A decent credit score is usually 670 or higher on the 300–900 scale most lenders use

The most common credit scoring model, FICO, divides scores into ranges. A score of 670 to 739 is considered "good," 740 to 799 is "very good," and 800 and above is "excellent." Anything below 580 is typically "poor." The 670 threshold matters because that is where most lenders stop treating you as a high-risk borrower and start offering you standard rates instead of penalty rates.

However, "decent" depends on what you are trying to do. If you are renting an apartment, a landlord might accept 650. If you are buying a house, most mortgage lenders want 620 at minimum, but will charge you more if you are below 740. If you are applying for a credit card, the issuer's threshold could be anywhere from 600 to 700. The score that matters is the one your specific lender or landlord uses.

Your score also changes. It is not a permanent number. It shifts every time you make a payment, miss one, open a new account, or pay down a balance. Checking your own score does not hurt it, but a hard inquiry from a lender does — by a few points, temporarily.

Key Takeaways

  • A score of 670 or above on the FICO scale (300–900) is generally considered decent and opens access to standard lending rates rather than penalty rates.
  • Different lenders have different minimum scores: landlords may accept 650, mortgage lenders often want 620 to 740, and credit card issuers set their own thresholds.
  • Your score is calculated from payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%).
  • Checking your own credit report does not lower your score, but a hard inquiry from a lender does — usually by a few points for a few months.

How credit scores are calculated

FICO scores are built from five categories of information in your credit report. Payment history — whether you pay on time — counts for 35% of your score. The amount you currently owe across all accounts counts for 30%. How long you have had credit accounts counts for 15%. The variety of credit types you use (credit cards, car loans, mortgages) counts for 10%. New credit inquiries and recently opened accounts count for the final 10%.

This means that missing a payment hurts more than carrying a high balance, but both hurt. Opening three new credit cards in a month hurts more than opening one. Paying off a credit card balance helps immediately, but closing the account after you pay it off can actually lower your score because it reduces your credit mix and shortens your average account age.

There are other scoring models — VantageScore, for example — but FICO is what most lenders use. Your FICO score may differ slightly depending on which of the three credit bureaus (Equifax, Experian, TransUnion) the lender pulls from, because each bureau holds slightly different information about you.

Why lenders care about the 670 threshold

Lenders use credit scores to predict whether you will repay them. A score of 670 means you have a track record of paying bills on time and managing credit responsibly. Below that, the default rate rises sharply — people with scores below 620 are statistically more likely to miss payments or default entirely.

Because of that risk, lenders charge higher interest rates to borrowers below 670. A mortgage borrower with a 620 score might pay 0.5% to 1% more in interest than one with a 740 score. On a $300,000 loan, that difference adds up to thousands of dollars over the life of the loan. Credit card issuers may decline you entirely below a certain threshold, or offer you a card with a very high interest rate and low credit limit.

Landlords use credit scores differently — they are checking whether you will pay rent on time. Many will rent to someone with a 650 score if the rest of the application is solid (stable income, references). Others set the bar at 700. A few do not check credit at all. The score itself is less important than what it signals: a pattern of meeting financial obligations.

What happens if your score is below 670

A lower score does not lock you out of credit entirely. You can still get a mortgage with a score as low as 580 on an FHA loan (a government-backed program), though you will pay more in interest and fees. You can still get a credit card, though it may have a high interest rate and a low limit. You can still rent, though some landlords will decline you or ask for a larger deposit.

The practical path forward is to raise your score. The fastest way is to pay down existing balances — especially on credit cards, where high balances relative to your limit hurt your score. The second fastest is to make every payment on time for the next several months. Missed payments stay on your credit report for seven years, but their impact fades after two years. Older negative marks hurt less than recent ones.

If your score is low because of an error on your credit report — a payment marked late that you made on time, an account that is not yours — you can dispute it with the credit bureau. The bureau has 30 days to investigate. If they find the error, they must correct it and your score may jump.

How to check your own score

You can see your credit report for free once per year from each of the three bureaus at annualcreditreport.com. That site is run by the three bureaus themselves and is the only official free source. Do not use other sites that claim to offer free reports — many are trying to sell you credit monitoring or other services.

Your credit report shows what accounts you have, your payment history, and any negative marks. It does not include your actual FICO score. To see your score, you can use free tools from your bank or credit card issuer (many now offer it), or you can pay for it from FICO directly or from other scoring services. Checking your own score does not lower it — only hard inquiries from lenders do.

When you check your report, look for errors: accounts you do not recognize, payments marked late that you made on time, duplicate entries. These are common and worth disputing. You can file a dispute online with any of the three bureaus.

How long it takes to improve your score

Credit scores move slowly. A single on-time payment does not raise your score noticeably. A pattern of on-time payments over months does. Most people see meaningful improvement — 50 to 100 points — within three to six months of consistent on-time payments and paying down balances.

Negative marks fade over time. A late payment hurts most in the first two years, then gradually hurts less. After seven years, it falls off your report entirely. A bankruptcy stays for seven to ten years depending on the type. This does not mean you cannot build credit during that time — you can — but the old mark will still be visible and will still have some effect.

The fastest improvement usually comes from paying down credit card balances. If you owe $8,000 across three cards with a combined $10,000 limit, your utilization is 80% — very high. Paying it down to $3,000 (30% utilization) can raise your score 20 to 50 points in the next month or two, because utilization is recalculated every time your card issuer reports to the bureaus.

Frequently Asked Questions

Does a 670 score mean I can get a mortgage?

A 670 score puts you in range for most mortgages, but not all lenders will approve you at that score. Conventional mortgages typically want 620 minimum, but many lenders prefer 680 or higher. FHA loans (government-backed) go as low as 580. Your income, debt-to-income ratio, and down payment matter as much as your score. A lender can tell you their minimum in one call.

Will paying off my credit card hurt my score?

Paying off the balance helps your score because it lowers your utilization ratio. However, closing the account after you pay it off can hurt your score slightly because it reduces your credit mix and shortens your average account age. Keep the account open and use it occasionally to maintain the benefit.

How much does a missed payment lower my score?

A single missed payment can drop your score 100 points or more, depending on how high it was to start with. The impact is worst in the first two years after the miss. If you miss a payment, contact your lender immediately — many will work with you if you catch it within 30 days and have a good history otherwise.

Can I have different credit scores?

Yes. Your FICO score may differ slightly depending on which credit bureau the lender pulls from, because each bureau has slightly different information. You may also have different scores from different scoring models (FICO, VantageScore, etc.). Lenders typically use FICO, so that is the one to focus on.

How often should I check my credit score?

Checking your own score does not hurt it, so you can check as often as you want. Most people benefit from checking once or twice a year, or before applying for major credit like a mortgage or car loan. Checking your credit report (not the score) once a year at annualcreditreport.com is free and helps you catch errors.