What Is a Good Credit Score? Ranges, Factors, and How to Improve Yours
FICO and VantageScore ranges explained, the five factors that determine your score, and actionable steps to raise it.
Estimate your credit score range
Answer a few questions in our Credit Score Calculator to see where you likely fall on the FICO scale and get personalized improvement tips.
Check Your Score RangeWhat Counts as a Good Credit Score
A good credit score is generally 670 or higher on the FICO scale (300-850), which is the scoring model used in over 90% of U.S. lending decisions. Scores of 740 and above are considered "very good," and 800-plus is "exceptional." These thresholds determine the interest rates, credit limits, and loan terms available to you.
According to FICO's 2025 data, the average American FICO Score is 718, which falls in the "good" range. However, the distribution is uneven: approximately 21% of Americans have scores below 600 ("poor" or "fair"), while about 23% have scores of 800 or higher ("exceptional"). Your credit score can vary by 20 to 40 points between the three major credit bureaus (Equifax, Experian, and TransUnion) because they may have slightly different information in their files.
The Consumer Financial Protection Bureau (CFPB) notes that credit scores are not a single, fixed number. You have multiple scores generated by different models (FICO 8, FICO 9, FICO 10, VantageScore 3.0, VantageScore 4.0), and each may produce a slightly different result from the same credit report data.
Credit Score Ranges: FICO vs. VantageScore
Both major scoring models use a 300-850 scale, but they define the ranges differently. Here is how each model categorizes scores.
| Score Range | FICO Rating | VantageScore Rating |
|---|---|---|
| 800 - 850 | Exceptional | Excellent |
| 740 - 799 | Very Good | Good |
| 670 - 739 | Good | Good |
| 580 - 669 | Fair | Fair |
| 500 - 579 | Poor | Poor |
| 300 - 499 | Poor | Very Poor |
FICO Score 8 is currently the most widely used version by lenders, though FICO 10 and FICO 10T (which uses trended data) are being adopted by some lenders. VantageScore 4.0 is the latest version from that model. When checking your score through a free service or bank app, note which model and version is being displayed -- your "670" on VantageScore might correspond to a "650" on FICO for the same credit profile.
The Five Factors That Determine Your FICO Score
FICO publicly discloses the five categories of information that make up your score, along with their approximate weights. Understanding these factors is the key to improving your score strategically.
| Factor | Weight | What It Measures |
|---|---|---|
| Payment history | 35% | Whether you pay bills on time |
| Amounts owed (utilization) | 30% | How much of your available credit you use |
| Length of credit history | 15% | Age of your oldest and newest accounts, average age |
| Credit mix | 10% | Variety of account types (cards, loans, mortgage) |
| New credit | 10% | Recent inquiries and newly opened accounts |
Since payment history and amounts owed together account for 65% of your score, these are the two areas where improvement efforts yield the greatest results. A single 30-day late payment can drop a 780 score by 90 to 110 points, according to FICO data. Meanwhile, reducing credit utilization from 80% to 30% can boost a score by 50 to 100 points within one to two billing cycles.
How Your Credit Score Affects Borrowing Costs
Your credit score directly determines the interest rates lenders offer you. The impact on total borrowing costs over a lifetime is substantial. Here is an example of how FICO score ranges affect mortgage rates.
| FICO Score | Estimated APR | Monthly Payment ($300K) | Total Interest (30 yr) |
|---|---|---|---|
| 760-850 | 6.18% | $1,832 | $359,583 |
| 700-759 | 6.40% | $1,875 | $374,878 |
| 680-699 | 6.58% | $1,910 | $387,471 |
| 660-679 | 6.79% | $1,951 | $402,213 |
| 640-659 | 7.22% | $2,037 | $433,136 |
| 620-639 | 7.77% | $2,147 | $472,901 |
The difference between the best and worst tiers is $113,318 in total interest on the same $300,000 loan. That is money paid purely because of a lower credit score. This is why investing time in credit improvement before applying for a major loan can be enormously valuable. Use our mortgage calculator or APR calculator to model different rate scenarios.
Proven Strategies to Improve Your Credit Score
Improving your credit score is achievable with consistent, disciplined habits. These strategies are ranked by their typical impact, from largest to smallest.
- Pay every bill on time, every time: Payment history is 35% of your score. Set up autopay for at least the minimum payment on every account. Even one 30-day late payment can cause a 90-point drop. If you are currently behind, getting current and staying current for 6 to 12 months shows meaningful improvement.
- Reduce credit utilization below 30%: Utilization (the percentage of available credit you are using) is 30% of your score. If you have a $10,000 credit limit and a $7,000 balance, your utilization is 70% -- far too high. Pay down balances aggressively, or request a credit limit increase (without spending more) to lower the ratio. FICO data shows that people with scores above 800 typically keep utilization below 7%.
- Dispute errors on your credit report: According to a Federal Trade Commission study, 25% of consumers found errors on their credit reports that could affect their scores. Request your free annual reports from AnnualCreditReport.com and dispute any inaccuracies directly with the bureau.
- Keep old accounts open: Length of credit history is 15% of your score. Closing your oldest credit card shortens your average account age and reduces your total available credit (increasing utilization). Even if you rarely use an old card, keeping it open helps your score.
- Limit hard inquiries: Each hard inquiry (from applying for credit) can lower your score by up to 5 points. When rate-shopping for a mortgage or auto loan, submit all applications within a 14 to 45-day window -- FICO treats these as a single inquiry.
- Diversify your credit mix: Having a combination of revolving credit (credit cards) and installment loans (mortgage, auto, personal loan) demonstrates you can manage different types of credit. Do not take on debt solely for this purpose, but if you only have credit cards, a small credit-builder loan from a credit union can help. Use our personal loan calculator to explore options.
What Does Not Affect Your Credit Score
Several common assumptions about credit scores are incorrect. Understanding what is excluded helps you focus your improvement efforts on what actually matters.
- Your income, salary, or employment status (these do not appear in credit reports)
- Your age, race, religion, national origin, or marital status (prohibited by the Equal Credit Opportunity Act)
- Your bank account balances or investment portfolio
- Rent payments (unless your landlord reports to a bureau through a service like RentTrack)
- Utility payments (unless they go to collections)
- Soft credit inquiries (checking your own score, employer background checks, pre-approval offers)
- Your interest rates on existing loans
How to Monitor Your Credit for Free
Monitoring your credit regularly is the best way to track improvement progress and catch errors or fraud early. Several legitimate free options exist.
AnnualCreditReport.com is the only federally authorized source for free credit reports from all three bureaus. Since 2020, you can request free weekly reports (previously limited to annual). These reports show your full credit history but do not include your score.
Bank and credit card apps increasingly provide free FICO or VantageScore access. Chase, Discover, Capital One, Bank of America, and many others include credit scores in their mobile apps at no cost to cardholders. Some, like Discover, even provide scores to non-customers.
Free credit monitoring services like Credit Karma (VantageScore from TransUnion and Equifax) and Experian's free tier (FICO Score 8 from Experian) provide ongoing monitoring with alerts for changes. While these services are ad-supported and may recommend financial products, the score access and monitoring features are genuinely free and useful. Our credit score calculator can also give you a quick estimate based on your financial habits.
Frequently Asked Questions About Credit Scores
What credit score do you need to buy a house?
The minimum credit score to buy a house depends on the loan type. Conventional mortgages typically require a minimum FICO score of 620, though most lenders prefer 680 or higher for competitive rates. FHA loans allow scores as low as 580 with a 3.5% down payment, or 500 with a 10% down payment. VA loans have no official minimum, but most VA lenders require 620. USDA loans typically require 640. According to the Federal Reserve Bank of New York, the median credit score for new mortgage originations in 2025 was 770, indicating that most successful homebuyers have scores well above the minimums. A higher score not only improves approval odds but also secures lower interest rates -- the difference between a 620 and 760 score on a $300,000 mortgage can mean over $100,000 in additional interest over 30 years.
How long does it take to improve your credit score?
The time to improve your credit score depends on what is dragging it down and the actions you take. Reducing credit utilization can boost your score within 30 to 45 days, since card issuers report balances monthly. Becoming an authorized user on a well-managed account can improve your score within one to two billing cycles. Correcting errors on your credit report takes 30 to 45 days once you file a dispute with the bureau. However, recovering from negative items takes longer: a late payment remains on your report for 7 years, a bankruptcy for 7 to 10 years, and a collection account for 7 years from the original delinquency date. According to FICO, most people who experience a significant score drop can recover to their previous level within 12 to 18 months of consistent positive behavior. The fastest improvement strategy is paying down high-balance credit cards to below 30% utilization.
Does checking your own credit score lower it?
No, checking your own credit score does not lower it. When you check your own score, it is recorded as a "soft inquiry" (also called a soft pull), which has no impact on your credit score. Soft inquiries include checking your score through your bank's app, using a free credit monitoring service, or requesting your annual credit report from AnnualCreditReport.com. Only "hard inquiries" -- triggered when a lender checks your credit as part of a lending decision -- can affect your score. According to FICO, a single hard inquiry typically lowers your score by fewer than 5 points and falls off your report after 2 years (though it only affects your score for about 12 months). The CFPB encourages consumers to check their credit regularly to catch errors and monitor for identity theft.
What is the difference between FICO Score and VantageScore?
FICO Score and VantageScore are two competing credit scoring models that analyze the same credit report data but use different algorithms. FICO, created by Fair Isaac Corporation in 1989, is used in over 90% of U.S. lending decisions according to FICO's own data. VantageScore, developed jointly by Equifax, Experian, and TransUnion in 2006, is increasingly used for credit card pre-approvals and tenant screening. Both use a 300-850 range, but they weight factors differently. FICO requires at least 6 months of credit history and one account reported in the past 6 months, while VantageScore can generate a score with just one month of history. Your FICO and VantageScore for the same credit report can differ by 20 to 40 points. When applying for a mortgage, your FICO score is almost always the one used.
How many credit cards should you have for a good score?
There is no single ideal number of credit cards, but data shows that people with FICO scores above 800 have an average of 3 to 5 open credit card accounts. Having multiple cards can help your score by increasing your total available credit (lowering utilization) and diversifying your credit mix. However, opening too many cards in a short period generates multiple hard inquiries and lowers your average account age, both of which can temporarily reduce your score. The CFPB advises consumers to only open accounts they can manage responsibly. A practical approach is to have 2 to 3 cards that you use regularly and pay in full each month. The most important factor is not the number of cards but how you use them -- keeping utilization below 30% on each card and never missing a payment matters far more than the total count.
Can you get a perfect 850 credit score?
Yes, a perfect 850 credit score is achievable, though rare. According to FICO data from 2025, approximately 1.7% of Americans have an 850 FICO Score. People who reach 850 typically share these characteristics: zero missed payments across all accounts for at least 10 years, credit utilization consistently below 7%, an average account age of 25 or more years, a mix of account types (mortgage, auto loan, credit cards), and no hard inquiries in the recent past. However, pursuing a perfect 850 offers no practical benefit over a score of 780 or higher. Lenders typically offer their best rates and terms to anyone in the 760-plus range. The difference between 780 and 850 in terms of loan approvals and interest rates is effectively zero.
Understand Your Financial Health
Use our free finance calculators to see how your credit impacts borrowing costs: