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

The most common credit scoring model in the United States is the FICO score, which ranges from 300 to 850. Lenders generally treat scores of 670 and above as acceptable for standard loans and credit products. Scores between 740 and 799 are considered very good, and 800 or higher is excellent. Below 670, you will face higher interest rates, larger down payments, or outright rejection for mortgages, car loans, and credit cards.

The exact threshold that matters to you depends on what you are trying to borrow. A mortgage lender might require 620 to approve you, but charge a higher rate than someone with 740. A credit card issuer might deny you at 650 but approve you at 680. Auto lenders often work with lower scores than mortgage lenders do. The point is not to hit a magic number, but to understand that your score directly affects the cost and availability of credit.

Your credit score is calculated from five categories of information on your credit report: payment history (35 percent), amounts owed (30 percent), length of credit history (15 percent), credit mix (10 percent), and new credit inquiries (10 percent). A single late payment or high credit card balance can drop your score by dozens of points. Conversely, consistent on-time payments and low balances build it back up over months.

Key Takeaways

  • Scores of 670 and above are generally considered good, though lenders set their own thresholds and may require higher scores for better rates.
  • Payment history is the largest factor in your score, so a single late payment can lower it significantly, but the impact fades over time.
  • Credit utilization—how much of your available credit you are using—affects your score; keeping balances below 30 percent of your limit is a common target.
  • You can check your credit score for free once per year from each of the three major bureaus through AnnualCreditReport.com, which is the official government site.
  • Improving a damaged score takes months or years, not weeks, so the sooner you start paying on time and reducing balances, the sooner you will see movement.

How lenders actually use your credit score

A lender does not simply approve or deny you based on a single number. Instead, they use your score as one input in a larger decision. A mortgage lender might approve a 620 score if you have a large down payment and stable income, but deny a 700 score if you have high debt and a recent job change. Credit card issuers often have automated systems that approve or deny instantly based on score thresholds, but those thresholds vary by card and by the issuer's risk appetite at any given time.

Interest rates are where your score matters most. The difference between a 620 score and a 740 score on a 30-year mortgage can be 1 to 2 percentage points, which translates to tens of thousands of dollars over the life of the loan. On a car loan, the gap is usually smaller but still significant. Credit cards offered to people with lower scores often carry annual percentage rates (APRs) of 20 to 30 percent, while cards for people with excellent scores may be 10 to 15 percent.

What actually moves your credit score

Payment history is the largest factor, at 35 percent of your score. A single late payment—even 30 days late—will lower your score, usually by 50 to 100 points depending on your overall profile. The impact is worst in the first six months after the late payment, then gradually fades. After seven years, the late payment falls off your credit report entirely and no longer affects your score.

Credit utilization, the second-largest factor, is how much of your available credit you are using. If you have a credit card with a $5,000 limit and a $3,000 balance, your utilization is 60 percent. Most scoring models reward utilization below 30 percent. Paying down a balance can raise your score by 10 to 50 points within a month or two, because the change is reported to the bureaus as soon as your card issuer updates your account.

Length of credit history (15 percent) rewards you for keeping accounts open and using them responsibly over time. Closing old accounts can hurt your score because it shortens your average account age. New credit inquiries (10 percent) have a small impact; each hard inquiry (when a lender checks your score to make a lending decision) lowers your score by a few points, but the effect fades after a few months. Credit mix (10 percent) means having different types of credit—a mortgage, a car loan, and a credit card, for example—rather than only credit cards.

The difference between FICO and other scoring models

FICO is the score most lenders use, but it is not the only one. VantageScore is another model, also on a 300–850 scale, and it weights factors slightly differently. Some lenders use industry-specific scores: mortgage lenders may use FICO Mortgage Score, auto lenders may use FICO Auto Score, and credit card issuers may use FICO Bankcard Score. These specialized scores emphasize different parts of your credit history.

The score you see on a free credit monitoring app or your bank's website is often a VantageScore or a different model altogether, not the FICO score that matters for most lending decisions. This is why you might see a score of 750 on your bank's app but get denied for a mortgage—the lender was looking at a FICO score, which may be 50 to 100 points lower. The three major credit bureaus—Equifax, Experian, and TransUnion—each calculate FICO scores slightly differently because they hold different information about you.

How to check your actual credit score

You are may have access to to one free credit report per year from each of the three major bureaus through AnnualCreditReport.com, which is the official government site. That report does not include your score, only the information used to calculate it. To see your actual FICO score, you will need to pay a fee (usually $20 to $30) or use a service that offers it free in exchange for signing up for credit monitoring.

Many credit card issuers and banks now offer free FICO scores to their customers. If you have a credit card, log into your account online and look for a "credit score" or "credit health" section. Some issuers update it monthly, others quarterly. This is a legitimate FICO score, not a marketing gimmick, though the issuer may use it to decide whether to increase your credit limit or offer you a better card.

Be cautious of sites that promise a "free credit score" without a catch. Many require you to sign up for a paid credit monitoring service and will charge you after a trial period. Read the terms carefully before entering your information. The safest free option is to check your credit report through AnnualCreditReport.com, then use your bank or credit card issuer's free score tool if they offer one.

How long it takes to improve a damaged score

If you have missed payments, high balances, or collections accounts, your score will not recover overnight. The timeline depends on what happened and how long ago. A single late payment from two years ago has much less impact than one from two months ago. If you start paying on time and paying down balances today, you may see a 20 to 50 point improvement within three months, but reaching "good" territory (670+) from a damaged score usually takes six months to two years.

Collections accounts and charge-offs stay on your report for seven years, but their impact weakens over time. A collection from five years ago hurts less than one from six months ago. Bankruptcy stays on your report for seven to ten years depending on the type. The key is that every month of on-time payments and lower balances moves you in the right direction, even if the movement is slow.

Why your score matters beyond borrowing

Lenders are not the only ones who check your credit score. Landlords often run credit checks before approving a rental application, and a low score can result in a higher security deposit or outright rejection. Insurance companies in some states use credit-based insurance scores to set premiums. Employers in certain industries may check your credit as part of a background check, though they cannot see your score—only whether you have delinquencies or collections.

Utility companies and cell phone providers may also check your credit before opening an account. If your score is very low, they may require a deposit or refuse service. This creates a cycle: a damaged score makes it harder to get credit, which makes it harder to build a better score. Breaking that cycle requires starting with the basics—paying bills on time and reducing existing balances—even if the improvements are slow.

Frequently Asked Questions

Is 700 a good credit score?

Yes, 700 is considered good and will may have access to you for most standard loans and credit products at reasonable rates. You may not get the absolute best rates available, which typically go to scores of 740 and above, but you will not face the higher costs and restrictions that come with scores below 670.

How much does one late payment hurt my score?

A single late payment typically lowers your score by 50 to 100 points, depending on how late it is and your overall credit profile. The impact is worst immediately after the late payment and gradually fades over time. After seven years, it falls off your report entirely.

Can I raise my credit score quickly?

No. Paying down a high credit card balance can raise your score by 10 to 50 points within a month or two, but meaningful improvement from a damaged score takes months or years. Consistent on-time payments and lower balances are the only reliable path.

Does checking my own credit score lower it?

No. Checking your own credit report or score is a soft inquiry and does not affect your score. Only hard inquiries—when a lender checks your score to make a lending decision—have a small impact, and that fades after a few months.

What is the difference between my credit score and my credit report?

Your credit report is a detailed record of your credit history: accounts, payment history, balances, and collections. Your credit score is a three-digit number calculated from that report. You can have a good credit report but a low score if you have recent late payments or high balances.