“What is a good credit score?” is one of the most common money questions – and the answer decides the interest rate you pay on nearly everything you borrow. The good news: the ranges are simple once you see them laid out, and knowing where you stand tells you exactly what to work on.
What is a good credit score? The ranges
Most lenders use the FICO score, which runs from 300 to 850. Here is how the tiers break down:
| Range | Rating | What it means |
|---|---|---|
| 800-850 | Exceptional | The best rates available; you are a lender’s dream |
| 740-799 | Very Good | Better-than-average rates and easy approvals |
| 670-739 | Good | Approved by most lenders at competitive rates |
| 580-669 | Fair | Approved by many, but at higher rates |
| 300-579 | Poor | Hard to get approved; expect deposits and high rates |
The key line is 670 – at or above it, you are in “good” territory and unlock most mainstream credit at fair rates. Push past 740 and you qualify for the best offers.
Why it matters more than people think
The gap between a 620 and a 760 score can mean tens of thousands of dollars over a lifetime. On a 30-year mortgage, even a half-point higher rate from a weaker score adds up to a huge sum. The same applies to car loans, credit cards, and even some insurance premiums and apartment applications.
What actually determines your score
- Payment history (35%): paying on time is the single biggest factor.
- Credit utilization (30%): how much of your available credit you use – keep it under 30%, ideally under 10%.
- Length of credit history (15%): older accounts help, so keep your oldest card open.
- Credit mix (10%): a blend of cards and installment loans.
- New credit (10%): too many hard inquiries in a short span can ding you.
Frequently asked questions
What score do I need to buy a house? Conventional loans usually want 620+, but 740+ gets you the best mortgage rates. FHA loans can go lower.
How often does my score change? It updates as lenders report to the bureaus, typically monthly.
Does checking my own score hurt it? No. Checking your own credit is a “soft” inquiry and never affects your score.
To move up a tier, see our step-by-step guide on how to improve your credit score fast, or if you are starting from nothing, how to build credit from scratch. The Consumer Financial Protection Bureau offers free, unbiased credit guidance.