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

The most common 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, though what they actually require depends on the type of loan and the lender's own rules. A score of 740 or higher usually qualifies you for better interest rates. Below 580, most traditional lenders will either deny you or charge significantly higher rates.

The exact threshold that matters to you depends on what you are trying to do. A mortgage lender may require 620 minimum but offer better terms at 740. A credit card issuer might approve you at 650 but reserve premium cards for 750+. An auto lender often has different standards than a personal loan lender. There is no single "good" score — only what a particular lender will accept and what rate they will offer.

Key Takeaways

  • FICO scores range from 300 to 850, and most lenders consider 670 or higher acceptable for standard borrowing.
  • Scores of 740 and above typically unlock better interest rates and terms across most types of credit.
  • Different lenders set different minimums: a mortgage lender may require 620, while a credit card issuer might want 700.
  • 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 score does not harm it, but hard inquiries from lenders do lower your score temporarily.

How lenders actually use credit scores

Lenders do not treat a credit score as a pass-or-fail gate. Instead, they use it as one factor among several. A score of 650 might get you approved for a personal loan at 12% interest, while the same lender offers 6% to someone with a 750 score. A mortgage lender might require 620 minimum but charge a higher rate or require a larger down payment at that threshold.

The score tells a lender how likely you are to repay based on your past behavior. It does not measure income, employment, or whether you can actually afford the loan. Two people with identical 700 scores might have very different financial situations — one might earn $40,000 a year and the other $150,000. Lenders use the score to sort risk, then use other information to make the final decision.

Where the 670 threshold comes from

The 670 mark is not arbitrary. FICO publishes data showing that people with scores below 670 have significantly higher rates of missed payments and defaults. Lenders use this historical data to set their own cutoffs. A bank offering mortgages might decide that 640 is acceptable for them; another might require 700. Credit card companies often have lower minimums than mortgage lenders because the amounts are smaller and the risk is different.

Your score can also vary depending on which scoring model is used. FICO has multiple versions (FICO 8, FICO 9, FICO 10T), and different industries use different ones. Mortgage lenders often use older FICO versions. Credit card companies might use newer ones. VantageScore is another model entirely, with a different range and calculation. A score that is "good" under FICO 8 might be categorized differently under VantageScore, though the underlying factors are similar.

What actually builds a good score

Your FICO score is built from five categories: payment history (35%), amounts owed relative to your limits (30%), length of credit history (15%), mix of credit types (10%), and new credit inquiries (10%). The largest factor is whether you pay on time. A single missed payment can lower your score by 100 points or more, depending on how recent it is and how high your score was before.

The second-largest factor is how much of your available credit you are using. If you have a $5,000 credit limit and carry a $4,500 balance, that hurts your score more than carrying $1,500. Paying down balances is one of the fastest ways to improve a score. The other factors — how long you have had credit, whether you have different types (credit cards, auto loans, mortgages), and how many new accounts you have opened recently — matter less individually but add up over time.

The difference between good, very good, and excellent

Most lenders divide the score range into bands. A score of 670–739 is typically considered "good" — you will be approved for most credit products, but not at the best rates. A score of 740–799 is "very good" — you may have access to for better terms and lower interest rates. A score of 800 and above is "excellent" — you get the best rates available and are approved quickly.

Below 670, the categories vary by lender, but generally: 580–669 is "fair" (approval possible but at higher rates), 500–579 is "poor" (approval difficult, rates much higher), and below 500 is "very poor" (most lenders will decline). These bands are not official — each lender sets their own — but they reflect how the credit market actually works.

How to check your score without damaging it

You can check your own credit score without any penalty. When you look at your own score, it is called a "soft inquiry" and does not lower your score. When a lender checks your score (a "hard inquiry"), it does lower your score by a few points, usually for about six months. Multiple hard inquiries in a short time can add up, so shopping around for a mortgage or auto loan in a narrow window (usually 14–45 days, depending on the scoring model) counts as a single inquiry.

You can get your FICO score free from your credit card issuer, your bank, or from websites that offer it at no cost. You are also may have access to to one free credit report per year from each of the three major credit bureaus (Equifax, Experian, TransUnion) through AnnualCreditReport.com. The report shows your payment history and account details but may not include your score — you often have to pay a small fee for the score itself, though many issuers provide it free.

Why your score might be lower than you expect

A score can drop for reasons that feel unfair. Paying off a loan entirely can lower your score slightly because you have less active credit mix. Closing an old credit card can lower your score because it reduces your total available credit and shortens your average account age. A hard inquiry from a lender you applied to will lower your score even if you are denied. These effects are temporary — usually a few months — but they are real.

Errors on your credit report also drag down your score. If a payment is reported late when you paid on time, or if an account appears twice, or if someone else's debt is listed under your name, your score suffers. You can dispute errors with the credit bureau for free by mail or online. The bureau has 30 days to investigate and must remove the error if it cannot verify it. Correcting errors is one of the few ways to improve your score quickly.

Frequently Asked Questions

Is 650 a good credit score?

A 650 score is below the 670 threshold most lenders use for "good," but it is not poor. You can still be approved for credit cards, personal loans, and auto loans, though usually at higher interest rates than someone with a 700+ score. Some mortgage lenders will work with 650, but you may face a larger down payment requirement or higher rate.

How much does a hard inquiry lower my score?

A single hard inquiry typically lowers your score by 5 to 10 points. The effect is temporary and usually fades within a few months. Multiple inquiries in a short time (like shopping for a mortgage) may count as one inquiry depending on the scoring model, so the damage is less than if they were spread out over months.

Can I get a mortgage with a 620 credit score?

Yes, but with conditions. FHA loans (backed by the Federal Housing Administration) allow scores as low as 580 with a larger down payment. Conventional mortgages typically require 620 minimum, though some lenders go lower. At 620, expect a higher interest rate and possibly a requirement to put down 10–15% instead of the standard 3–5%.

Does paying off debt immediately improve my score?

Paying down balances improves your score, but not instantly. The credit bureaus update your report monthly, so the improvement usually shows up 30 to 45 days after you pay. Paying off a loan entirely can cause a small temporary dip because you lose that active account, but the overall effect is positive over time.

What is the difference between FICO and VantageScore?

FICO and VantageScore are two different scoring models with different ranges and calculations. FICO (300–850) is used by most lenders. VantageScore (300–850 in newer versions) is less common but used by some credit card companies and lenders. A score that is "good" under one model might be different under the other, though both measure similar factors.