Credit scores fall into ranges, and where you land determines what interest rates and terms lenders will offer you
A credit score range is a band of numbers that describes your creditworthiness to lenders. The most common scoring model, FICO, runs from 300 to 850. Lenders divide this into ranges — typically poor, fair, good, very good, and excellent — and each range comes with different borrowing costs and approval odds. A score of 670 and a score of 750 are both in the "good" range on most lenders' scales, but the 750 will get you better rates on a mortgage or car loan.
The ranges themselves are not set by law or by a single authority. Different lenders use slightly different cutoffs, and different types of credit (mortgages, credit cards, auto loans) sometimes use different thresholds. What matters is understanding where your own score sits and what that means for the specific loan you are seeking.
Key Takeaways
- FICO scores run from 300 to 850, and most lenders treat 670 and above as "good" credit, though the exact cutoffs vary by lender and loan type.
- Scores above 740 typically unlock the best interest rates on mortgages and auto loans, while scores below 620 often result in higher rates or outright rejection.
- Your score is calculated from payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%).
- You can request your free credit report once per year from each of the three major bureaus (Equifax, Experian, TransUnion) at annualcreditreport.com.
How lenders interpret score ranges
Most mainstream lenders use these approximate ranges, though the exact numbers vary:
| Score Range | What It Means | Typical Outcome |
|---|---|---|
| 300–579 | Poor | Rejection or very high rates; secured credit cards may be an option |
| 580–669 | Fair | Approval possible but with higher interest rates and stricter terms |
| 670–739 | Good | Approval likely; rates are reasonable but not the best available |
| 740–799 | Very Good | Strong approval odds; competitive interest rates |
| 800–850 | Excellent | Best rates and terms; approval nearly certain |
The difference between a 680 score and a 740 score can mean hundreds of dollars per year on a mortgage or car loan. A borrower with a 740 FICO might pay 0.5% to 1% less in interest than one with a 680, which compounds significantly over a 30-year mortgage.
Mortgage lenders often have their own internal ranges. Some will lend to borrowers at 620; others require 640 or 660 as a minimum. Credit card issuers similarly set their own thresholds. The ranges above represent what most mainstream lenders use, but always check with the specific lender you are working with.
What makes up your score
Your FICO score is built from five categories of information on your credit report. Understanding what drives the score helps explain why small changes sometimes move it significantly.
Payment history (35%) is the largest factor. A single late payment can drop your score by 100 points or more, depending on how recent it is and how late it was. Payments 30 days late hurt more than payments 60 days late in terms of the initial impact, but the damage compounds over time. Accounts in collections or charge-offs stay on your report for seven years.
Amounts owed (30%) looks at how much credit you are using compared to your limits. If you have a $5,000 credit limit and carry a $4,500 balance, you are using 90% of your available credit, which signals risk. Dropping that to $1,500 (30% utilization) can raise your score by 20 to 50 points. This applies to all your accounts combined, not just one card.
Length of credit history (15%) rewards you for keeping accounts open over time. Closing old accounts can hurt this factor. The oldest account on your report and the average age of all your accounts both matter.
Credit mix (10%) means having different types of credit — credit cards, auto loans, mortgages, student loans. A mix shows you can manage different kinds of debt responsibly.
New credit inquiries (10%) tracks how often you have applied for new credit recently. Multiple applications in a short time signal financial stress and lower your score slightly. Hard inquiries (when a lender checks your credit) hurt more than soft inquiries (when you check your own credit).
Why the same score gets different treatment
Two people with identical 700 FICO scores may receive different loan offers because lenders use additional information beyond the score itself. They look at your debt-to-income ratio (how much you owe compared to what you earn), your employment history, the size of your down payment, and the type of property or asset you are financing.
Mortgage lenders are especially thorough. A 700 score helps you get in the door, but they will also verify your income, check your employment history, and review your bank statements. A borrower with a 700 score and a 50% down payment will get better terms than one with a 700 score and no down payment.
Credit card issuers, by contrast, rely more heavily on the score alone, though they also consider your income and existing credit card balances. Auto lenders fall somewhere in between, weighing the score heavily but also looking at the loan-to-value ratio (how much you are borrowing compared to the car's worth).
How to find out your own score
You are may have access to to one free credit report per year from each of the three major credit bureaus: Equifax, Experian, and TransUnion. You can request all three at once at annualcreditreport.com, which is the official site run by the bureaus themselves. This report shows your credit history but does not include your FICO score.
To see your actual FICO score, you have several options. Many credit card issuers now show your score for free in your online account or mobile app — check your statements or log in to see if yours does. Some banks offer free score monitoring to customers. You can also purchase your FICO score directly from myfico.com for a small fee, usually around $20 for a single score or $40 for all three bureau scores.
Free score services like Credit Karma and Credit Sesame show you a score, but it is usually a VantageScore, not a FICO score. VantageScore uses a different calculation and lenders use it less often. It is still useful for tracking trends, but if you are preparing for a mortgage or major loan, get your actual FICO score from one of the sources above.
Improving your score within each range
If your score is 650 and you want to reach 700, the fastest moves are usually to pay down credit card balances (especially high ones) and to make sure all your payments are on time going forward. Paying down balances can raise your score by 20 to 100 points within a month or two because it lowers your utilization ratio immediately.
If your score is already 750, reaching 800 is slower. You are already in the "very good" range and getting the best rates most lenders offer. Further improvement comes mainly from time — letting old negative marks age off your report and building a longer payment history. Closing old accounts or missing a payment will hurt you more at this level than it would at 650.
Errors on your credit report can drag down your score unfairly. If you spot a late payment you know you made on time, an account that is not yours, or a balance that is wrong, you can dispute it with the bureau. File your dispute at equifax.com, experian.com, or transunion.com. The bureau has 30 days to investigate and must correct or remove inaccurate information.
Score ranges for specific types of credit
Some lenders use slightly different ranges depending on what you are borrowing for. Mortgage lenders often treat 620 as a minimum but may charge higher rates below 640. FHA loans (backed by the Federal Housing Administration) sometimes accept scores as low as 580, though rates are higher. Conventional mortgages typically want 620 or above.
Auto lenders are more flexible on score but charge significantly higher rates for lower scores. A borrower with a 750 score might get 3% on a car loan, while one with a 620 might pay 8% or more. Over a five-year loan, that difference adds thousands of dollars to the cost of the car.
Credit card issuers vary widely. Premium cards (those with high rewards or travel benefits) typically require 750 or above. Standard cards may accept 650 or higher. Secured credit cards, which require a cash deposit, are available to people with scores below 600 and are often used to rebuild credit.
Frequently Asked Questions
Is 700 a good credit score?
Yes. A 700 FICO score puts you in the "good" range and means most lenders will approve you for credit cards, auto loans, and mortgages. You will not get the absolute best interest rates — those go to scores above 740 — but your rates will be competitive and reasonable.
How much does a credit score matter compared to income?
For credit cards and personal loans, your score matters most. For mortgages and auto loans, both matter equally. A lender will not approve a mortgage just because you have a high income if your score is 580, and they will not approve it just because your score is 750 if you have no income to verify. Expect them to weigh both heavily.
Can I get a mortgage with a 620 credit score?
Yes, but with higher interest rates and stricter terms. FHA loans sometimes accept 580 and above; conventional mortgages usually require 620 or higher. You will likely need a larger down payment (10% or more) and will pay 0.5% to 1.5% more in interest than someone with a 740 score.
How long does it take to raise my credit score?
Paying down balances can raise your score by 20 to 100 points within 30 to 60 days. Removing a late payment from your report takes longer — it stays for seven years but hurts less as it ages. Building a longer payment history takes months to years. There is no shortcut; the main drivers are time and consistent on-time payments.
Does checking my own credit score hurt it?
No. When you check your own score or request your free credit report, it is a soft inquiry and does not affect your score. Only hard inquiries — when a lender checks your credit because you applied for a loan — count against you, and even then the impact is small (usually 5 to 10 points per inquiry).