays $1,125.
| Score band | Fee | On $300,000 |
|---|---|---|
| 780 or higher | 0.375% | $1,125 |
| 760 to 779 | 0.625% | $1,875 |
| 740 to 759740 is here | 0.875% | $2,625 |
| 720 to 739 | 1.25% | $3,750 |
| 700 to 719 | 1.375% | $4,125 |
| 680 to 699 | 1.75% | $5,250 |
| 660 to 679 | 1.875% | $5,625 |
| 640 to 659 | 2.25% | $6,750 |
| 639 or lower | 2.75% | $8,250 |
This is a one-time loan-level price adjustment (LLPA) from Fannie Mae's matrix dated 09.30.2026, which uses one grid for Classic FICO and VantageScore 4.0 (FHFA). Lenders usually build it into your rate rather than billing it, other adjustments can apply, and rates change daily. How the fee becomes your rate.
Car loans at 740
Experian sorts auto borrowers into tiers by VantageScore 4.0. If your VantageScore 4.0 is 740, you'd be in its prime tier (661 to 780), 41 points below super prime at 781. Many auto lenders pull a FICO Auto Score (250 to 900) instead, so your tier at a given dealer can differ.
| $30,000 over 60 months | Prime (661 to 780)this score | Super prime (781 or above)next tier up |
|---|---|---|
| New car | ||
| Average APR | 6.15% | 4.41% |
| Monthly payment | $582.08 | $558.06 |
| Total interest | $4,924.80 | $3,483.60 |
| Used car | ||
| Average APR | 8.81% | 6.29% |
| Monthly payment | $619.99 | $584.04 |
| Total interest | $7,199.40 | $5,042.40 |
At these averages, moving from prime to super prime would cut total interest by $1,441.20 on the new-car loan and $2,157.00 on the used one.
Averages from Experian's State of the Automotive Finance Market for Q2 2026, as published by Experian on Sep 10, 2026. They are averages across many loans, not offers. Payments use standard amortization with a fixed rate, no fees and no down payment. Credit scores and car loans.
What usually holds a score at 740
For files in this band, most of what's left to manage is timing: what your cards report on the statement date, and how recently you opened or applied for something.
The balance on statement day
FICO says 0% utilization can keep you from the maximum, and lower is better above that. Some people let one card report a small balance and the rest report zero, a forum technique called AZEO; it isn't an official FICO rule. See the best utilization percentage.
New accounts before a big loan
Hard inquiries count in FICO for 12 months. Before a mortgage, it's common to hold off on new cards and loans. Read how long inquiries last.
Closing old cards
Closing a card removes its limit from your utilization math right away. What closing a card changes explains when it's still worth doing.
Errors before you apply
A wrong late payment matters most right before a mortgage. Check all three reports and dispute real errors early, because a bureau generally has 30 days to reinvestigate.
Nobody outside FICO and VantageScore can tell you how many points any one change is worth, because it depends on everything else in your file. These are the places to look, not a forecast.
Common questions about a 740
Is 740 a good credit score?
FICO labels 740 to 799 as Very good, so 740 is Very good, 60 points below Exceptional. It is 26 points above 714, the average U.S. FICO Score in FICO's fall 2026 report.
Can you get a mortgage with a 740 credit score?
FHA allows 3.5% down at 580 or higher, so 740 meets FHA's own score rule, though lenders can set higher minimums. It also meets the 620 many lenders want for conventional loans. Fannie Mae's fee at this score is 0.875% of the loan at 80% loan-to-value, $2,625 on $300,000.
What car loan rate goes with a 740 credit score?
Experian's Q2 2026 data puts a VantageScore 4.0 of 740 in its prime tier (661 to 780), where the average APR was 6.15% for new cars and 8.81% for used. At the new-car average, a $30,000 loan over 60 months works out to about $582.08 a month. Those are averages, not offers, and your lender may use a different score.
Sources
- What is a credit score? (FICO score ranges), myFICO
- What's in my FICO Scores?, myFICO
- FICO Score Credit Insights, fall 2026 edition, FICO
- Mortgagee Letter 2026-11 (issued Oct 8, 2026), HUD
- Selling Guide B3-5.1-01, General requirements for credit scores, Fannie Mae
- Desktop Underwriter Version 12.0, November 2025 release notes, Fannie Mae
- Loan-Level Price Adjustment Matrix (09.30.2026), Fannie Mae
- Credit scores, FHFA
- Average car loan interest rates by credit score (Sep 10, 2026), Experian
Every figure on this page is computed from the published rules and averages above, checked October 11, 2026. This is education, not lending advice: lenders add their own requirements, and your offer depends on your full application.