Attorney at Debt Advisors Law Offices
Practice Areas: Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Stop Foreclosure
A 720 credit score can make a real difference when you apply for a loan or credit card. It may put you in line for better rates, higher limits, or more favorable terms.
Getting there takes more than one good month. Your payment history, card balances, account age, and recent credit activity all play a part. If you are working on improving your credit score, it helps to know which areas deserve your attention first.
Below, we explain what a 720 score means, why it can matter, and the steps that may help you reach it.
Credit scores give lenders a quick way to assess how you have handled credit in the past. A score of 720 is generally viewed favorably and can make it easier to qualify for competitive loan and credit card offers.
Your score can affect more than borrowing. Credit information may also be considered in certain rental applications, insurance decisions, and employment background checks. Keeping your credit in good shape may therefore help you save money in the long term.
According to the Federal Reserve’s 2024 report, borrowers with credit scores above 720 received average mortgage rates nearly one percentage point lower than borrowers with scores below 660.
Your credit score is based on information in your credit report. Under the FICO model, five areas play a major role:
|
Credit Factor |
Weight in Score Calculation |
Positive Action |
Negative Action to Avoid |
| Payment History | 35% | Pay all bills on time | Late or missed payments |
| Credit Utilization | 30% | Keep balances below 30% | Maxing out credit lines |
| Length of Credit History | 15% | Keep older accounts active | Closing long-standing accounts |
| Credit Mix | 10% | Maintain a mix of loans and cards | Relying on only one type of credit |
| New Credit Inquiries | 10% | Apply for credit sparingly | Multiple hard inquiries quickly |
Payment history has the greatest influence. Late or missed payments can hurt your score, while a record of paying on time can help.
Credit utilization also matters. This is the amount of revolving credit you are using compared with the credit available to you.
A few basic habits can help improve your credit over time:
Start with the biggest issue on your credit report first, then work through the others.
Some common credit advice can have the opposite effect of what you expect. Closing an old credit card, for example, does not automatically improve your score. It can reduce your available credit and may also affect the age of your credit history.
Checking your own credit does not lower your score either. It is treated as a soft inquiry. Hard inquiries generally occur when a lender checks your credit after you apply for financing.
Be wary of credit repair companies that promise instant results or guaranteed score increases. Accurate negative information cannot simply be removed because you pay someone to dispute it.
Credit education programs can help you understand budgeting, credit use, and debt management. They may also explain how to work with creditors and deal with errors on your credit reports.
Before paying for professional help, review the fees, terms, and claims carefully. Avoid companies that promise a specific score increase or demand large upfront payments.
Debt Advisors Law Offices helps Wisconsin residents understand their options when debt becomes difficult to manage, including ways to rebuild credit responsibly.
Once your credit improves, protecting it comes down to many of the same habits that helped you get there. Keep paying bills on time, avoid letting credit card balances climb too high, and review your credit reports for errors or unfamiliar activity.
An emergency fund can also help cover an unexpected expense without forcing you to miss a payment or rely heavily on credit. The goal is not to chase a number every month. It is to keep your debt and monthly payments at a level you can comfortably manage.
There is no set timeline. It depends on where your score is now, what is affecting it, and how your credit report changes over time.
No. Checking your own score is a soft inquiry, so it does not affect your credit.
Yes. Rebuilding takes time, but paying bills on time and using new credit carefully can help. You can also read more about post-bankruptcy recovery.
Lower is generally better. If your cards carry high balances, paying them down can reduce the amount of available credit you are using.
Not always. Closing a card can reduce your available credit and raise your utilization. Check the card’s age, limit, and fees before deciding.
Credit-building strategies can only do so much if debt payments are already difficult to manage.
If you are struggling with credit cards, loans, missed payments, or other debt, it may help to look at the underlying financial problem first. Debt Advisors Law Offices can explain the legal options available to Wisconsin residents and how those choices may affect future credit.
An experienced Milwaukee bankruptcy lawyer can review your situation and answer questions about debt relief, bankruptcy, and what may come next. Contact Debt Advisors Law Offices for a free consultation to discuss your options.
Debt Advisors Law Offices is a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.
Learn about bankruptcy protections, types of bankruptcy, how to get started, what to expect, and who to trust. Filing bankruptcy is the ONLY way to completely eliminate debt. If bankruptcy is right for you, it offers powerful protections that cannot be achieved through alternative solutions such as hardship relief, loans, or debt settlement.
