A great credit score is usually 740 or higher, though lenders define it differently
There is no single official definition of a "great" credit score. The three major credit bureaus — Equifax, Experian, and TransUnion — do not publish a standard. Instead, individual lenders set their own thresholds based on what they are willing to risk. That said, most lenders treat scores of 740 and above as very good, and scores above 800 as excellent. Below 740, you will still get approved for mortgages, car loans, and credit cards, but you will pay higher interest rates.
Your score matters because it directly affects the cost of borrowing. A person with a 750 score might get a 30-year mortgage at 6.5 percent interest, while someone with a 650 score gets the same loan at 7.5 percent. Over 30 years, that one percentage point difference costs tens of thousands of dollars. Credit scores also affect whether you can rent an apartment, get a cell phone contract, or be hired for certain jobs.
The score you see when you check your own credit is often not the same score a lender sees. You may have access to a VantageScore or educational score, which use slightly different math than the FICO score that most lenders actually use. This is why checking your own score is useful for tracking progress, but not a may provide of what a lender will see.
Key Takeaways
- Scores of 740 and above are considered very good by most lenders, though some will approve loans at lower scores with higher interest rates.
- Each lender sets its own definition of "great," so a score that gets you approved for one product may not get you the best rate on another.
- The score you see for free online may not be the FICO score that lenders actually use, so it is useful for tracking but not for predicting exact approval odds.
- Moving from a 650 score to a 750 score can save you thousands of dollars in interest over the life of a loan.
How the major credit bureaus score differently
Equifax, Experian, and TransUnion each calculate your score using their own formula and their own data. You may have three different scores — one from each bureau — and they can vary by 50 points or more. This happens because not all creditors report to all three bureaus, and because the bureaus weight the same information differently.
When you apply for a loan, the lender typically pulls your score from one or more of these bureaus. A mortgage lender often pulls all three and uses the middle score. A credit card company might pull just one. This is why you should check your report from all three bureaus at least once a year — you can do this free at annualcreditreport.com, which is the official site run by the three bureaus together.
FICO scores versus other scores you see online
FICO is the score most lenders actually use. It ranges from 300 to 850 and is calculated by Fair Isaac Corporation. When a lender says "we pulled your credit," they are almost always pulling a FICO score, not something else.
The scores you see for free on credit card websites, banking apps, or credit monitoring sites are often VantageScores or educational scores. These use different math and can be 50 to 100 points higher or lower than your actual FICO score. They are useful for understanding the direction of your credit — whether it is improving or declining — but they do not tell you what a lender will see.
If you want to see your actual FICO score before you apply for credit, you can buy it directly from myfico.com. This costs money, but it is the same score lenders see. Some credit card companies also offer free FICO scores to their cardholders.
What lenders consider "great" for different types of credit
Mortgage lenders are usually the strictest. Most require a score of at least 620 to approve a loan, but they offer the best rates to borrowers with scores of 740 or higher. Some lenders that specialize in lower-score borrowers will go as low as 580, but the interest rate will be much higher.
Auto lenders are more flexible. You can get approved for a car loan with a score as low as 500 or 550, though again the interest rate will reflect the risk. A score of 700 or higher usually gets you a competitive rate on a car loan.
Credit card companies vary widely. Some offer premium cards only to people with scores above 750. Others will approve someone with a 650 score, but the credit limit will be lower and the interest rate higher. Store credit cards are often easier to get than bank credit cards at the same score level.
How your score breaks down and what affects it most
Your FICO score is built from five categories: payment history (35 percent), amounts owed (30 percent), length of credit history (15 percent), credit mix (10 percent), and new credit inquiries (10 percent). Payment history is the single biggest factor. A single late payment can drop your score by 100 points or more, depending on how late it was and how good your score was before.
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 $4,500 balance, you are using 90 percent of your limit. Lenders see this as risky. Keeping your balance below 30 percent of your limit — so $1,500 or less in this example — helps your score. Paying off the balance entirely each month is even better.
Length of credit history matters, but it works slowly. Closing old credit cards hurts your score because it shortens your average account age. Keeping old accounts open, even if you do not use them, helps. New credit inquiries have a small effect, but multiple inquiries in a short time can signal that you are desperate for credit and drop your score a few points.
How long it takes to build a great score from scratch
If you have no credit history, building to a score of 740 typically takes three to five years of on-time payments. The timeline depends on how you build credit. Using a secured credit card (where you deposit money upfront) and paying it off every month is one of the fastest routes. Becoming an authorized user on someone else's account can also help, though the boost depends on that account's history.
If you have damaged credit — late payments, collections, or bankruptcy — the recovery is slower. A late payment stays on your report for seven years, but its impact fades over time. A payment that was 30 days late two years ago hurts less than one from last month. Bankruptcy stays for seven to ten years depending on the type, but after three to four years of clean payment history, you can often get approved for credit again, just at higher rates.
Why your score matters less than you might think in some situations
Credit scores are not the only thing lenders look at. They also consider your income, employment history, debt-to-income ratio, and the size of your down payment. A person with a 700 score and a 20 percent down payment might get approved for a mortgage while someone with a 750 score and no down payment gets denied.
For rental housing, landlords often care more about eviction history and income than credit score. Some landlords do not check credit at all. Others use it as a tiebreaker when multiple people apply. Knowing what the specific landlord cares about — which you can sometimes learn by asking the property manager — matters more than obsessing over your exact score.
Frequently Asked Questions
Is 700 a good credit score?
A 700 score is good, but not great. Most lenders will approve you, but you will not get their best rates. You will pay more interest on a mortgage, car loan, or credit card than someone with a 750 score. If you are planning to borrow money soon, pushing your score above 740 could save you money.
How much does my score need to be to get a mortgage?
Most lenders require a minimum of 620, but you will get much better rates at 740 or higher. Some specialized lenders go as low as 580, but the interest rate will be significantly higher. Your down payment and income matter as much as your score.
Can I get a credit card with a 650 score?
Yes, many card issuers will approve you at 650, though you may get a lower credit limit and a higher interest rate than someone with a 750 score. Secured credit cards are easier to get at lower scores and can help you build toward a higher score over time.
Does checking my own credit score hurt it?
No. Checking your own score is a "soft inquiry" and does not affect your score at all. Only hard inquiries — when a lender pulls your credit because you applied for something — can lower your score slightly, and the effect is temporary.
How fast can I improve my credit score?
The fastest improvements come from paying down credit card balances. Lowering your credit utilization from 80 percent to 30 percent can raise your score 50 to 100 points in one or two months. Fixing errors on your credit report can also help quickly. On-time payments build score gradually over months and years.