Credit scores above 670 generally open doors; below 580 closes most of them
A credit score is a three-digit number that lenders, landlords, and insurers use to predict whether you will pay them back. The score ranges from 300 to 850. Scores above 670 are considered good by most lenders and will get you approved for mortgages, car loans, and credit cards at standard rates. Scores between 580 and 669 are considered fair — you can still borrow, but you will pay higher interest rates. Scores below 580 make borrowing expensive or impossible through mainstream lenders.
The exact cutoffs vary by lender and by loan type. A mortgage lender might want 620 minimum; a credit card issuer might approve 550; a landlord might require 700. But the general pattern holds: higher scores cost you less money and open more options.
Key Takeaways
- Scores of 670 and above are considered good and will get you standard loan rates and most rental approvals.
- Scores between 580 and 669 are fair — you can borrow but will pay higher interest rates and fees.
- Scores below 580 make it hard to borrow from banks and credit unions; you may be steered toward payday lenders or subprime products that cost much more.
- Different lenders set different minimums, so a score that works for one loan may not work for another.
- Your score changes as you pay bills, so improving it takes months but is possible even from a low starting point.
How lenders use credit scores to decide what to charge you
When you apply for a loan or credit card, the lender pulls your credit score and uses it to decide three things: whether to lend to you at all, what interest rate to charge, and what fees to add.
A borrower with a 750 score might get a mortgage at 6.5 percent. A borrower with a 650 score applying for the same mortgage might be offered 7.2 percent — a difference of 0.7 percentage points that adds up to tens of thousands of dollars over 30 years. A borrower with a 550 score might be denied by the bank entirely and steered toward a subprime lender charging 9 or 10 percent, or told to wait and reapply later.
Credit card issuers do the same thing. A 750 score might get you a card with no annual fee and 0 percent introductory APR. A 600 score might get you a card with a $95 annual fee and 18 percent APR. A 500 score might get you a secured card that requires a cash deposit.
What landlords and insurers look for in a credit score
Landlords use credit scores differently than lenders do. A landlord is not lending you money — they are renting you an apartment and want to know whether you will pay rent on time. Many landlords require a score of 650 or higher, though some will rent to people with scores as low as 580 if other parts of the application are strong (steady income, good references, larger deposit).
Insurance companies also pull credit scores, though they call it a credit-based insurance score. This score is calculated differently than a credit score but uses some of the same information. People with lower credit scores pay higher premiums for car and home insurance, even if they have never had an accident or claim. Some states limit how much insurers can charge based on credit score, but the practice is legal in most places.
The difference between good, fair, and poor scores in real terms
| Score Range | What It Means | What You Can Expect |
|---|---|---|
| 750–850 | Excellent | Approved for most loans and credit cards at the best rates. Landlords rarely ask questions. Insurance premiums are lowest. |
| 670–749 | Good | Approved for mortgages, car loans, and credit cards. Standard interest rates. Most landlords will rent to you. Insurance rates are standard. |
| 580–669 | Fair | You can borrow, but interest rates are higher and fees are larger. Some landlords will rent to you if you have other strengths. Insurance costs more. |
| 300–579 | Poor | Mainstream lenders often deny you. Subprime lenders will lend at very high rates. Many landlords will not rent to you. Insurance is expensive or hard to find. |
Why your score matters most when you are borrowing money
The cost of a low credit score is highest when you borrow large amounts over long periods. A 1 percent difference in mortgage interest rate costs you roughly $10,000 per $100,000 borrowed over 30 years. A 2 percent difference in car loan interest costs you $2,000 per $10,000 borrowed over five years.
Credit card interest is where low scores hurt fastest. If you carry a balance, a 600 score might put you at 18 percent APR while a 750 score gets you 12 percent. On a $5,000 balance, that difference is $300 per year in interest alone.
For short-term borrowing — a payday loan, a title loan, a cash advance — credit score matters less because these lenders do not check it. But they charge 300 to 400 percent APR, so avoiding them is worth the effort to build your score.
How to know what score you actually have
You have three credit scores, one from each of the three major credit bureaus: Equifax, Experian, and TransUnion. They are usually similar but can differ by 50 points or more if the bureaus have different information about you.
You can get your scores free once per year from AnnualCreditReport.com, which is the official site run by the three bureaus. You can also get free scores from Credit Karma, Credit Sesame, or your bank or credit card issuer — these are usually updated monthly and are accurate enough to know where you stand.
When you apply for a loan, the lender will pull your score themselves, and that score may be slightly different from the one you see online because lenders use different scoring models. But if your free score is 680, the lender's score will usually be within 20 points of that.
What happens to your score when you apply for credit
When you apply for a loan or credit card, the lender pulls your credit report. This is called a hard inquiry and it lowers your score by a few points — usually 5 to 10 points per inquiry. Multiple hard inquiries in a short time (like shopping for a mortgage or car loan) count as one inquiry if they happen within 14 to 45 days, depending on the scoring model.
The score drop from a hard inquiry is temporary and usually recovers within a few months. But if you apply for many loans in a short time, the damage adds up. Checking your own score online is a soft inquiry and does not lower your score at all.
Opening a new credit card or loan also lowers your score in the short term because it reduces your average age of accounts and increases the amount of credit you owe. But over time, making on-time payments on that new account will raise your score.
Frequently Asked Questions
Is 650 a good credit score?
A 650 score is fair, not good. You can borrow money, but you will pay higher interest rates and fees than someone with a 670 or higher score. Most landlords will rent to you if your income is stable and you have other strengths in your application. For a mortgage or car loan, expect to pay 1 to 2 percent more in interest than someone with a good score.
What credit score do I need to rent an apartment?
Most landlords want a score of 650 or higher, but requirements vary widely. Some will rent to people with scores as low as 580 if you have a co-signer, a larger deposit, or proof of stable income. The best way to know is to ask the landlord or property manager directly before you apply, so you do not waste time on applications you will be denied.
Can I get a mortgage with a 600 credit score?
Some lenders will give you a mortgage with a 600 score, but most require 620 or higher. FHA loans, which are backed by the federal government, have lower score requirements than conventional mortgages. With a 600 score, you will pay a higher interest rate and may need a larger down payment or a co-signer.
How long does it take to improve a credit score?
Credit scores change slowly. Paying bills on time for three to six months will usually raise your score by 20 to 50 points. Paying off debt takes longer — it can take a year or more to see major improvement. Negative marks like late payments stay on your report for seven years but hurt your score less as time passes.
Does checking my credit score lower it?
No. Checking your own score is a soft inquiry and does not lower it. Only hard inquiries from lenders when you apply for credit lower your score. You can check your score as often as you want without any penalty.