What Is a Good Credit Score? Complete Guide to Credit Score Ranges

Credit scores in the US typically range from 300 to 850. The higher your score, the less risk you present to lenders — and the better interest rates you receive.

FICO Score ranges:

• 800–850 — Exceptional: You qualify for the best rates on virtually any loan. Less than 20% of Americans have scores in this range.
• 740–799 — Very Good: You will qualify for excellent rates. Lenders view you as very low risk.
• 670–739 — Good: Near or above the US average (~714). You qualify for most loans at reasonable rates.
• 580–669 — Fair: Some lenders will approve you, but at significantly higher rates. Often called "subprime."
• 300–579 — Poor: Difficult to qualify for most credit. May require secured cards or co-signers to rebuild.

The US average FICO score as of 2024 was approximately 717. Most mortgage lenders require a minimum of 620 (FHA) or 640–680 (conventional). The best mortgage rates typically require 760+.

There are two main credit scoring models in the US:

FICO Score:

• Created by Fair Isaac Corporation — the industry standard since 1989
• Used by 90%+ of top lenders for mortgage, auto, and credit decisions
• Range: 300–850

VantageScore:

• Created by the three credit bureaus (Equifax, Experian, TransUnion)
• Used more often in free credit monitoring apps (Credit Karma, Chase, Discover)
• Range: 300–850 (same scale as FICO)
• Your VantageScore and FICO Score may differ by 10–50 points

When applying for a mortgage or major loan, ask your lender which score model they use. The score from Credit Karma may not match.

FICO uses five factors, each weighted by importance:

• Payment History — 35% (most important): On-time vs late payments on all accounts. A single 30-day late payment can drop a good score by 60–110 points.
• Credit Utilization — 30%: Your total credit card balances divided by total credit limits. Keeping utilization below 30% is good; below 10% is ideal for the best scores.
• Length of Credit History — 15%: Average age of all accounts. Older accounts help. Avoid closing old credit cards unnecessarily.
• Credit Mix — 10%: Having a variety of account types (credit cards, installment loans, mortgage) is slightly better than having only one type.
• New Credit — 10%: Applying for new credit creates a "hard inquiry" — a small, temporary score decrease (~5–10 points) that typically recovers in 6–12 months.

The financial impact of your credit score is most visible on large loans. Here is how scores affect rates on a $350,000 30-year mortgage (approximate 2026 rates):

• 760–850: ~6.75% → $2,270/month → Total interest: ~$467,000
• 700–759: ~7.00% → $2,329/month → Total interest: ~$488,000
• 640–659: ~7.90% → $2,545/month → Total interest: ~$566,000
• 620–639: ~8.40% → $2,673/month → Total interest: ~$612,000

The difference between a 760 score and a 620 score on this mortgage: $403/month and $145,000 in total interest over 30 years.

Immediate impact (1–3 months):

1. Pay down credit card balances — reducing utilization from 50% to 10% can raise your score 50–100 points within 1–2 billing cycles
2. Dispute errors on your credit report — 1 in 5 Americans has an error. Get free reports at AnnualCreditReport.com.
3. Request a credit limit increase — if you do not increase spending, a higher limit lowers your utilization ratio automatically

Medium-term (3–12 months):

1. Set up autopay for all accounts — one missed payment undoes months of improvement
2. Keep old accounts open — closing a card reduces available credit and average account age
3. Become an authorized user on a trusted person's old, well-managed account

Negative information does not stay on your credit report forever:

• Late payments (30, 60, 90+ days): 7 years from the date of the missed payment
• Collection accounts: 7 years from the original delinquency date
• Chapter 7 bankruptcy: 10 years from filing date
• Chapter 13 bankruptcy: 7 years from filing date
• Hard inquiries: 2 years on your report, but affect your score for only about 12 months

The impact of negative items diminishes significantly over time even before they fall off.