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

The most common credit scoring model in North America is the FICO score, which ranges from 300 to 850. Lenders generally treat scores of 670 and above as acceptable risk, though what matters most is how your score compares to other applicants for the same loan. A score of 750 or higher usually qualifies you for the best interest rates on mortgages, car loans, and credit cards. Below 670, you will pay higher rates or face rejection.

The other major model is VantageScore, which also runs 300 to 850 and uses similar thresholds. Some lenders, landlords, and insurance companies use VantageScore instead of FICO, so it is worth checking both if you are preparing to borrow or rent. Your two scores may differ by 50 points or more because they weight payment history, credit mix, and age of accounts slightly differently.

What "good" means also depends on what you are trying to do. A mortgage lender might approve you at 640 if you have a large down payment. A credit card issuer might reject you at 680 if you have recent late payments. Landlords vary widely — some will not rent to anyone below 700, others have no minimum. Always ask what score range a specific lender or landlord uses before you assume you will be turned down.

Key Takeaways

  • FICO scores of 670 to 739 are considered good; 740 and above is very good or excellent.
  • The same score can produce different outcomes depending on the lender, the type of loan, and your other financial details.
  • You can check your FICO score free once per year through AnnualCreditReport.com, which is the official government site.
  • VantageScore is a separate model used by some lenders and landlords, and your VantageScore may differ from your FICO score by 50 points or more.

How credit scores are built and what moves them

Payment history is the largest factor in both FICO and VantageScore — it accounts for about 35 percent of your score. A single late payment can drop your score by 100 points or more, depending on how late it was and how high your score was before. Payments that are 30 days late hurt less than those 90 days late. Payments that are current help, but they rebuild your score slowly — usually one to two points per month of on-time payments after a late mark.

Credit utilization — the amount of credit you are using compared to your total available credit — makes up about 30 percent of your score. If you have a credit card with a $5,000 limit and you carry a $4,500 balance, your utilization is 90 percent, which will lower your score. Keeping utilization below 30 percent is ideal. Paying down balances can raise your score within a month or two, making this one of the fastest ways to improve if you have the money to do it.

Age of accounts accounts for about 15 percent of your score. Older accounts help your score, which is why closing old credit cards can hurt even if you are not using them. Credit mix — having different types of credit like credit cards, car loans, and mortgages — makes up about 10 percent. New inquiries account for the remaining 10 percent. Each time you apply for credit, a hard inquiry appears on your report and drops your score by a few points. Multiple inquiries within a short time (like shopping for a mortgage) usually count as one inquiry.

The difference between good and excellent credit

A score of 670 to 739 is considered good. You will be approved for most loans and credit cards, though you may not get the lowest interest rates. A score of 740 to 799 is very good — lenders will offer you competitive rates and you will rarely be turned down. A score of 800 or higher is excellent, and you will receive the best rates available.

The jump from good to very good (around 740) is where most lenders draw a line for their best offers. A 30-year mortgage at 740 might carry a rate 0.5 to 1 percent lower than one at 680, which adds up to tens of thousands of dollars over the life of the loan. Credit card issuers often reserve their lowest-fee, highest-reward cards for scores above 750. If you are close to that threshold, paying down a credit card balance or waiting a few months for late payments to age can be worth the effort.

How to check your own credit 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 order all three at once through AnnualCreditReport.com, which is the official government site. The report itself is free, but it does not include your score; you have to pay for that separately, usually $10 to $20.

Many credit card issuers now offer free credit score monitoring as a cardholder benefit. If you have a credit card, log into your account online and look for a "credit score" or "credit monitoring" section. Some banks and credit unions also provide free scores to their customers. These free scores are usually VantageScore, not FICO, so they may differ from what a mortgage lender will see.

If you see a score that seems wrong, order your full credit report and look for errors — incorrect late payments, accounts you did not open, or balances that do not match what you owe. You can dispute errors for free by contacting the bureau in writing or through their online dispute tool. Correcting a genuine error can raise your score by 50 to 100 points.

Why lenders care about credit scores

A credit score is a prediction tool. It estimates the likelihood that you will repay a loan on time based on your past behavior with credit. Lenders use it to decide whether to lend to you and at what interest rate. A higher score means lower risk in their eyes, so they charge you less. A lower score means higher risk, so they charge more or decline you altogether.

Credit scores are not perfect — they do not account for job loss, medical emergency, or other life events that cause people to miss payments. They also do not measure income, savings, or assets. Two people with the same 700 score might have very different ability to repay a loan. But because scores are fast and cheap to calculate, lenders use them as a first filter before looking at the rest of your application.

What does not affect your credit score

Your income, employment history, and savings do not appear on your credit report and do not affect your score. Checking your own credit report or score does not lower it — only hard inquiries from lenders do. Paying off a loan early does not hurt your score, though it may lower your score slightly in the short term because you are closing an account. Debit card use, rent payments, and utility bills do not appear on your credit report unless you are late and the company reports it to a collection agency.

Soft inquiries — like when a company checks your credit to see if you are pre-approved for an offer — do not affect your score at all. You can ignore pre-approval offers without worry. Closing a credit card will lower your score because it reduces your available credit and ages your credit mix, but the damage is temporary and usually recovers within a few months.

Frequently Asked Questions

Is 650 a good credit score?

No. A score of 650 is considered fair or poor depending on the lender. Most mainstream lenders prefer 670 or higher. At 650, you may be approved for some credit products, but you will pay higher interest rates and may face rejection from mortgage lenders or landlords.

How long does it take to build a good credit score?

It depends on where you are starting. If you have no credit history, building to 670 usually takes one to two years of on-time payments and responsible credit use. If you have damage like late payments or collections, it can take three to seven years for those marks to stop hurting your score, though improvement starts within months of fixing the behavior.

Will paying off debt immediately raise my credit score?

Paying down credit card balances will raise your score within a month or two because it lowers your utilization ratio. Paying off a loan entirely may lower your score slightly in the short term because you are closing an account, but the long-term benefit of lower debt outweighs this temporary dip.

Can I get a mortgage with a 680 credit score?

Yes, but with conditions. Most conventional mortgages require 620 or higher, so 680 qualifies you. However, you will pay a higher interest rate than someone with a 740 score, and you may need a larger down payment or better debt-to-income ratio to offset the risk in the lender's eyes.

Do I have the same credit score with all three bureaus?

No. Equifax, Experian, and TransUnion may have different information about you, so your scores can differ by 50 points or more. Lenders may check one bureau or all three. If you are preparing to borrow, order your report from all three through AnnualCreditReport.com and look for errors on each one.