What Is a Good Credit Score?

A good credit score falls between 670 and 739 on the FICO scale, which ranges from 300 to 850. Scores of 740 and above are considered very good, while anything above 800 is exceptional.

The average FICO score in the United States sits at 716 as of early 2026, which falls right in the "good" range. But what counts as "good enough" depends on what you're trying to do. Buying a house, financing a car, or applying for a credit card each come with different score thresholds.

Here's a breakdown of the full FICO score ranges and what each one means for your financial options.

FICO scores are used by roughly 90% of U.S. lenders when making credit decisions. The score breaks down into five tiers:

• Exceptional (800-850): You qualify for the best interest rates and terms available. Only about 21% of Americans have scores in this range.
• Very Good (740-799): You'll get approved for most credit products at competitive rates. Lenders see you as a low-risk borrower.
• Good (670-739): This is where the average American falls. You can qualify for most loans and credit cards, though you may not get the absolute best rates.
• Fair (580-669): You might still get approved, but expect higher interest rates and less favorable terms. Some lenders may require a larger down payment or a co-signer.
• Poor (300-579): Getting approved is difficult. If you do qualify, interest rates will be significantly higher. Secured credit cards or credit-builder loans are often the best path forward.

It's worth noting that VantageScore, the other major scoring model, uses the same 300-850 range but defines "good" as 661-780. So depending on which model your lender uses, the threshold shifts slightly.

Mortgage lenders have specific credit score minimums depending on the loan type:

• Conventional loans: 620 minimum, but 740 or higher gets you the best rates
• FHA loans: 580 minimum with 3.5% down payment (500-579 with 10% down)
• VA loans: No official minimum score, though most lenders want 620 or higher
• USDA loans: No official minimum, but 640 is a common lender requirement

Keep in mind that a higher score does more than just get you approved. On a $300,000 mortgage, the difference between a 680 and a 760 credit score could save you tens of thousands of dollars in interest over a 30-year term.

For a deeper look at what you need, check out our guide on what credit score is needed to buy a house.

Auto lenders are generally more flexible than mortgage lenders. You can get a car loan with a score in the 500s, but the interest rate difference is massive.

Here's a rough breakdown of what to expect:

• 720 and above: The best auto loan rates, typically around 5-6% APR for new cars
• 660-719: Decent rates, usually in the 7-9% range
• 600-659: Higher rates, often 10-14%
• Below 600: Subprime territory with rates that can exceed 15-20%

If your score needs work before you finance a vehicle, a car loan can actually help raise your credit score over time as you make consistent payments.

Credit scores tend to increase with age, primarily because older consumers have longer credit histories and more established payment records.

Here's the approximate average FICO score by generation:

• Gen Z (18-27): 680
• Millennials (28-43): 690
• Gen X (44-59): 709
• Baby Boomers (60-78): 745
• Silent Generation (79+): 761

If you're younger and your score is below these averages, don't panic. Credit scores are built over time, and starting good habits early, like paying bills on time and keeping balances low, will pay off.

The most important thing isn't how your score compares to your age group. It's whether your score qualifies you for the financial products you need right now.

Five factors determine your FICO score, each carrying a different weight:

Payment history (35%) is the single biggest factor. Even one late payment can drop your score significantly, and that mark stays on your report for up to seven years. Set up autopay if you're worried about missing due dates.

Credit utilization (30%) measures how much of your available credit you're using. Using more than 30% of your total credit limit starts to hurt your score. Below 10% is ideal. For example, if you have a $10,000 credit limit, try to keep your total balances under $3,000, and ideally under $1,000.

Length of credit history (15%) looks at how long your accounts have been open. This is why closing old credit cards can actually hurt your score, even if you don't use them anymore.

Credit mix (10%) rewards having different types of credit. A combination of credit cards (revolving credit) and installment loans like a mortgage, auto loan, or personal loan shows lenders you can manage various types of debt.

New credit inquiries (10%) tracks how often you apply for new credit. Each hard inquiry can temporarily lower your score by a few points. However, multiple inquiries for the same type of loan (like rate-shopping for a mortgage) within a 14-45 day window typically count as a single inquiry.

If your score isn't where you want it, here are the most effective ways to move it up:

Pay every bill on time. This is non-negotiable. Payment history carries the most weight, and a single 30-day late payment can drop a good score by 60-110 points. Automate your payments so you never miss one.

Pay down credit card balances. Getting your utilization below 30% (and ideally below 10%) can boost your score within a billing cycle or two. Focus on paying down cards that are closest to their limits first.

Check your credit reports for errors. About 1 in 5 consumers have an error on at least one of their credit reports, according to FTC research. Dispute anything inaccurate through the bureaus (Equifax, Experian, TransUnion). You can pull free reports at AnnualCreditReport.com.

Don't close old accounts. Even if you don't use a credit card, keeping it open helps your credit utilization ratio and your average account age.

Request higher credit limits. If your income has increased, ask your card issuers for a limit increase. This lowers your utilization ratio without you having to pay down debt.

Limit new credit applications. Only apply for credit you actually need. Each hard inquiry stays on your report for two years, though the scoring impact typically fades after about a year.

For more on how lending decisions affect your score, read our article on how a personal loan affects your credit score.

You don't need to pay anything to know your credit score. Here are the most reliable free options:

• AnnualCreditReport.com gives you free credit reports from all three bureaus (Equifax, Experian, TransUnion) every week
• Credit card issuers like Discover, Capital One, and Chase offer free FICO or VantageScore access even to non-customers in some cases
• Credit Karma provides free VantageScore 3.0 updates
• Experian offers a free FICO Score 8 through its app

Checking your own score is a "soft inquiry" and has zero impact on your credit. You can check as often as you want.

To learn more about how frequently your score changes, see how often your credit score updates.

No. On the standard FICO and VantageScore models, the maximum possible credit score is 850. There is no 900 credit score.

Some older or industry-specific scoring models (like certain FICO Auto or FICO Bankcard scores) use ranges up to 900, but these aren't the scores most lenders look at when you apply for a loan or credit card.

The good news is that once you hit 760-780, you're already getting the best rates available from most lenders. There's no practical benefit to having an 850 over a 780. Both get you the same loan terms.

Both scoring models use a 300-850 range, but they weigh factors differently and define score categories differently.

FICO Score:

• Used by 90% of top U.S. lenders
• "Good" starts at 670
• Requires at least 6 months of credit history and at least one account reported in the last 6 months
• Payment history is the heaviest factor at 35%

VantageScore:

• Growing in adoption, especially with fintech lenders
• "Good" starts at 661
• Can generate a score with as little as one month of credit history
• Uses a "trended data" approach that considers your payment patterns over time

The score your lender pulls might differ from what you see on a free monitoring app. This is normal. What matters is the overall trend: if your score is going up on one model, it's almost certainly going up on the other too.

Your credit score affects more than just loan approvals. It influences:

• Interest rates on loans and credit cards. A good score can save you thousands. On a $25,000 auto loan at 6% vs. 14%, you'd save over $5,400 in interest over five years.
• Rental applications. Many landlords check credit scores. A score below 620 can make finding an apartment significantly harder.
• Insurance premiums. In most states, auto and home insurers use credit-based insurance scores to set premiums.
• Utility deposits. Low scores often mean you'll need to put down a deposit when setting up electricity, gas, or internet service.
• Employment screening. While employers can't see your score directly, they can review your credit report with your permission, and negative marks may affect hiring decisions in finance or government roles.

Building a good credit score is one of the most impactful financial moves you can make. It doesn't cost anything, but it affects almost every major financial decision you'll face.