What Is a Good Credit Score?

On the widely used FICO scale, scores run from 300 to 850, and a good credit score is generally considered to be 670 or above. Scores of 740 and up are considered very good, and 800 or higher is exceptional. A higher score tells lenders you’re more likely to repay, which usually means easier approvals and lower interest rates.

That said, “good” is partly about what you’re trying to do. Below you’ll find the official score ranges, why you have more than one score, and a worked example showing what different rates, which often follow different scores, can cost on a real loan.

The FICO score ranges

According to myFICO, base FICO scores range from 300 to 850, and the scores are grouped into these bands:

These labels are a general guide, not a promise of any particular outcome. Each lender sets its own standards, and it may look at your income, existing debts and the specific loan before making a decision.

Why you have more than one credit score

It’s common to see a slightly different number every time you check. That’s normal, for a few reasons:

• Different scoring models. FICO and VantageScore are both widely used, and each has several versions. Lenders choose which one to use.
• Different credit bureaus. Your score depends on the data in your credit report, and each of the three nationwide credit bureaus may have slightly different information about you.
• Different timing. Card issuers report balances roughly once a month, so your score can move as new information arrives.
• Industry-specific scores. Some lenders use versions tailored to auto loans or credit cards.

When comparing scores, check the model name next to the number. A shift of a few points between sources usually isn’t something to worry about. What matters is the overall range you’re in and the trend over time.

What a good score gets you

Your credit score influences:

• Approval. Whether you qualify for a loan, card or apartment in the first place.
• Your interest rate. Lenders often price loans by risk, so a higher score can mean a lower rate.
• Deposits and fees. Utility companies and landlords may ask for smaller deposits, or none, if your credit is strong.
• Credit limits. Card issuers may offer higher limits to borrowers with good scores.

In most states, insurers can also use credit-based insurance scores when setting premiums.

A worked example: what a different rate costs

To see why your score matters, look at the same loan at different interest rates. The rates below are hypothetical, chosen only to show the effect; actual rates vary by lender, loan type and market conditions.

Say you borrow $30,000 for a car over 60 months:

Going from a 13% rate to a 6% rate lowers the payment by about $103 a month and saves roughly $6,156 in interest over five years. The loan, the car and the term are identical; only the rate changed.

The stakes get bigger on a mortgage. On a $320,000, 30-year loan, the difference between a hypothetical 6.25% and 7.25% rate is about $213 a month ($1,970.30 versus $2,182.96) and roughly $76,561 in total interest over the full term.

You can run these comparisons with the loan calculator: enter the same amount and term, then try a few rates to see how much a better rate would be worth to you.

What goes into your score

FICO scores are built from five categories of information in your credit report. Payment history and amounts owed together account for most of the score, while the length of your history, new credit and your mix of accounts make up the rest. Our guide on how credit scores are calculated breaks down each factor and its weight.

According to myFICO, things that aren’t part of your FICO score include your income, job, age, race, religion, marital status and where you live. Lenders may consider income and employment separately when you apply, but they don’t feed into the score itself.

How to check your score and reports

Your score is only as accurate as the information behind it, so check both:

1. Get your credit reports. You can get free reports from each of the three nationwide bureaus at AnnualCreditReport.com. According to the FTC, the bureaus have permanently extended free weekly access through that site.
2. Look for errors. Check for accounts you don’t recognize, late payments you made on time, or balances that are wrong. You can dispute errors with the bureau and the company that reported them.
3. Find a free score. Many card issuers and lenders show a free score in your account. The CFPB explains where you can get your credit score and whether you need to pay for it.

Checking your own credit doesn’t hurt your score.

If your score isn’t where you want it

A fair or poor score isn’t permanent. Negative information fades in importance over time, and positive habits build up month after month. The biggest levers are:

• Pay every bill on time. Set up automatic minimum payments so nothing slips.
• Lower your card balances. How much of your available credit you use matters a lot. Our guide to credit utilization explains how to measure and reduce it.
• Apply for new credit sparingly. Several applications close together can weigh on your score, especially if your history is short.
• Keep older accounts open when it makes sense, since the age of your accounts counts.

For a step-by-step plan, see how to improve your credit score.

How long negative marks affect your score

If your score is lower than you’d like because of past problems, time is on your side. The CFPB notes that most negative information, such as late payments, stays on your credit report for about seven years, and a Chapter 7 bankruptcy for about ten. Recent negative information generally affects your score more than older information.

That means two things in practice:

• A missed payment hurts most right after it happens. Its effect gradually fades as it ages, especially if you keep a clean record afterward.
• Positive information keeps adding up. Each on-time payment and each month of low balances strengthens your profile, so steady habits can lift your score well before old marks fall off.

Common misunderstandings about “good” credit

• “Everyone sees the same score.” Lenders choose which model and bureau to use, so the score they see may differ from the one in your app.
• “Earning more raises my score.” Income isn’t part of your credit score, although lenders do consider it separately.
• “A good score guarantees approval.” Lenders also look at your income, debts and the loan itself.

How high is high enough?

You don’t need an 850. Beyond a certain point, extra points rarely change the rate a lender offers, because lenders often group applicants into pricing tiers. Once you’re comfortably in the very good or exceptional range, focus on keeping your habits steady rather than chasing a perfect number.

If you’re planning a big purchase like a home, it’s worth checking your credit several months ahead. That gives you time to correct errors and pay down balances before lenders pull your reports. Our guide on how much house you can afford covers the other numbers lenders look at.

The bottom line

On the FICO scale, 670 and above is generally considered good, 740 and above very good, and 800 and above exceptional. A better score can mean lower rates, and as the example shows, even a few percentage points can add up to thousands of dollars on a car loan and tens of thousands on a mortgage. Check your reports for errors, pay on time, keep balances low, and your score will tend to follow.

This content is for educational purposes only and isn't financial advice. Calculator results are estimates based on the numbers you enter. For decisions about your situation, consider talking with a qualified professional. Read our full disclaimer.