What is a Good Credit Score?
What is considered a good credit score? A credit score of 670 or above is considered good, or very good, while a score above 800 is considered excellent.
How do credit scores work?
Credit scores range between 350 and 850, with most consumer credit scores falling between 600 and 750. The average FICO score in 2021 was 714 in the U.S., an increase from the year before.
Image credit: Experian
Higher credit scores make creditors more confident in a borrower’s ability to repay a loan. A higher score will often also allow you to borrow at better interest rates.
Lenders will often have their own criteria when assessing loan applications and determining what credit scores are acceptable.
For example, a good score needed to buy a house will typically be 620 or higher (or 580 for FHA loans). If you are buying a car, your credit rating can be lower than for a home purchase, but the best terms require at least a 660 score.
Your interest rate will also be determined in part by your credit rating. This shows the importance of keeping tabs on your credit score and finding ways to improve it over time.
You can get your free annual credit report at Transunion.