What Is a Fair Credit Score?
Key takeaways
- The numbers that fall in the fair credit score range vary depending on if your lender is using a FICO or VantageScore scoring model.
- A fair credit score isn’t the worst possible score, but it does make it harder to secure lending products – especially if you want favorable rates.
- There are ways to improve your credit score, like building a history of on-time payments or lowering your credit utilization by paying off debt.
A fair credit score falls in the 580 to 669 range for FICO, and the 601 to 660 range for VantageScore. A fair credit score indicates a troubled history in terms of your credit report, which probably means you’ve missed some payment deadlines in the past. While a fair credit score hurts your borrowing opportunities, not all is lost. There are ways to improve your score so you have better opportunities in the future.
What is a fair credit score?
The definition of a fair credit score varies depending on which model you’re using: FICO or VantageScore. Most lenders use FICO scoring models, though there are some out there using VantageScore. Fair credit tends to be considered ‘subprime,’ and you usually end up here because of a history of inconsistent or late payments or borrowing more than you can afford to repay. It’s not a stepping stone on the way to good credit, as there is no such thing as a starting credit score. Instead, it’s the result of having negative line items on your credit report. The only level below ‘fair’ is ‘poor.’
FICO credit score tiers
| Credit band | Credit type | Description |
|---|---|---|
| 300 to 579 | Poor | You may have trouble securing credit at this tier, and when you can, expect to pay deposits, fees and unfavorable rates. |
| 580 to 669 | Fair | You have better odds for approval with a fair credit score versus a poor credit score, though you should still expect unfavorable or expensive terms in instances where you’re approved. |
| 670 to 739 | Good | You are likely to qualify for many credit products with average rates and fees. |
| 740 to 799 | Very good | You are likely to qualify for most lending products, and you can expect to get better-than-average offers – in some cases, you may qualify for the best rates. |
| 800 to 850 | Excellent | You’re an ideal applicant, so you can expect to qualify for credit when you apply, and expect to be offered some of the best rates and terms on the market. |
VantageScore credit score tiers
| Credit band | Credit type | Description |
|---|---|---|
| 300 to 499 | Very poor | Highly likely to be denied credit upon application. |
| 500 to 600 | Poor | Slightly better than a very poor credit score, but those with a poor score are still likely to be denied credit altogether, and receive unfavorable offers when credit is extended. |
| 601 to 660 | Fair | May be offered credit upon application, but you’re likely to be offered unfavorable terms and rates. |
| 661 to 780 | Good | Highly likely to qualify for lending products upon application, and the terms and rates you’re offered should be average to favorable. |
| 781 to 850 | Excellent | You’re viewed as a reliable borrower – you can expect to get approved for the best rates and offers around. |
How a fair credit score is determined
Your credit score is made up of several factors. If you have a fair credit score it’s likely something went awry in at least one of the following categories. FICO uses the components below to calculate your credit score, listed from most to least important:
- Payment history (35%): On time payments help your credit score, and late payments hurt your credit score.
- Credit utilization (30%): This is measured by the amount you owe versus the amount of credit available to you.
- Length of credit history (15%): Having a longer credit history, or older accounts open for a long period of time, helps your credit score.
- Credit mix (10%): Having multiple types of credit, like revolving and installment credit, can help your credit score.
- New credit (10%): Opening several new accounts in quick succession can potentially hurt your score – especially if you have a short credit history.
Here are the factors VantageScore uses to calculate your credit score, listed from most to least important:
- Payment history (40% or 41%*): On-time payments help your score, and late payments hurt your score. The later the payments, the bigger the negative impact.
- Depth of credit (20% or 21%*): The length of your credit history and your credit mix.
- Credit utilization (20%): This takes into account how much of your credit you’re using, placing more emphasis on your revolving credit accounts.
- Balances (11% or 6%*): If you have high balances on credit accounts, it can potentially have a negative effect on your score, even if you make on time payments.
- Recent credit (5% or 11%*): This means how many new accounts you recently applied for or opened. A recent hard inquiry will typically lower your score by a few points.
- Available credit (3% or 2%*): Higher available credit may increase your score slightly.
*Percentages depend on the VantageScore model being used. See more details here.
Why a fair credit score matters
Having a fair credit score matters. It means that you’re less likely to get approved for the best credit offers, and that when you are approved, you’re likely to face unfavorable rates on everything from personal loans to credit cards. Beyond interest rates on lending products, you may even be required to pay deposits or upfront fees for things like utilities or a home rental.
Even though you might not qualify for the best rates, that doesn’t mean you shouldn’t work on improving your credit. About 30% of Americans are classified as non-prime borrowers, and these non-prime borrowers have an average FICO score of 595. However, the average credit score of all Americans is 717 according to FICO data released in October 2024. That means that while your score may be negatively impacting you today, there is room to move up so you can secure better rates and terms.
How to improve to a good credit score
It is possible to move from a fair credit score to a good credit score, even if it initially feels overwhelming.
Then, take these concrete steps to improve a fair credit score:
- Pay bills on time: Even if you can’t pay down all your debt right away, be sure to pay at least the minimum payment due on all of your bills on time every month. Late payments, when reported to the major credit bureaus, are the number one thing that can lower your score across credit scoring models, so avoiding late payments can have a big impact.
- Pay down your debt: Clear up some room in your budget so you can start paying down your debt at a faster clip. This will lower your credit utilization ratio, which could boost your credit score.
- Request a credit limit increase: As your credit score nudges upwards, you can reach out to your creditors to request a credit limit increase. This is another way to improve your credit utilization, as the amount you owe will be a smaller percentage of the credit available to you.
- Fix errors on your credit report: It’s free to get a copy of your credit report weekly with no strings attached at annualcreditreport.com. If you find something inaccurate that’s hurting your score, you can dispute credit report errors with each reporting bureau.