A good credit score opens doors to better interest rates, credit card offers, apartment approvals, and even job opportunities. But what counts as "good"? Here is everything you need to know about credit score ranges, how they are calculated, and how to improve yours.
FICO scores (the most widely used model) range from 300 to 850. Here is how lenders categorize them:
A score of 670 or higher is generally considered good. The average FICO score in the US is 716, which falls in the "good" range. With a 670+ score, you will qualify for most credit cards, auto loans, and mortgages, though the best rates require 740+.
Different lenders have different thresholds. Some premium credit cards require 750+. FHA mortgages accept scores as low as 580. The higher your score, the more options and better rates you get.
FICO scores are based on five factors, weighted by importance:
Improving your score takes time but the steps are straightforward:
Building credit from scratch takes about 6 months of credit history to generate a FICO score. Going from fair (620) to good (700) takes about 6-12 months of consistent good habits. Moving from good to excellent (780+) typically takes 2-5 years. Negative marks like late payments stay on your report for 7 years, but their impact diminishes over time.
FHA loans require a minimum 580 FICO score. Conventional loans typically need 620+. For the best mortgage rates, aim for 740+. VA and USDA loans may accept scores as low as 580.
You can get a free credit report from each bureau (Equifax, Experian, TransUnion) at AnnualCreditReport.com. Many credit cards and banks now offer free FICO score monitoring. Avoid paid services — the free options are sufficient.
No. Checking your own score is a "soft inquiry" and does not affect your score. Only "hard inquiries" from lenders when you apply for credit temporarily lower your score by 3-5 points.