Excellent Credit: Make Lenders Compete for You

What excellent credit gets you

At 740 and above, you are the borrower lenders advertise for. Approval odds are high almost everywhere, provided your income supports the payment, and you get the widest choice of amounts and terms. But "excellent" covers a lot of ground: commercial banks averaged 11.90% on two-year personal loans in August 2026, near the top of this range, so an average offer is not necessarily a good one for you.

A high score doesn't override the rest of the application. Lenders still verify income and add up your monthly debt payments, and a large request against a modest income can be cut down or priced higher. Recent changes count too: a new car loan or a jump in card balances since your last statement can move an offer even when the score itself barely changes. If you're self-employed, have your tax returns or bank statements ready, because that is usually where the delay comes from at this range.

Worked example: $20,000 over five years

At the midpoint of the range, $20,000 at 10% APR for 60 months means $424.94 a month, about $25,496 in total and roughly $5,496 in interest.

Two borrowers with the same excellent score can be more than $3,500 apart on this loan, and the score isn't what separates them. Shopping, the term and a few discounts are. Try your own amount and term in the loan payment calculator, or see the full month-by-month split in the amortization schedule.

Rate shopping without hurting your score

FICO groups multiple inquiries made while shopping for a mortgage, auto loan or student loan, and says one additional inquiry takes less than five points off most people's scores. It doesn't say personal loan inquiries are grouped the same way, so do your comparing with soft inquiries:

1. 1 Prequalify with three to five lenders that show a rate with a soft check, including a credit union and your own bank. Our guide to prequalification explains what the estimate does and doesn't promise.
2. 2 Ask for the same amount and term everywhere, so the offers are comparable.
3. 3 Compare APR, payment and total of payments side by side, as in comparing loan offers.
4. 4 Formally apply only for the offer you plan to accept. That's the one hard inquiry.

Funditia explains the difference between hard and soft inquiries if you want the details.

Discounts and negotiating

With excellent credit you have leverage, and lenders publish some of the levers. LightStream says its rates without autopay are 0.50 percentage point higher; SoFi offers a 0.25% reduction for autopay from a SoFi account. Banks often have similar relationship discounts for customers who pay from a checking account there.

Cheaper money you may already qualify for

A personal loan isn't always the lowest-cost tool for someone with excellent credit. Before you borrow, check whether the purpose fits something cheaper:

• A car: banks averaged 7.17% on 72-month new car loans in August 2026, and the car secures the loan. See auto loans.
• Card balances you can clear within a promotional period: a 0% balance transfer card can beat any loan if you pay it off in time. Funditia covers balance transfer cards and their fees.
• Large home projects: a home equity loan often carries a lower rate, with closing costs and your house as collateral.

Staying in the excellent range

A new loan can nudge your score for a while, through the hard inquiry and a new account on your report. On-time payments usually more than make up for it. The things that keep you here are the habits that got you here: payments on time, card balances low compared with limits, and applications only when you need credit. If you're applying for a mortgage soon, consider waiting on the personal loan, since a new monthly payment also changes your debt-to-income ratio.

Common questions