Highlights:
- Credit scores are three-digit numbers designed to represent the likelihood you will pay your bills on time.
- There's no “magic credit score number” that guarantees a loan approval or better interest rates and terms.
- Credit score ranges vary based on the scoring model used to evaluate them.
Credit scores are three-digit numbers designed to represent how likely you are to repay a lender on time.
Potential lenders and creditors look at your credit scores as one factor when deciding whether to offer you new credit. Lenders may also use your credit scores to set the interest rates and other terms for any credit they offer.
What is the highest credit score vs. a good or fair credit score? Credit scores typically range from 300 to 850. Within that range, scores can usually be placed into one of five categories: poor, fair, good, very good and excellent.
Credit score ranges—what are they?
There's more than one credit scoring model available and more than one range of scores. However, most credit score ranges are similar to the following:
- 800 to 850: Excellent Credit Score
Individuals in this range are considered to be low-risk borrowers. They may have an easier time securing a loan than borrowers with lower credit scores. - 740 to 799: Very Good Credit Score
Individuals in this range have demonstrated a history of positive credit behavior and may have an easier time being approved for additional credit. - 670 to 739: Good Credit Score
Lenders generally view those with credit scores of 670 and up as acceptable or lower-risk borrowers. - 580 to 669: Fair Credit Score
Individuals in this category are often considered “subprime” borrowers. Lenders may consider them higher-risk, and they may have trouble qualifying for new credit. - 300 to 579: Poor Credit Score
Individuals in this range often have difficulty being approved for new credit. If you find yourself in the poor category, it's likely you'll need to take steps to improve your credit scores before you can secure any new credit.
What is the highest credit score?
Typically, with most of the common credit models, 850 is the highest credit score possible and anything from 800-850 is considered excellent.
What is a good credit score?
There's no “magic number” that guarantees you'll be approved for a loan or receive better interest rates and terms. However, in many popular scoring models, borrowers need a minimum score of 670 for their credit to be considered “good.”
Overall, the higher your credit score is, the more likely you are to appeal to lenders. Higher credit scores indicate that a borrower has demonstrated responsible credit behavior in the past. So, they also often receive more favorable terms and interest rates from lenders.
How are credit scores calculated?
Your credit scores are calculated using the information found on your credit report. Your payment history, the mix of credit accounts you have, the length of your credit history and your credit utilization rate (the percentage of available credit limits you are using) are all factors that might influence your credit scores.
However, there's more than one way to calculate your credit scores. Lenders and credit reporting agencies often use different scoring models. One model might place the most importance on your payment history. Another could prioritize the types of credit you have available. Because of these differences, your score could vary depending on how it was calculated.
Your scores may also vary based on the credit reporting agency providing them. This is because not all lenders and creditors report information to all three nationwide consumer reporting agencies (Equifax®, TransUnion® and Experian®). Some may report to only two, one or none at all.
How can I improve my credit scores?
The good news is that your credit scores are not a fixed number. With time and responsible financial choices, credit scores can be improved. Just keep in mind that this process takes time. This is especially true if you haven't kept the best credit habits in the past.
Some habits that could improve your credit scores in the long term include: making your payments on time, keeping old accounts open to lengthen your credit history, and keeping your credit utilization rate low.
You'll also want to make sure to keep tabs on your credit report to confirm that the information included is up to date. Credit reports do not include your credit scores, but here are a few ways you can check your credit scores.
FAQs
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
What are the 5 tiers of credit scores? ›
Here's how FICO breaks down credit scores:
- Below 580: poor.
- 580 to 669: fair.
- 670 to 739: good.
- 740 to 799: very good.
- 800 and above: exceptional.
Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.
What is the 5 typical credit score range? ›
For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2023, the average FICO® Score☉ in the U.S. reached 715.
What is a good FICO score? ›
What is a tier 7 credit score? ›
Tier 7: A very poor score of 580 to 609 means you “have significant credit issues or have only very recently established credit.” Tier 8: An extremely poor score of 579 or below means you “have an extremely poor credit history or I have no credit history at all.”
Can I lease a car with a 650 credit score? ›
Just because your credit score is below 680 doesn't mean you won't be approved for a lease. However, you may have to pay more at the time of signing. You may also have to make higher monthly payments ranging from an extra $10 to an extra $125.
Which credit score do banks use? ›
Banks in India use the TransUnion CIBIL, Experian, Equifax, or the CRIF High Mark score. Out of these, the TransUnion CIBIL score is the one that is used most commonly. All credit rating bureaus generate credit scores and reports which help lenders assess the creditworthiness of borrowers.
Which credit score is used most often? ›
FICO ® Scores are the most widely used credit scores—90% of top lenders use FICO ® Scores. Every year, lenders access billions of FICO ® Scores to help them understand people's credit risk and make better–informed lending decisions.
Which credit score is used to buy a car? ›
FICO is an acronym that stands for: Fair Isaac Corporation, the company that developed the FICO® credit scoring. FICO® credit scores are the auto industry standard for determining a potential buyer's creditworthiness.
Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
What is a good credit score by age? ›
How Credit Scores Breakdown by Generation
| Average FICO 8 Score by Generation |
|---|
| Generation | 2022 | 2023 |
|---|
| Generation Z (ages 18-26) | 679 - Good | 680 - Good |
| Millennials (27-42) | 687 - Good | 690 - Good |
| Generation X (43-58) | 707 - Good | 709 - Good |
2 more rowsThe minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
What is the average credit score in the United States? ›
The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850. The higher your score, the better.
What's the difference between credit score and FICO score? ›
A credit score is a three-digit number that measures your financial health and how well you manage credit and debt. FICO scores are a specific type of score that lenders can use when making borrowing decisions. The FICO credit scoring system is the most widely used credit score.
Does anyone have an 850 credit score? ›
How many Americans have an 850 credit score? Only 1.31% of Americans with a FICO® Score have a perfect 850 credit score. While a score this high is rare among any demographic, older generations are more likely to have perfect credit. Baby boomers make up a whopping 59.4% of the people with an 850 credit score.
What are the 5 categories of the FICO score? ›
What's in my FICO® Scores? FICO Scores are calculated using many different pieces of credit data in your credit report. This data is grouped into five categories: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%).
What is a Tier 1 credit score? ›
While different lenders might have slight variations in their criteria, a Tier 1 credit score generally falls within the range of 800 to 850 on the FICO scale. This score range signifies excellent credit and reflects a history of responsible borrowing and timely repayments.
What tier is a 630 credit score? ›
Your score falls within the range of scores, from 580 to 669, considered Fair. A 630 FICO® Score is below the average credit score. Some lenders see consumers with scores in the Fair range as having unfavorable credit, and may decline their credit applications.
What tier is a 720 credit score? ›
With a 720 score, you're in between the excellent credit range (which is typically 750 and above) and the “fair credit” range (about 580 to 669). You may have access to more beneficial opportunities, including but not limited to: Potential access to better interest rates and loan terms.
