I have been in the finance business for 25 years and the credit score system is far from accurate. One thing to rememeber is that is a snap shot in time and several factors can effect the score; credit card balance is a big one, if you exceed 50% of the avaiable balance it hits the score hard. Just because people pay on time does not mean a strong acore, avaiable balance factors into it.
The guy with limited credit will most likley have a lower score than the guy with debt but be a much better risk due to low debt to income ratio. Most lenders are looking beyond scores these days and that is a good thing, but 99% of the underwriting engines are score driven and the borrwer needs to first get by the system before a human gets to look at it.
742 is a great score tbear, most small banks and CU's want co-signers these days for added security, that does not mean the buyer is not good, but rather the thinking is why not attach another person to collect on in the event the loan goes bad.
Exactimundo.. I, too, was in the finance biz for about 14 years and examined and judged credit reports on a daily basis.. Good interest rates were awarded to those with solid job history, D/I ratio less than 40% (AFTER any new loan) and any mortgage payment not exceeding 25% of gross.. A minor late-30 wasn't going to make much difference if on a credit card or similar.. But any late payments on a mortgage or, (especially) student loan, would be a near guarantee that much more bux would be needed down and/or interest rate given would not be prime.. This was during the mid 80s - late 90s..
