What is a Good Credit Score?
Key takeaways
- A good credit score ranges from 670 to 739 on the FICO scale and 661 to 780 on the VantageScore model.
- Maintaining good credit can save you money through lower interest rates and better financial terms.
- Your payment history, credit utilization and credit mix are important factors in determining your score.
If you’re applying for a loan or a new apartment, the landlord or loan officer will most likely want to know your credit score. It’s like your financial history boiled down into three numbers.
So, what’s a “good” credit score? That depends on which scoring model you use. Stick around to find out the “good” range for different credit scoring models and how to get there.
What is a good credit score?
Your credit score is a three-digit number that helps lenders assess your creditworthiness — essentially, how likely you are to repay your debts. Scores typically range from 300 to 850.
Lenders rely on two major scoring models: FICO and VantageScore. Both models use similar ranges but slightly different criteria to evaluate your credit habits.
A good credit score signals that you’re a low-risk borrower, opening the door to better loan terms, lower interest rates and more financial opportunities.
What is a good FICO Score?
A FICO Score is a credit score created by the Fair Isaac Corporation, and it’s the most widely used scoring model by lenders. Roughly 90% of lenders use FICO Scores to assess borrower’s credit risk.
FICO Scores range from 300 to 850, with a “good” score landing between 670 and 739. This range suggests you’re financially reliable and you have a track record of responsibly managing debt. Borrowers in this category typically qualify for competitive interest rates and favorable loan terms.
Your FICO score is based on five factors: payment history, amounts owed, length of credit history, credit mix and new credit inquiries. Each factor carries a different weight, but payment history and credit utilization have the biggest impact.
| Credit score | Rating |
|---|---|
| 300-579 | Poor |
| 580-669 | Fair |
| 670-739 | Good |
| 740-799 | Very good |
| 800-850 | Exceptional |
What is a good VantageScore?
A VantageScore is another credit scoring model lenders use to evaluate your creditworthiness. Created collaboratively by the three major credit bureaus — Experian, Equifax and TransUnion — it offers an alternative to the FICO Score.
VantageScore uses a similar range of 300 to 850, with a “good” score falling between 661 and 780. This range slightly overlaps with FICO’s definition of good but offers a roader middle ground for borrowers.
Although not as widely used as FICO, VantageScore is gaining popularity — especially among credit card issuers.
VantageScore weighs factors like payment history, credit age and credit utilization, but it tends to emphasize trends and recent credit behavior more. This approach can benefit people who don’t have a long credit history and those who’ve made some credit mistakes in the past but are working to improve their financial habits.
| Credit score | Rating |
|---|---|
| 300-600 | Subprime |
| 601-660 | Near prime |
| 661-780 | Prime |
| 781-850 | Excellent |
Why a good credit score is important
A good credit score is more than just a number — it’s your ticket to better financial opportunities. When lenders run your credit, a good credit score signals reliability, making the lender more likely to approve you for loans, leases, credit cards and other financial products.
The real value of a good credit score lies in the savings that come with it. With a good score, you qualify for lower interest rates on mortgages, auto loans and personal loans, which can save you thousands over the life of the loan.
For example, say you qualify for a 7.98% rate on a 30-year, $303,426 mortgage with a fair credit score. At that rate, your monthly payment would be $2,222, and you’d pay $799,993 in principal and interest over the life of the loan.
If you could qualify for a 7.76% rate for the same loan with a very good credit score, your monthly payment would drop to $2,176 per month, and you would pay $783,316 in total. That’s a savings of $16,677 over the 30-year loan term.
How to check your credit score
Checking your credit score is easy and free with tools like LendingTree Spring. This platform provides access to free credit score monitoring, personalized tips to save money and customized loan and credit card offers.
What impacts your credit score?
Here’s a breakdown of the factors that influence your credit score.
Payment history (35%)
Your payment history has the biggest impact on your credit score. Timely payments on credit cards, loans and other debts show lenders you’re reliable. Late payments, defaults or bankruptcies can drastically lower your score.
Credit utilization (30%)
Credit utilization is the ratio of your outstanding credit balance to your available revolving credit limit. High utilization signals to lenders that you may be overextending yourself, which can lower your score.
Length of credit history (15%)
The longer your credit history, the better. Lenders prefer to work with borrowers with a track record of responsible borrowing. If you’re new to credit, your score might take some time to grow.
New credit (10%)
Opening multiple new accounts within a short period can hurt your score, as it suggests you’re taking on more debt than you can handle. Each hard inquiry slightly lowers your score, although the effect is usually short-lived.
Credit mix (10%)
Having a variety of credit types, including credit cards, mortgages and installment loans, boosts your score. It shows lenders you can manage different types of credit responsibly.
How to get a good credit score
Building a good credit score takes consistent effort and smart financial habits. Here are the steps to help you get there.
Pay your bills on time
Payment history is the most important factor in your credit score. Set reminders or automate payments to ensure you never miss a due date. Even one missed payment can cause a drop in your score.
Keep your credit utilization under 30%
Aim to use no more than 30% of your available revolving credit (i.e., credit cards and lines of credit) — both on a per-account basis and in total. For example, if you have two credit cards, Card A with a credit limit of $5,000 and Card B with a credit limit of $3,000, charge no more than $1,500 on Card A and no more than $900 on Card B.
This recommendation applies even if you pay off your balances in full each month.
Use a mix of credit types
Lenders like to see that you can handle both revolving credit (like credit cards) and installment loans (like mortgages and auto loans). While this factor carries less weight than the others, a diverse credit mix can boost your score.
Check your credit report for errors
Review your credit report regularly for inaccuracies like accounts you don’t recognize or incorrect balances. Dispute any errors to prevent them from dragging down your score.
Limit new credit applications
Avoid applying for multiple credit accounts in a short time frame. Each application triggers a hard inquiry, which temporarily lowers your score.
The credit scoring models make an exception when it’s apparent that you’re shopping around to get the best offer. For example, if you apply for several car loans within 14 days, they count as one hard inquiry in your credit score.
Frequently asked questions
The highest credit score possible is 850 on both the FICO Score and VantageScore models. Achieving a perfect 850 is rare, but having a score above 800 is considered exceptional and gives you access to the best interest rates.
The average credit score in the United States is 717, according to recent FICO data. This falls within the good range.
While age isn’t a factor in calculating your credit score, credit scores do tend to increase with age. Compared to young adults, older adults tend to have a longer credit history, have more experience managing their finances, and have a higher income.
For young adults (18-26), a score in the upper 600s is common. For people in their 40s and 50s, the average FICO Score is around the low to middle 700s.