What Is a Fair Credit Score? | Capital One (2024)

Most credit scores fall between 300 and 850. Depending on where yours fall within that range, your credit might be considered excellent, good, fair or something else. But what exactly are fair credit scores? And where do fair credit scores fall in that range?

As with many things related to credit scores, the answers can vary. Keep reading to learn how to tell whether you have a fair credit score, why credit scores are important, and what you can do to help improve yours.

Key takeaways

• Credit scores are three-digit numbers that help show lenders how likely you are to repay your loans on time.
• Lenders use credit scores to help assess creditworthiness. Scores also are used to determine what terms and interest rates lenders offer for loans and credit cards.
• A fair credit score typically falls somewhere between 580 and 660, depending on the scoring model.
• If your credit is considered fair, paying bills on time every month and managing your credit responsibly can help improve your scores.
• Responsibly using a secured credit card, like Quicksilver Secured from Capital One, is one way to help build credit while earning cash back on everyday purchases.

What’s considered fair credit may differ slightly based on what credit-scoring company the scores came from. You can see the differences in models from two commonly used companies below:

• FICO says a fair credit score is between 580 and 669.
• VantageScore says fair scores fall between 601 and 660.

Ultimately, it’s up to lenders to decide for themselves who to extend credit to and on what terms. But if you’re interested in how scores are classified by the two major credit scoring companies, FICO and VantageScore, take a closer look below.

Here’s how FICO categorizes its scores:

• Exceptional (800-850): Borrowers in the exceptional credit score range are the most likely to qualify for credit and get good interest rates, according to Experian®, a major credit bureau.
• Very good (740-799): FICO says borrowers in this category also tend to have higher-than-average credit scores. That makes it easier to qualify for favorable credit terms.
• Good (670-739): Lenders are generally willing to extend credit to people with good credit scores because they’ve typically proven they will repay borrowed money.
• Fair (580-669): While credit scores in the fair range are below average in the U.S., lenders may still approve borrowers for credit products. Options could be more limited, though.
• Poor (300-579): Applicants with credit scores in this range may be turned down for credit requests. Or the lender may approve the application but require a fee or deposit upfront.

Here’s how VantageScore says its scores might be judged:

• Excellent (781-850): This is the best category possible for VantageScore and is sometimes called superprime. Potential borrowers with excellent credit are usually trusted to repay what they borrow.
• Good (661-780): Sometimes referred to as prime borrowers, people with scores in this range are unlikely to have trouble getting approved for loans.
• Fair (601-660): It could be more difficult for people with fair credit scores to be approved for loans or credit cards. And loan approvals may come with higher interest rates.
• Poor (500-600): Having a credit score in this range could mean higher interest rates if a loan is approved at all.
• Very Poor (300-499): Similar to poor credit, getting loans could be difficult. But there are ways to improve your scores.

Fair credit scores generally fall near the middle of credit score ranges. And good credit scores are a step above fair scores.

A good FICO score falls between 670 and 739, while VantageScore’s range for good scores is from 661 to 780.

The better your credit is, the better a candidate you may be for things like credit cards and loans. But that’s just the start. Having strong credit is important in a number of areas:

• Credit cards: A higher credit score may improve your chances of qualifying for a credit card that best fits your situation—whether you’re looking for a good rewards program or a low APR.
• Mortgages and other loans: Strong credit can also help you qualify for mortgages, auto loans, personal loans and more.
• Interest rates: If you qualify for a loan or credit card, the lender may also use your credit score when deciding your interest rate or credit limit. Generally, a higher credit score could help you get better terms.
• Rental applications: Landlords may pull your credit report to help them decide whether you qualify for an apartment lease.
• Employment applications: With your written permission, employers may pull your credit reports during a background check.
• Insurance premiums: Depending on state laws, insurers may consider your credit history when determining premiums.
• Deposits: Cellphone providers and utility companies may decide to waive security deposits for people with strong credit.

These are just a few of the reasons higher credit scores can be so valuable. If you’re not satisfied with your scores, there are things you can do to help improve them.

While you may qualify for loans with fair credit, improving your scores could help you get more favorable terms. Here are a few steps you can take to help you work toward a better credit score:

• Use credit responsibly. There are several ways to show lenders you’re a responsible borrower, like paying your bills on time every month. This shows lenders you’re following the terms of your agreement. Also, try to keep your credit utilization low. The Consumer Financial Protection Bureau recommends doing this by keeping your credit card balances to 30% of your available credit card limits across all accounts.
• Avoid payment mistakes. Payment history is a key credit scoring factor. And late payments can lead to lower scores. Credit aside, you could end up being charged more in interest or fees too. Plus, paying only the minimum amount due or maxing out your credit limit can keep your credit utilization ratio high and bruise your credit.
• Consider applications. Opening too many new credit accounts within a short period of time could hurt your scores because credit scoring formulas take recent credit inquiries into account. It could also give lenders a negative impression of your personal finances.
• Monitor your credit. Checking your credit reports regularly can help ensure that the information used to calculate your credit scores is accurate. You can take a look at your TransUnion® credit report anytime through CreditWise. And you can get free copies of your credit reports from each of the three major credit bureaus—TransUnion, Equifax® and Experian—at AnnualCreditReport.com.
• Consider a secured credit card. A secured credit card can be a great tool for those with fair credit or low scores. Secured cards require a security deposit to open the account, which is why they’re typically easier to be approved for. But like a credit card, a secured credit card can help build credit if used responsibly.
• Beware of quick fixes. Remember that credit repair and credit building take time. There’s no such thing as a quick credit fix. But it’s never a bad time to start developing good habits to help improve your credit.

When used responsibly, credit cards could be one way to build credit. By making on-time payments and keeping your balance low, you may help boost your credit scores over time.

You can see a few options by checking out Capital One’s credit cards for fair credit, like the Quicksilver or Platinum. You can also see whether you’re pre-approved, without affecting your credit.