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Key takeaways:
- A good credit score range falls midway within the 300-850 point scoring system most lenders use.
- FICO defines “good credit” as a score between 670 and 739. At VantageScore, the equivalent (what it calls “Prime credit”) is any score within the 661 to 780 range.
- When you reach this level on the scoring ladder, navigating every step of the loan borrowing process becomes easier and gets you access to better terms.
- Focusing on the most impactful scoring factors (your payment history and debt-to-available-credit use) will help you gain the points needed to go from “fair” to “good”
In the world of credit scoring, aiming for “good credit” is a great goal. Good credit gets you access to competitive interest and increases your approval odds for credit cards, home or car loans, and even makes it easier to secure a place to rent.
When you reach the higher end of the mid-range of the credit scorecard, moving up to the next level won’t take much effort. Consistency is key: Stick to the good habits that got you to this rung, and over time you’ll see your score climb from good to great. And if you currently have so-so credit, concentrating on two of the most high-impact scoring categories – making on-time payments and keeping your spending well within your credit limits – will help you make the leap from “fair credit” to “good credit” in no time.
Let’s get into some score-range specifics and how the impact a handful of points has on some common financial goals.
Good credit score range explained
A credit score is a three-digit number between 300 and 850 that lenders and service providers use to assess your credit risk. It’s an at-a-glance measurement of how likely you are to repay your debts on time.
A “low” credit score (as in one in the 300-600 range) indicates that you may have struggled to keep up with your financial obligations or simply don’t have a lot of borrowing experience under your belt yet. A “high” score (mid-700s and up) tells lenders that you’ve got a solid history of managing your debts responsibly and would likely be an ideal customer.
In the middle ground between “poor” and “excellent” is “good credit” territory. A good credit score is, roughly speaking, anything within the mid-600 to upper-700 range.
Why the squishy range? Because the two major credit score providers – FICO® Score and VantageScore® – use slightly different point ranges and very different labels to categorize consumer creditworthiness:
- The “good credit” point range at FICO is 670-739, which falls dead center within the five scoring tiers it uses.
- The equivalent score range to achieve what VantageScore calls “prime credit” (the second highest level of four) is 661-780.
Now that we’ve gotten the numbers out of the way, let’s put these scores in context and look at how they impact your finances.
What is considered a good FICO score
The FICO scoring model, developed by the data analytics firm Fair Isaac Corporation and rolled out in the 1950s, is the most commonly used scoring system in the lending industry. Because of its long-time standing, “FICO score” has become practically synonymous with the term “credit score,” much like “Kleenex®” is for “facial tissue.”
FICO uses a point range from 300 (poor credit) to 850 (excellent) to grade consumers on their creditworthiness. As mentioned earlier, a score of 670 or higher is considered a good FICO score.
For context, here’s the full range of FICO scoring tiers and what each level tells lenders about your creditworthiness:
- Exceptional credit – 800-850: Those at the upper end of the range tend to have a very long track record (decades, in many cases) of responsible credit use. These good habits are rewarded by the financial industry in the form of the lowest interest rates on loans and credit cards, easy approval odds, higher lines of available credit and likely a flurry of credit offers clogging your mailbox.
- Very good credit – 740-799: Although it’s not the tippy-top of the FICO scoring range, making it to this level is worth celebrating. It’s a reflection of consistent, responsible credit behavior (like on-time payments and not overextending yourself) and that you’ve likely been practicing for years. You’re a desirable customer in the eyes of lenders and the odds are good that you’ll be able to nab loans and credit cards with very competitive rates.
- Good credit – 670-739: Kudos to you for hitting this important milestone. You’ve proven your ability to handle the credit you’ve been using, now it’s all about inching up to firmly plant your feet on the 700-plus rung. Although you might not qualify for the lowest competitive rates you see advertised, you’re well within the score range required to get approved for many common financial products.
- Fair credit – 580-669: If you’re newer to the credit scoring game, consider this a necessary pit stop on the credit building path. If you’ve been borrowing for a while and are within this range, it might be because of recent credit use boo-boos (e.g., late payments, etc.) negatively impacting your score. Most lenders consider consumers in this range “subprime” borrowers. This makes them cautious about extending lines of credit, and when they do, they’ll set higher interest rates to reflect the potential risk of lending to you.
Very poor credit – 300-579: Everyone’s gotta start somewhere, right? If your score is in this range it could be that you’re just now dipping your toe into the world of borrowing money and there’s not a lot of information FICO can use to gauge your habits. Or perhaps you have some more serious credit issues (defaults, bankruptcy) affecting your score. This is what lenders deem “subprime” territory. In practice, that means that credit denial is, unfortunately, common. If you are approved for a product, you’ll pay higher interest rates, face stricter rules, and qualify for only very low lines of credit (or ones you secure with your own money).
What constitutes a good VantageScore
Just as Kleenex has competitors in the facial tissue space, so does FICO. VantageScore® is a joint alternative scoring model created through a partnership between the major credit scoring bureaus, Equifax®, Experian® and TransUnion®.
Like FICO Scores, VantageScores rates creditworthiness on a point scale from 300 to 850. But instead of five credit tiers it uses four (from “Subprime” to “Superprime”). A “good” VantageScore falls in the 661 to 780-point range, which is the “prime credit” tier on the company’s rating scale.
Although its descriptions differ, the score range breakdown VantageScore uses generally align with FICO’s:
- Superprime credit – 781-850: The top echelon in the VantageScore range (comparable to FICO’s “Excellent” tier), if your score clocks in here you’ll find it relatively easy to qualify for the best advertised rates and terms on loans and likely sail through the approval process.
- Prime credit – 661-780: The “prime” descriptor here is apt since people with scores in this range are very likely to be approved for loans at competitive rates – not the best, but not bad, either. The broader point spread here (it spans the “good” and “very good” FICO categories) means that those at the higher end will likely enjoy more competitive interest rates and easier credit approval than those at the lower end.
- Near prime credit – 601-660: Within this range (similar to having “fair credit” in FICO-speke), you’re thisclose to merging onto financial easier street. There are definitely lenders who will work with you. But red-carpet-treatment (generous terms and competitive interest rates) aren’t yet on the table.
- Subprime credit – 300-600: The 300-point breadth of this range is where VantageScore deviates the most from the FICO model. FICO distinguishes between “fair” and “poor” credit by providing two distinct ranges. VantageScore’s subprime range encompasses both. But it’s probably fair to assume that if your score is on the lower side (400 or less), your risk profile will make it difficult to access conventional credit products.
Good vs. bad credit score range
Where you fall within the “uh oh” to “awesome” credit score ranking system can have a very real impact on your financial options. Here’s a side-by-side snapshot of the full credit score spectrum used by FICO and VantageScore and how each level translates to the real-world borrowing experience.
| FICO Score range | VantageScore range | What it means for your financial options | |
|---|---|---|---|
| Excellent credit | 800-850 | 781-850 | You should have no trouble getting approved for a loan and will be offered the best interest rates available and even premium perks. |
| Very good credit | 740-799 | 661-780 | Your approval odds for products that feature competitive interest rates and other favorable terms are very good with a score in this range. |
| Good credit | 670-739 | 601-660 | Access to mainstream financial products with decent rates opens up at this level, though you may not qualify to receive the lowest advertised rate. |
| Fair credit | 580-669 | 500-600 | Lower approval odds make it challenging to qualify for credit. The alternatives for those seen as higher-risk borrowers often come with high fees, high interest rates, low lines of available credit and strict repayment terms. |
| Poor credit | 300-579 | 300-499 | Credit denial is common when you fall into this scoring tier due either to having a thin history of credit use or unflattering marks in your credit file. Judicious use of credit builder products (e.g., a secured credit card) will help build a better credit history. |
Fun fact time! The average American is doing a pretty solid job of handling credit. The average U.S. FICO Score is 715, as of April 2025. The average VantageScore is 701, as of October 2025.
Why a good credit score matters for your wallet
A good credit score is more than just something to boast about. When you reach this level on the scoring ladder, navigating every step of the borrowing process becomes easier and more financially advantageous. Suddenly invitations to the borrowing party start flowing, and access to the VIP lounge (the best available terms) are within reach.
With a good credit score you qualify for:
- Higher loan and credit limits: Having proven your ability to handle the credit that you’ve been extended makes your existing lenders more comfortable raising your credit card spending limits. The same kind of grace extends to applying for new loans where there aren’t as many hurdles (like higher down-payment requirements) standing between you and approval.
- Lower interest rates: More competitive interest rates help you save money on your loans. For example, the average new car loan interest rate is less than 7% if your score is in the good range versus roughly 10% to 13% for those with lower scores. It’s a similar story with mortgage rates, with nearly a 1% difference in what you pay on a 30-year fixed-rate mortgage between the highest and lowest credit scores.
- Lower monthly payments: Qualifying for lower interest rates directly impacts your wallet in terms of what you’re required to pay each month on your loans. Better credit can save you tens of thousands of dollars in interest over the decades on a home loan, for example.
- Easier approval: Lending decisions are all about assessing risk. Obviously, banks want to get paid on time and in full. A good credit score (that shows a history of on-time payments and reasonable spending habits) is the most direct sign that a potential customer has been handling their money responsibly and is likely to continue to in the near future.
- Better terms: Having a good credit score means you’ll have access to more favorable contractual terms on financial products. This extends beyond your chances of approval and the interest rates you’re offered. It can also determine if you qualify for premium account perks, such as sign-up bonuses, 0% interest offers, and whether or not you’ll have to pay an annual fee.
- Access to premium financial products: Good credit is often a prerequisite for rewards credit cards, which usually have higher credit score requirements than non-rewards cards.
- More wiggle room if your score changes: When you’re in the middle of the good-credit zone, you have a more comfortable buffer zone when you do take actions that cost you a few points. This helps you from dropping into a lower credit score tier when, for example, you apply for a new credit card or eat up more of your line of credit during higher-spend months, which affects the all-important debt-to-available credit ratio.
Good credit scores needed for common goals
Buying a house
Getting a loan for a big-ticket purchase like a home is possible even with a low credit score. But it depends on the loan type and other factors (e.g., the size of your down payment, income, and need for a co-signer with strong credit).
Individual lenders often have their own definition of what they consider “good” vs “not good enough” credit to qualify for a mortgage. But in general, the minimum credit score you need for the different types of home loans available ranges from 500 to 640:
- Conventional loan: 620+
- FHA loan: 580 (with a 3% down payment); 500 (with a 10% down payment)
- VA/USDA loan: Although there’s no official minimum, a score in the 620-640 range is typically preferred
With good credit – a FICO Score above 720 – you’re well within the range to qualify for a major loan with decent terms. Being on the higher end of this scoring tier translates to lower interest rates and monthly payments. Here’s an example of how different scores affect your mortgage terms:
Average interest rate on a $350,000 mortgage by credit score (as of Jan. 2025)
| FICO Score | 30-year conventional APR | Monthly payment |
|---|---|---|
| 780+ | 7.07% | $1,876 |
| 760 | 7.18% | $1,897 |
| 740 | 7.26% | $1,912 |
| 720 | 7.38% | $1,935 |
| 700 | 7.42% | $1,942 |
| 680 | 7.55% | $1,967 |
| 660 | 7.61% | $1,979 |
| 640 | 7.72% | $2,000 |
| 620 | 7.89% | $2,033 |
Source: Experian.com and Curinos LLC, January 3, 2025; assumes a $350,000 mortgage and 30-day rate-lock period
Financing a car
Banks, dealerships, credit unions and auto financing companies are free to set their own lending criteria when deciding which customers to approve and at what rates. Similar to the mortgage industry, having a lower score doesn’t necessarily mean you won’t be approved for a loan. But you may be required to make a higher down payment and be forced to borrow at less-than-ideal interest rates.
According to Experian research on the state of the automotive finance market in 2025, interest rates for a new car loan ranged from 5.18% for those with excellent credit to nearly 16% for deep subprime borrowers.
Average auto loan interest rate by credit score
| Credit score range | New car loan APR | Used car loan APR |
|---|---|---|
| 781+ | 5.18% | 6.82% |
| 661-780 | 6.70% | 9.06% |
| 601-660 | 9.83% | 13.74% |
| 501-600 | 13.22% | 18.99% |
| 300-500 | 15.81% | 21.58% |
Source: Experian data as of Q1 2025; VantageScore 4.0 used
Renting an apartment
Although there’s no universal credit score cut-off for renting an apartment, a general rule-of-thumb is that a score of 700 or higher will get you in the door, according to online real estate listing site Zillow. A good credit score makes it easier to get approved as a renter and can save you from higher out-of-pocket costs – like a larger security deposit – and having to line up a co-signer on a lease.
A background check – which includes pulling your credit history – is part of the standard rental application process. Here’s how landlords may view your credit score when screening applicants:
| Credit score | What your score means to landlords |
|---|---|
| 700+ | Very low risk |
| 600-699 | Likely acceptable, depending on property type |
| Below 600 | Higher risk and may require additional steps (e.g., a larger security deposit, proof of stable income, a co-signer with better credit) |
Source: Zillow.com
Key factors that influence your credit rating
Both your FICO Score and VantageScore are based on the information the credit reporting bureaus collect about about your payment history (super important), amounts owed (or balances owed), the types of credit you use, how long you’ve been using credit, and how much new credit you’ve applied for.
These two scoring models assign slightly different weights to each key factor that influences your credit score. Here’s the breakdown and what each factor means:
Payment history
Your payment history is a record of how timely you are at paying your bills. This is one of the most important scoring factors, as it tells lenders how likely they are to be repaid on time.
In the FICO scoring model payment history accounts for 35% of your overall score. The VantageScore 3.0 model weights payment history at 40%. Translation: Nail this scoring factor (and the one just below) and you’re well on your way to credit score greatness.
Credit utilization
How much of your available credit line you’re using – the aptly named credit-utilization rate – counts for 30% of your FICO Score and 20% of your VantageScore.
Here’s how it works: If you have a $1,000 credit line on a credit card and have a $500 balance on the card, your credit utilization rate is 50%. This calculation is also applied to your overall credit usage – the total amount of available spending power you have. If you have three cards with a total of $3,000 you’re allowed to use, the $500 balance would equal a 16.6% overall credit utilization ratio. (See below for recommended levels for nailing this scoring category. Hint: Lower is better.)
Length of credit history
How long you’ve been a borrower counts for 15% of your FICO Score. VantageScore measures this slightly differently by considering both the length of your credit history and your credit product mix in a single category. Its “depth of credit” rating category impacts 21% of your total credit score.
Although you can’t control how quickly the earth rotates around the sun, the good news is that the mere passage of time (be patient) and good credit habits (on-time bill payments, especially) will naturally lead to a higher score.
New credit applications
When you apply for new credit and a lender pulls your credit history to make a decision, the inquiry temporarily affects your score. This is known as a “hard inquiry,” as opposed to a “soft inquiry” when you check your own credit, which has no effect at all on your score.
FICO assigns a 10% weight to this scoring factor versus 5% within the VantageScore system. In other words, yeah, it matters. But not as much as you might think. Plus, the impact of a hard inquiry is typically minimal (just a handful of points) and it doesn’t take long for it to no longer affect your credit score.
The key is to keep new applications to a minimum (think a few, at most, each year) so that you don’t look like you’re spamming lenders willy-nilly for access to more spending cash.
Credit mix
Your credit mix refers to the types of accounts you use, including revolving credit (e.g., credit cards) and installment credit (personal, auto and mortgage loans). Credit mix counts for 10% of your FICO Score, whereas VantageScore doesn’t treat it as a standalone rating category. Instead it is included in the “depth of credit” category along with credit history length which, combined, affect 21% of your overall score.
Having experience with a variety of credit accounts shows versatility and can help inch your score higher, there are better strategies to pretty up your score than taking on debt that you don’t need.
Next steps to unlock your financial progress
Building credit requires small, consistent steps – and Chime is here to support you along the way. With features designed to help you spend smarter and build stronger credit over time, you can keep moving toward the financial future you want.
Ready to take the next step in your credit journey? Get started with Chime today.