Credit scores run from 300 to 850, and where you fall in that range determines what interest rates lenders will offer you

Your credit score is a three-digit number that summarizes your borrowing history. The most common scoring model, FICO, ranges from 300 to 850. The higher your score, the lower the risk you appear to lenders, and the better rates you will receive on mortgages, car loans, credit cards, and other borrowed money. A score of 300 is the worst possible; 850 is perfect. Most people fall somewhere between 600 and 750.

The score itself does not determine whether you can borrow. Instead, each lender sets its own cutoff. A bank might require 620 to approve a mortgage; a credit card company might require 650. Some lenders work with scores below 600, but charge much higher interest rates. Understanding where your score sits helps you know which lenders to approach and what rate you might expect.

Key Takeaways

  • FICO scores range from 300 to 850, with higher scores indicating lower risk to lenders.
  • Most lenders set their own minimum score requirement, typically between 600 and 750 depending on the loan type.
  • Your score is calculated from five factors: payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%).
  • You can check your score for free once per year from each of the three major credit bureaus through AnnualCreditReport.com.

How the 300 to 850 range breaks down by lender type

Different lenders use different thresholds. A mortgage lender typically wants to see 620 or higher, though 740 and above gets you the best rates. Auto lenders often work with scores as low as 580, but charge significantly higher interest. Credit card issuers vary widely—some require 700, others will approve at 650 or lower. Unsecured personal loans usually require 650 to 700.

Below 580, you enter the territory of subprime lending, where interest rates are substantially higher and terms are stricter. Between 580 and 669 is often called "fair" credit. Between 670 and 739 is "good." Between 740 and 799 is "very good." Above 800 is "excellent." These labels are informal—lenders do not use them uniformly—but they give you a sense of where you stand relative to other borrowers.

What makes up your score: the five factors

FICO calculates your score from five categories. Payment history accounts for 35 percent of your score and is the single largest factor. This includes whether you pay on time, how many times you have been late, and how late you were. A single missed payment can drop your score by 100 points or more, depending on how recent it is.

Amounts owed makes up 30 percent. This is not just your total debt—it is how much you owe relative to your credit limits. If you have a credit card with a $5,000 limit and you owe $4,500, you are using 90 percent of that limit, which hurts your score. Using less than 30 percent of your available credit is ideal. Length of credit history accounts for 15 percent and rewards you for having accounts open for a long time. Closing old accounts can lower this factor.

Credit mix is 10 percent and means having different types of credit—credit cards, car loans, mortgages, student loans. New credit inquiries make up the final 10 percent. When you apply for new credit, the lender pulls your report, which is called a hard inquiry and temporarily lowers your score. Multiple inquiries in a short time can signal financial desperation to lenders.

Why you might have different scores from different bureaus

You have three main credit scores, one from each bureau: Equifax, Experian, and TransUnion. Each bureau collects information independently, and lenders report to them at different times. One bureau might have an old late payment that another bureau has not yet received. One might be missing an account you recently opened. These differences mean your score from Equifax might be 680 while Experian shows 710.

Additionally, different scoring models exist beyond FICO. VantageScore is another common model that ranges from 300 to 850 but weights factors differently. Some lenders use industry-specific scores—mortgage lenders use one version, auto lenders use another. The score you see on a free credit monitoring app might not be the score a lender sees when you apply. This is why it is useful to check your actual FICO score from the bureaus themselves, not just a free app version.

How to check your credit score for free

Federal law entitles you to one free credit report per year from each of the three bureaus. Go to AnnualCreditReport.com, which is the official site run by the three bureaus. You can request your report from all three at once or stagger them throughout the year. The report itself is free; it shows your payment history and account information but does not include your numerical score.

To get your actual FICO score for free, you have a few options. Many credit card issuers now provide free FICO scores to cardholders—check your online account or call the number on the back of your card. Some banks offer free scores to customers. Websites like Credit Karma and NerdWallet offer free scores, though these are usually VantageScore versions, not FICO. If you need your official FICO score, you can purchase it directly from myfico.com for a small fee, usually around $20.

What happens to your score when you miss a payment or default

A single late payment stays on your credit report for seven years from the date it was reported. If you are 30 days late, the damage is moderate. At 60 days late, the damage is severe. At 90 days or more, lenders consider you in default, and the impact is substantial. A late payment can drop your score by 100 to 150 points depending on how high your score was before and how recent the late payment is.

The impact lessens over time. A late payment from five years ago hurts less than one from five months ago. If you have missed a payment, the best action is to bring the account current as soon as you can. After that, focus on making all future payments on time. Your score will gradually recover, though the late payment will remain visible on your report until seven years have passed.

How to improve your score if it is low

If your score is below 620, the fastest improvements come from fixing payment history. Make every payment on time going forward—even one on-time payment per month starts to rebuild trust. If you have accounts in collections, consider paying them off; the payment does not remove the collection from your report, but it shows lenders you are taking action.

Second, lower your credit utilization. If you have high balances on credit cards, paying them down improves your score within weeks. You do not have to pay off the entire balance—even reducing utilization from 80 percent to 50 percent helps. Third, do not close old credit cards after you pay them off. Keeping them open preserves your length of credit history and your available credit, both of which help your score. Finally, avoid applying for multiple new accounts in a short time, as each application triggers a hard inquiry.

Frequently Asked Questions

What is a good credit score to buy a house?

Most mortgage lenders require a minimum of 620, but you will get better interest rates at 740 and above. FHA loans sometimes accept scores as low as 580. The difference in interest rate between a 620 score and a 760 score can amount to tens of thousands of dollars over the life of a 30-year mortgage, so improving your score before applying is worth the effort.

Does checking your own credit score hurt it?

No. Checking your own credit report or score is a soft inquiry and does not lower your score. Only hard inquiries—when a lender pulls your report because you applied for credit—affect your score. You can check your score as often as you want without penalty.

How long does it take to improve a credit score?

Significant improvements typically take three to six months of on-time payments and lower credit card balances. A single late payment can drop your score 100 points overnight, but rebuilding takes longer. The older the negative information, the less it matters, so a late payment from two years ago hurts less than one from two months ago.

Can I have a credit score if I have never borrowed money?

No. You need a credit history to have a score. If you have never had a credit card, loan, or other account reported to the bureaus, you have no score. To build one, you can open a secured credit card, become an authorized user on someone else's account, or take out a small loan. After six months of activity, you should have a measurable score.