What Is a Good Credit Score? - NerdWallet (2024)

MORE LIKE THISThe Ultimate Credit Score GuideMaking MoneyPaying Your BillsPersonal Finance

What Is a Good Credit Score? - NerdWallet (1)

Generally speaking, a good credit score is 690 to 719 in the commonly used 300-850 credit score range.

Scores 720 and above are considered excellent, while scores 630 to 689 are considered fair. Scores below 630 fall into the bad credit range.

Lenders, such as credit card issuers and mortgage providers, may set their own standards on what "good credit" means as they decide whether to extend credit to you and at what interest rate.

In practice, though, a good credit score is the one that helps you get what you need or want, whether that's access to new credit in a pinch or lower mortgage rates.

What’s a good credit score with FICO vs. VantageScore

FICO, the most widely known credit scoring system, and its competitor VantageScore both use the 300-850 range. However, the two systems group good credit scores slightly differently from each other.

What is a good FICO score?

A good FICO score is 670 to 739, according to the company's website. According to FICO's most recently available data for October 2023, the average credit score was 717, which falls in the good range.

FICO says scores of 580 to 669 are considered "fair" and 740 to 799 are considered "very good." Anything at 800 or above is considered "exceptional." NerdWallet’s credit score bands, used for general guidance, are pictured above.

FICO comes from Fair Isaac Corp., the company that first developed a credit scoring system. It uses data about consumers from the three major credit reporting bureaus: TransUnion, Equifax and Experian.

What is a good VantageScore?

A good VantageScore is 661 to 780, which the company calls a "prime" credit tier. The average VantageScore 3.0 as of October 2023 was 700.

VantageScores 781 to 850 are considered "superprime," while 601 to 660 are "near prime." VantageScores 600 and below are considered "subprime." These ranges are for VantageScore 3.0.

VantageScore produces a similar score to competitor FICO using the same credit report data from the three bureaus.

NerdWallet offers you a free credit score using VantageScore and your TransUnion credit report.

Get score change notifications

See your free score anytime, get notified when it changes, and build it with personalized insights.

Get started

What a good credit score can get you

Having good credit matters because it determines whether you can borrow money and how much you'll pay in interest to do so. Having a good credit score is also helpful whether you plan to apply for credit or not.

Here are some things a good credit score can help you get:

  • An unsecured credit card with a decent interest rate, or even a balance-transfer card.

  • A desirable car loan or lease. If your credit score is around 700 or below, prepare for questions about negative items on your credit record when shopping for a car. People with major blemishes on their credit are routinely approved for car loans, but you may not qualify for a low rate.

  • A mortgage with a favorable interest rate. You don’t need flawless credit to get a mortgage. In some cases, credit scores can be in the 500s. But credit scores estimate the risk that you won’t repay as agreed, so lenders do reward higher scores with lower interest rates.

  • An upper hand in the rental application process. Landlords or property managers generally aren't looking for immaculate scores. They are interested in your credit record. Learn more about what landlords look for in a credit check.

  • The ability to open new credit. This flexibility can help you cover expenses in a crisis or grant access to specialty rewards and travel cards. No matter the reason, being able to open a new line of credit when needed is a real benefit of having a good score.

A good credit score helps in other ways, too. In many states, people with higher credit-based insurance scores pay less for car insurance. In addition, some landlords use credit scores to screen tenants.

What affects your credit score?

On the list of what affects your credit score, two factors have the biggest influence: payment history, which is whether you pay on time, and credit utilization, or how much of your available credit you are using.

Other factors matter but carry a little less weight: how long you've had credit, whether you have a mix of credit types, and how frequently and recently you've applied for credit.

How to get a good credit score

Good credit habits, practiced consistently, will build your score. Here’s what you need to do:

Pay bills on time

Payment history has the largest impact of all the factors in your score. A missed or late payment can do tremendous damage to a credit score and it can stay on your credit report for up to seven years.

Keep credit utilization below 30%

Keeping your credit card balances well below your credit limits is a great financial habit. You should aim for credit utilization under 30%, but lower is better. High utilization dings your score, but the damage will fade when you're able to reduce your balances and the lower utilization shows up on your credit reports. You also may be able to lower utilization by getting a higher credit limit or becoming an authorized user on a lightly used card with a large limit.

Keep credit accounts open

Keeping older accounts open helps your average age of accounts, which has a small influence on your score. Closing an account cuts into your overall credit limit, driving up your credit utilization. However, there are some compelling reasons to close an account, including high fees or poor service.

Space out credit applications

Avoid making several credit applications in a short time frame. Credit checks for the purpose of credit decisions can cause a small, temporary dip in your score, and several in a short time can add up. That's why it's important to research credit cards before you apply.

Monitor your credit reports

Monitor your credit reports and dispute information you believe is incorrect or too old to be included (most negative information falls off after seven years). Errors could lower your scores.

Want to see what powers your credit? Check your free credit score and get personalized insights. Weekly updates let you track your progress. Sign up, it's free.

What is the highest credit score, and how many people have it?

The highest score you can have on the most widely used scales is 850. According to data from FICO, about 1.7% of all FICO scores were at the coveted 850 as of April 2023. And even if you do get there, the fluctuating nature of credit scores means you’re unlikely to keep it month after month. FICO and VantageScore's average credit scores by age reveal where most people's scores actually land.

What Is a Good Credit Score? - NerdWallet (3)

How do you get a perfect credit score?

According to FICO, those who achieve 850 scores pay on time, use credit lightly, have a long credit history and rarely open a new account. Here’s what they tend to have in common:

  • A credit history of about 30 years.

  • Uses only 4.1% of credit limit.

  • No late payments on credit reports (meaning any late payments were more than seven years ago).

You don't need a perfect credit score to get the best deals. A score of 720 or higher is generally considered excellent. And scoring 800 or above qualifies you for the best terms offered.

What Is a Good Credit Score? - NerdWallet (2024)

FAQs

What Is a Good Credit Score? - NerdWallet? ›

Generally speaking, a good credit score is 690 to 719 in the commonly used 300-850 credit score range. Scores 720 and above are considered excellent, while scores 630 to 689 are considered fair. Scores below 630 fall into the bad credit range.

What is a good enough credit score? ›

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.

Is 780 a good credit score? ›

A 780 credit score is Very Good, but it can be even better. If you can elevate your score into the Exceptional range (800-850), you could become eligible for the very best lending terms, including the lowest interest rates and fees, and the most enticing credit-card rewards programs.

Is a 720 credit score good enough to buy a house? ›

Home loans

Assuming you have enough income, a 720 credit score is likely high enough to help you get a government-backed mortgage such as an FHA for VA loan. However, it's probably not high enough to get the lowest interest rates available.

How rare is a 720 credit score? ›

Who Has a 720 Credit Score?
Credit ScoreTierPercentage of Americans
720 – 850Excellent38.12%
660 – 719Good17.33%
620 – 659Fair/Limited13.47%
300 – 619Bad31.08%

Can I buy a house with a 780 credit score? ›

Conventional lenders now require a 780 credit score or higher to qualify for the lowest mortgage interest rates, so anything above 780 is considered an excellent score to buy a house.

Can I buy a house with a 643 credit score? ›

Can I get a mortgage with an 643 credit score? Yes, your 643 credit score can qualify you for a mortgage. And you have a couple of main options. With a credit score of 580 or higher, you can qualify for an FHA loan to buy a home with a down payment of just 3.5%.

Is a 900 credit score possible? ›

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.

Is 800 credit score rare? ›

How rare is an 800 credit score? An 800 credit score is not as rare as most people think, considering that roughly 23% of adults have a credit score in the 800-850 range, according to data from FICO. A score in this range allows consumers to access the best credit card offers and loans with the most favorable terms.

Does anyone have an 850 credit score? ›

How many people have perfect FICO® Scores? Data from April 2023 found that about 1.7% of people who meet the minimum requirements for a FICO® Score had an 850.

What credit score to buy a car? ›

The credit score required and other eligibility factors for buying a car vary by lender and loan terms. Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.

What credit score is needed to buy a $400,000 house? ›

Most mortgages, including conventional loans, require a credit score of 620 or higher. It's possible to get an FHA loan with a credit score as low as 500, but many lenders require higher scores. Borrowers with higher credit scores get better rates and terms than those with low scores.

What is a good credit score by age? ›

How Credit Scores Breakdown by Generation
Average FICO 8 Score by Generation
Generation20222023
Generation Z (ages 18-26)679 - Good680 - Good
Millennials (27-42)687 - Good690 - Good
Generation X (43-58)707 - Good709 - Good
2 more rows

How big of a loan can I get with a 720 credit score? ›

You can borrow $50,000 - $100,000+ with a 720 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.

What APR will I get with a 720 credit score? ›

According to MyFICO, as of November 2022, the average APR on a 60-month new auto loan for someone with a FICO Score of 720 or higher is 5.64%. With a score in the 690-719 range, it's 6.83%. And for a borrower with a score in the 660-689 tier, the average APR is 9.19%.

Can I get a car with a 720 credit score? ›

The credit score needed for the best car loan depends on the lender, but in general, a credit score of 720 or higher will allow you to qualify for a lender's best rates.

Can I buy a house with 675 credit score? ›

A credit score to buy a house doesn't have to be perfect. In fact, the minimum credit score to buy a house can be as low as 580, which falls into the “fair credit” category. With a credit score of 620 or higher, you're eligible for most types of mortgages.

How hard is it to get a 720 credit score? ›

Everyone's credit improvement timeline is different. Reaching 720 could take weeks, months, or even years, depending on your credit score starting point. Yet even if the journey to 720 takes you longer to complete, it's still worth the effort.

What is the minimum credit score you should have? ›

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 2022, the average FICO® Score in the U.S. reached 714.

Is 600 a good or bad credit score? ›

Your score falls within the range of scores, from 580 to 669, considered Fair. A 600 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.

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Ms. Lucile Johns

Last Updated:

Views: 6067

Rating: 4 / 5 (61 voted)

Reviews: 84% of readers found this page helpful

Author information

Name: Ms. Lucile Johns

Birthday: 1999-11-16

Address: Suite 237 56046 Walsh Coves, West Enid, VT 46557

Phone: +59115435987187

Job: Education Supervisor

Hobby: Genealogy, Stone skipping, Skydiving, Nordic skating, Couponing, Coloring, Gardening

Introduction: My name is Ms. Lucile Johns, I am a successful, friendly, friendly, homely, adventurous, handsome, delightful person who loves writing and wants to share my knowledge and understanding with you.