Credit scores fall into five main ranges, and where you land determines what interest rates and terms lenders will offer you
Credit scores in the United States typically run from 300 to 850. The higher your score, the lower the risk you appear to lenders. Most scoring models divide this range into five bands: poor, fair, good, very good, and excellent. The exact cutoff points vary slightly between FICO (the most common model used by lenders) and VantageScore (used by some creditors and free credit monitoring services), but the structure is the same.
Your score affects what you pay for a mortgage, car loan, credit card, or personal loan. A score 50 points higher can mean the difference between a 6% interest rate and a 4% rate on a home loan — a difference of tens of thousands of dollars over the life of the loan. Some landlords and employers also check credit scores as part of their screening process.
Key Takeaways
- FICO scores range from 300 to 850, with scores above 670 generally considered acceptable to lenders.
- A score of 740 or higher usually qualifies you for the best interest rates on mortgages and auto loans.
- Scores below 580 are considered poor and make it difficult to borrow money at standard rates.
- Your score can change month to month based on your payment history, credit utilization, and other factors tracked by credit bureaus.
FICO Score Ranges and What They Mean
FICO scores are calculated by Fair Isaac Corporation and are used by the vast majority of lenders. The five ranges are:
| Score Range | Category | What It Means for Borrowing |
|---|---|---|
| 300–579 | Poor | Most lenders will decline you or charge very high interest rates. Secured credit cards or credit-builder loans may be your only option. |
| 580–669 | Fair | You may be approved for credit, but at higher interest rates. FHA mortgages (which allow lower scores) may be available. |
| 670–739 | Good | You meet the standards of most lenders. You will receive reasonable interest rates, though not the absolute best available. |
| 740–799 | Very Good | You may have access to for favorable interest rates and terms. Most lenders view you as low-risk. |
| 800–850 | Excellent | You receive the best interest rates and terms available. Lenders compete for your business. |
These ranges are based on historical data about how people in each band repay their debts. A lender uses your score to predict the likelihood that you will default on a loan. The score itself does not determine whether you are approved — that decision also depends on your income, employment history, debt-to-income ratio, and the type of loan you are seeking.
VantageScore Ranges
VantageScore is a newer scoring model developed jointly by the three major credit bureaus (Equifax, Experian, and TransUnion). It uses the same 300–850 scale as FICO but weights factors differently. VantageScore is less commonly used by lenders for major credit decisions, but it appears on many free credit monitoring websites and apps.
VantageScore ranges are similar to FICO ranges: poor (300–499), fair (500–600), good (601–660), excellent (661–780), and exceptional (781–850). The main difference is that VantageScore can include alternative payment data (like utility or phone bills) that FICO does not, which means your VantageScore may be higher or lower than your FICO score. When you apply for a mortgage or car loan, the lender will almost certainly use your FICO score, not your VantageScore.
Why Your Score Matters More in Some Situations
Credit score thresholds vary by loan type. For a mortgage, most conventional lenders require a score of at least 620, though 740 or higher gets you the best rates. FHA loans (backed by the Federal Housing Administration) accept scores as low as 500 with a larger down payment, or 580 with a standard down payment. VA loans (for military members and veterans) have no official minimum score, though most lenders set their own floor around 620.
For auto loans, subprime lenders will work with scores in the 500s, but you will pay significantly higher interest. Credit card issuers typically want a score of 670 or higher for standard cards; cards marketed to people rebuilding credit may accept scores below 600. Personal loans from banks usually require 660 or higher, though online lenders and credit unions may have lower thresholds.
Landlords and employers who check credit scores do not have standardized thresholds — they set their own. Some will reject anyone below 650; others focus more on negative marks like evictions or collections than on the score itself.
How Quickly Your Score Can Change
Your credit score is not fixed. It updates whenever one of the three credit bureaus receives new information about your accounts. A single late payment can drop your score 50 to 100 points. Paying down a credit card balance can raise it 10 to 50 points within a month or two. Opening a new credit card temporarily lowers your score (because it adds a hard inquiry and lowers your average account age), but the effect fades over time.
The factors that make up your FICO score are: payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit (10%). If you are trying to improve your score, focusing on payment history and amounts owed will have the biggest impact. Paying all bills on time and keeping credit card balances below 30% of your limit are the two fastest ways to raise your score.
Checking Your Own Score Without Harming It
You can check your own credit score without it affecting your score. When you check your own score, it is called a soft inquiry and does not appear to lenders. When a lender or creditor checks your score (such as when you apply for a loan), it is called a hard inquiry and does lower your score slightly — usually by 5 to 10 points.
You are may have access to to one free credit report per year from each of the three bureaus at AnnualCreditReport.com, which is the official government-authorized site. That report does not include your score, but it shows all your accounts and payment history. Many credit card issuers and banks now provide free FICO scores to their customers. VantageScore is available free through Credit Karma, NerdWallet, and other financial websites.
Frequently Asked Questions
What is considered a good credit score?
A score of 670 to 739 is considered good by FICO standards. Most lenders will approve you at reasonable interest rates. Scores of 740 and above are considered very good or excellent and may have access to you for the best rates available.
Can I get a loan with a score below 600?
Yes, but with significant limitations. Subprime lenders, credit unions, and some online lenders work with scores in the 500s. You will pay much higher interest rates, and some loan types (like conventional mortgages) will not be available to you. FHA mortgages and some auto loans are possible with scores below 600.
How long does it take to improve a low credit score?
Improvement depends on what is dragging your score down. A recent late payment may take 6 to 12 months to stop hurting you significantly. Collections accounts and charge-offs take years to fade. Consistent on-time payments and low credit card balances can raise your score 50 to 100 points within 6 to 12 months if you start from a fair range.
Does checking my credit score hurt it?
Checking your own score does not hurt it. Only hard inquiries (when a lender checks your score during a loan application) lower your score, usually by 5 to 10 points. Soft inquiries, like checking your own score or a lender pre-may have access to you, have no impact.
Why is my VantageScore different from my FICO score?
VantageScore and FICO weight the same factors differently and may include different types of data. VantageScore can factor in utility and phone payments; FICO does not. For major loans, lenders use FICO, so your FICO score is what matters most for borrowing decisions.