Credit scores in the United States run from 300 to 850, with most people falling between 600 and 750

Your credit score is a three-digit number that lenders use to decide whether to lend you money and what interest rate to charge. The most common scoring model is FICO, created by Fair Isaac Corporation. A FICO score of 670 or higher is generally considered good; below 580 is considered poor. But "good" and "poor" are lender shorthand — what matters is what specific lenders will actually do with your number.

The range exists because credit bureaus measure the same underlying data — your payment history, how much debt you carry, how long you've had credit accounts, and how often you've applied for new credit — but weight those factors differently. A score of 750 means something different to a mortgage lender than to a credit card company, because they have different risk tolerances and different ways of using the score.

Your score changes constantly as new information hits your credit report. A late payment, a new account, or paying down a balance can all shift your number within days or weeks. You do not have one score; you have many — different bureaus calculate slightly different versions, and different lenders may see different scores depending on which bureau they pull from and which scoring model they use.

Key Takeaways

  • FICO scores range from 300 to 850, with 670 and above generally considered good by most lenders.
  • Your score is based on payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%).
  • Different lenders use different scoring models and weight factors differently, so your score matters less than what a specific lender will do with it.
  • You can check your score free once per year from each of the three major bureaus through AnnualCreditReport.com, or more often through your bank or credit card company.

How the five factors that make up your score work

Payment history (35% of your score) is the single largest factor. This means whether you paid bills on time, how late any payments were, and how many accounts show late payments. A single 30-day late payment can drop your score 100 points or more, depending on your starting score. Payments older than seven years stop appearing on your report, so an old late payment hurts less over time.

Amounts owed (30% of your score) looks at how much debt you carry relative to your credit limits — called your utilization ratio. If you have a credit card with a $5,000 limit and a $2,500 balance, your utilization on that card is 50%. Lenders prefer to see utilization below 30%. Paying down balances raises your score faster than almost any other action, because this factor updates monthly.

Length of credit history (15% of your score) rewards you for keeping accounts open over time. The older your oldest account, the better. Closing old accounts can hurt your score because it shortens your average account age. This is why financial advisors often recommend keeping old credit cards open even after you pay them off.

Credit mix (10% of your score) means having different types of credit — credit cards, car loans, mortgages, student loans. Lenders see this as evidence you can manage different kinds of debt. You do not need to carry balances on all of them; the mix itself matters.

New credit inquiries (10% of your score) tracks how often you've applied for new credit recently. Each application creates a "hard inquiry" that shows up on your report and can lower your score slightly. Multiple inquiries within a short window (usually 14 to 45 days, depending on the scoring model) for the same type of credit — like shopping for a mortgage — count as one inquiry.

What different score ranges mean to lenders

Lenders divide the 300–850 range into bands, but the exact cutoffs vary by lender and loan type. A mortgage lender may treat 620 as the minimum for approval, while a credit card company may require 650. Here is how the ranges generally work:

300–579 (Poor): Most mainstream lenders will not work with you. You may find credit cards or loans, but at much higher interest rates. Landlords often reject applicants in this range. Utility companies and cell phone providers may require deposits.

580–669 (Fair): You can get credit, but at higher rates than someone with a good score. FHA mortgages (which allow lower down payments) typically require a minimum of 580. Credit cards are available but come with higher interest rates and lower limits.

670–739 (Good): Most lenders will work with you at standard rates. You can get conventional mortgages, car loans, and credit cards with reasonable terms. This is where most Americans fall.

740–799 (Very Good): You get better rates and higher credit limits. Lenders see you as lower risk. You can negotiate better terms on mortgages and car loans.

800–850 (Excellent): You get the best rates available. This range is rare — fewer than 2% of Americans have scores this high. You have maximum negotiating power with lenders.

Why your score matters less than you think in some situations

Your credit score is one data point lenders use, not the only one. A mortgage lender will also look at your income, employment history, down payment size, and debt-to-income ratio. A landlord may care more about your rental history and references than your score. A credit card company may approve you based on income alone, even with a lower score.

Lenders also use different scoring models. FICO is the most common, but VantageScore (created by the three major credit bureaus) is growing in use. VantageScore ranges from 300 to 850 like FICO, but weights factors differently — it gives more weight to recent payment history and less to length of credit history. A score of 700 on FICO does not equal 700 on VantageScore.

Industry-specific scores also exist. Mortgage lenders use FICO Mortgage Scores, auto lenders use FICO Auto Scores, and credit card companies use FICO Bankcard Scores. These versions emphasize different factors — a mortgage score cares more about payment history on mortgages specifically, while an auto score cares about auto loans. Your general FICO score may be 720, but your mortgage score could be 710 or 730.

How to check your score without paying

You are may have access to to one free credit report per year from each of the three major bureaus — Equifax, Experian, and TransUnion. Get them at AnnualCreditReport.com, the official site run by the bureaus themselves. The report shows what information they have on file but does not include your score.

To see your actual score free, check your bank or credit card company's website or app. Most banks and card issuers now show your FICO score or VantageScore free to customers, updated monthly. Credit Karma and similar sites show your VantageScore free. These free scores are real scores, not estimates — they come from actual credit bureaus.

Paid credit monitoring services exist, but they are not necessary to track your score. If you want to monitor your score monthly without paying, use your bank's free tool or a free site like Credit Karma. If you want to dispute errors on your report, you can do that free through AnnualCreditReport.com or by contacting the bureaus directly.

What raises and lowers your score over time

Paying bills on time is the single most effective way to raise your score, because payment history is 35% of the calculation. One on-time payment does not move the needle much, but a consistent pattern over months does. If you have late payments on your report, the damage fades over time — a late payment from five years ago hurts less than one from last month.

Paying down credit card balances raises your score relatively quickly because utilization updates monthly. Paying off a card entirely can jump your score 10 to 50 points within a month or two. Paying off an installment loan (car, personal loan) also helps, though the effect is usually smaller than paying down revolving credit.

Hard inquiries lower your score slightly (usually 5 to 10 points) but only for a few months. Applying for multiple credit cards in a short time can add up. Opening new accounts lowers your score initially because it lowers your average account age and creates an inquiry, but the effect fades as the account ages.

Closing old accounts can lower your score because it reduces your total available credit and shortens your average account age. Maxing out credit cards or letting balances creep up lowers your score because it raises your utilization. Missing payments or having accounts sent to collections can drop your score 100 points or more and will stay on your report for seven years.

Frequently Asked Questions

Is 650 a good credit score?

650 is in the fair range — not poor, but not good. Most mainstream lenders will work with you, but at higher interest rates than someone with a 700+ score. You can get credit cards and loans, but your options are more limited and more expensive. For a mortgage, 650 is below the conventional minimum (usually 620–640) but may may have access to for FHA loans.

How much does one late payment hurt my score?

A single 30-day late payment can drop your score 100 points or more, depending on your starting score and credit history. The damage is worst if you have a short credit history or few accounts. The impact fades over time — after two years it hurts less, and after seven years it stops appearing on your report entirely.

Can I raise my score 100 points in a month?

Unlikely, but possible in specific situations. Paying off a large credit card balance can raise your score 50+ points in a month because utilization updates immediately. Disputing and removing an error from your report can also cause a large jump. Most score improvements happen gradually over months as you build a pattern of on-time payments and lower balances.

Why did my score drop when I paid off a loan?

Closing an account (even by paying it off) can lower your score slightly because it reduces your total available credit and may shorten your average account age. The effect is usually small and temporary. Keep old credit cards open after paying them off to avoid this dip.

Do I need to carry a balance to build credit?

No. You build credit by having accounts open and making on-time payments. You do not need to carry a balance or pay interest. Use a credit card for small purchases, pay it off in full each month, and your score will improve over time. Carrying a balance only helps if you are trying to show you can manage debt — but paying interest is expensive and unnecessary for that purpose.