A good credit score is 670 or higher on the standard 300–850 FICO scale. A score of 740 or above is “Very Good” and qualifies you for most lenders’ best rates. The national average credit score in 2026 is approximately 718 — meaning the typical American already has a “Good” credit rating.
FICO Credit Score Ranges (2026)
FICO scores — used in over 90% of lending decisions in the US — divide into five tiers:
| Score Range | Rating | What It Means |
|---|---|---|
| 800–850 | Exceptional | Best rates; rare — only ~23% of Americans |
| 740–799 | Very Good | Excellent rates; qualifies for most premium products |
| 670–739 | Good | Average rates; approved for most credit |
| 580–669 | Fair | Higher rates; some products unavailable |
| 300–579 | Poor | Very high rates; most applications denied |
VantageScore — the other major model — uses slightly different labels but the same 300–850 scale:
| VantageScore | Rating |
|---|---|
| 781–850 | Excellent |
| 661–780 | Good |
| 601–660 | Fair |
| 500–600 | Poor |
| 300–499 | Very Poor |
FICO is the score most mortgage and auto lenders use. VantageScore is commonly shown on free monitoring apps (Credit Karma).
What a Good Credit Score Gets You
| Credit Score | Approx. 30-Year Mortgage Rate | Monthly Payment ($300K) | Total Interest |
|---|---|---|---|
| 760–850 | ~6.5% | $1,896 | $382,560 |
| 700–759 | ~6.75% | $1,946 | $400,560 |
| 680–699 | ~7.0% | $1,996 | $418,560 |
| 660–679 | ~7.3% | $2,059 | $441,240 |
| 640–659 | ~7.75% | $2,148 | $473,280 |
| 620–639 | ~8.25% | $2,253 | $511,080 |
Rates are illustrative; actual rates vary by lender and market conditions.
The difference between a 620 and 760 score on a $300,000 mortgage is $128,520 in total interest over 30 years — or $357/month.
Five Factors That Make Up Your Credit Score
FICO calculates your score using these five factors:
| Factor | Weight | What It Measures |
|---|---|---|
| Payment history | 35% | Do you pay on time? |
| Credit utilization | 30% | How much of your available credit you use |
| Length of credit history | 15% | How long accounts have been open |
| Credit mix | 10% | Cards, loans, mortgages — variety helps |
| New credit | 10% | Recent applications and new accounts |
Payment history and utilization together make up 65% of your score. These are the two levers to focus on first.
What Each Score Range Means in Practice
Exceptional (800–850)
You’ll get the lowest available rates on everything — mortgages, auto loans, credit cards. You’re pre-approved offers arrive in the mail. Credit limit increases are automatic. Only about 23% of Americans are here.
Very Good (740–799)
You’ll qualify for nearly every financial product at competitive rates. Mortgage rates at this tier are typically only 0.1–0.2% above what exceptional scores get. This is the practical “sweet spot” — the benefits of exceptional credit without the additional effort.
Good (670–739)
You’re approved for most products. Rates are higher than the top tiers but still reasonable. At 700, you can get a mortgage and most credit cards. Improving to 740+ will unlock meaningfully better terms.
Fair (580–669)
You’ll face higher rates and some rejections. FHA loans are available from 580 with 3.5% down. You may still qualify for auto loans, but at subprime rates (10–15% APR vs. 5–7% for good credit). Focus on on-time payments and lowering utilization.
Poor (300–579)
Most conventional credit products are unavailable. This range often results from bankruptcies, collections, or extended late payment history. Rebuilding typically takes 12–24 months of consistent positive behavior.
How to Improve Your Credit Score
The five fastest ways to move your score up:
- Pay down credit card balances — getting utilization below 10% can add 20–60 points within 30–60 days
- Never miss a payment — a single 30-day late payment drops scores by 60–110 points
- Dispute errors on your credit report — 1 in 5 reports contains errors; correcting one can add 20–50+ points
- Request a credit limit increase — more available credit lowers your utilization ratio
- Keep old accounts open — closing accounts raises utilization and shortens credit history
For a full action plan, see How to Build Credit from Scratch.
How to Check Your Credit Score for Free
| Service | Score Type | Cost | Notes |
|---|---|---|---|
| Credit Karma | VantageScore 3.0 (TransUnion & Equifax) | Free | Not FICO; may differ slightly |
| Experian | FICO Score 8 | Free | Most used by lenders |
| Discover Credit Scorecard | FICO Score 8 | Free | No Discover account required |
| Your credit card app | Usually FICO 8 | Free | Chase, Citi, Amex, and most others offer this |
| AnnualCreditReport.com | Full reports (no score) | Free | 3 free reports/year from all bureaus |
You can also check your full credit reports (which are different from scores) for free at AnnualCreditReport.com. Learn how to dispute credit report errors if you find inaccuracies.
Frequently Asked Questions
See the FAQ section above for direct answers on good credit score thresholds, mortgage minimums, car loan requirements, and improvement timelines.
Related Guides
- How to Build Credit from Scratch
- How to Dispute a Credit Report Error
- Credit Utilization Guide
- How Long Do Things Stay on Your Credit Report?
- Soft vs. Hard Credit Inquiry
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