A good credit score is usually 670 or higher on the standard 300–850 scale

Most lenders use one of three credit scoring models — FICO Score, VantageScore, or a bank's own internal score — and they all rank scores into bands. On the FICO scale, which is what most mortgage lenders and credit card companies use, a score of 670 to 739 is considered "good," 740 to 799 is "very good," and 800 and above is "excellent." Below 670, lenders typically see more risk, though what that means for you depends on what you are trying to borrow and which lender you approach.

The score itself is a three-digit number that reflects your payment history, how much debt you carry relative to your credit limits, the length of your credit history, the mix of credit types you use, and recent credit inquiries. It is not a measure of your income or your worth as a person — it is a prediction, based on past behavior, of whether you will pay back money you borrow.

What counts as "good" also depends on context. A score of 680 might get you a car loan but not a mortgage. A score of 750 might get you a mortgage but at a higher interest rate than someone with a 780. Different lenders set different thresholds, and those thresholds shift based on how much money they have to lend and how cautious they are feeling.

Key Takeaways

  • A FICO score of 670 to 739 is considered good; 740 to 799 is very good; 800 and above is excellent.
  • Your score is built from payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and recent inquiries (10%).
  • The same score can mean different things depending on the type of loan you want and the lender you approach.
  • You can check your score for free once a year from each of the three major credit bureaus through AnnualCreditReport.com.

How credit scores are calculated

Your FICO score is built from five categories, and they do not carry equal weight. Payment history — whether you pay on time — accounts for 35% of your score. The next biggest factor is amounts owed, which is 30%; this includes how much of your available credit you are using and how much you still owe on installment loans. Length of credit history makes up 15%, credit mix (having both revolving credit like credit cards and installment credit like car loans) is 10%, and recent inquiries or new accounts is the final 10%.

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. A payment 30 days late hurts less than one 90 days late. A bankruptcy or foreclosure can stay on your report for seven to ten years and will depress your score for years, though its impact fades over time as you build new positive history.

VantageScore, which some lenders and credit card companies use, weighs the factors differently and can score people with thinner credit histories. The scale is the same (300–850), but a VantageScore of 661 to 780 is considered "good." If you are checking your score through a credit card company or a free service like Credit Karma, you are usually seeing a VantageScore, not a FICO score.

Why the same score means different things to different lenders

A lender does not just look at your three-digit score. They also look at your credit report — the detailed record of your accounts, payment history, and inquiries — and they apply their own rules on top of that. A mortgage lender might require a minimum score of 620 but also require that you have no late payments in the past two years and that your debt-to-income ratio is below 43%. A credit card company might approve anyone with a score above 650 but offer better terms to people above 750.

Lenders also change their standards based on market conditions. During economic downturns, when lenders are nervous about defaults, they raise their minimum scores and tighten other requirements. During booms, when money is cheap and plentiful, they lower their minimums and loosen their rules. This is why your score might be good enough for a car loan one year but not the next, even if your score has not changed.

Some lenders also use alternative data — rent payment history, utility payments, or even checking account activity — alongside your credit score. If you have a thin credit file or a damaged score, these lenders might still work with you, though usually at a higher interest rate.

The difference between FICO and VantageScore

FICO Score is older and more widely used by lenders, especially for mortgages, auto loans, and credit cards. It has been around since 1989 and most lenders have built their approval systems around it. VantageScore was created in 2006 by the three major credit bureaus — Equifax, Experian, and TransUnion — and is used more often by credit monitoring services and some credit card companies.

The two models weight factors differently. VantageScore puts more emphasis on recent behavior and less on the age of your accounts, which means it can score people with shorter credit histories. FICO is stricter about payment history and can penalize you more heavily for recent late payments. If you check your score through a free app, you are almost certainly seeing a VantageScore. If you are applying for a mortgage or a car loan, the lender is almost certainly using FICO.

Your actual FICO score also comes in different versions. FICO 8 is the most common, but lenders sometimes use FICO 9 or industry-specific versions like FICO Auto Score or FICO Bankcard Score. These versions can score the same person differently. This is why you might see one score on a free service and a different score when a lender pulls your report.

How to check your credit score

You are may have access to to one free credit report per year from each of the three major bureaus — Equifax, Experian, and TransUnion. You can get all three at once through AnnualCreditReport.com, which is the official site run by the bureaus themselves. The report shows your accounts, payment history, and inquiries, but it does not include your score.

To see your actual score, you have several options. Many credit card companies show your FICO or VantageScore for free in your online account or app. Free services like Credit Karma, NerdWallet, and Discover show your VantageScore at no cost. If you want your actual FICO score, you can buy it directly from myfico.com for around $20, or you can sometimes get it free through your bank or credit card company.

Checking your own score does not hurt it. Only hard inquiries — when a lender pulls your report because you applied for credit — can lower your score, and even then only by a few points. Soft inquiries, which happen when you check your own report or when a company pre-screens you for an offer, do not affect your score at all.

What to do if your score is below 670

If your score is below 670, you can still borrow money, but you will likely pay higher interest rates and face stricter terms. A mortgage lender might require a larger down payment or charge you a higher interest rate. A credit card company might offer you a card with a lower credit limit or a higher annual percentage rate. A car loan will cost you more per month.

The fastest way to improve your score is to bring any past-due accounts current and keep all future payments on time. Payment history is 35% of your score, so even one on-time payment each month will start to rebuild it. Paying down credit card balances also helps quickly, since amounts owed is 30% of your score. If you have a balance of $5,000 on a card with a $10,000 limit, you are using 50% of your available credit; bringing that down to $2,500 can boost your score by 50 points or more.

Negative items like late payments, collections, and foreclosures fade over time. A late payment stops affecting your score after seven years. A bankruptcy stops affecting it after seven to ten years, depending on the type. You cannot remove accurate negative information, but you can dispute inaccurate information on your report by contacting the bureau directly.

How good credit affects borrowing costs

The difference between a good score and a poor score can cost you tens of thousands of dollars over the life of a loan. On a 30-year mortgage for $300,000, the difference between a 620 score (around 7% interest) and a 760 score (around 5.5% interest) is roughly $200 per month, or $72,000 total. On a five-year car loan for $25,000, the difference between a 620 score (around 9% interest) and a 760 score (around 4% interest) is roughly $100 per month, or $6,000 total.

A good score also affects whether you can borrow at all. Some lenders will not lend to anyone below a certain score, period. Others will lend but only with a co-signer or a larger down payment. A very good or excellent score opens doors that a merely good score does not.

Frequently Asked Questions

Is 700 a good credit score?

Yes. A score of 700 falls into the "good" range on the FICO scale (670–739). You should be able to get approved for most types of credit, though you may not get the best interest rates. A score above 740 would put you in "very good" territory and typically qualifies you for better terms.

Does checking my credit score lower it?

No. Checking your own score is a soft inquiry and does not affect it. Only hard inquiries — when a lender pulls your report because you applied for a loan or credit card — can lower your score, and usually only by a few points.

How long does it take to improve a credit score?

It depends on what is hurting your score. Paying down credit card balances can improve your score within one or two billing cycles. Bringing a past-due account current can help within a month or two. Negative items like late payments take years to stop affecting your score — a late payment stops counting after seven years.

Can I have different credit scores?

Yes. You may have a different FICO score from each of the three bureaus if your credit reports differ slightly. You also have a separate VantageScore from each bureau. Lenders may use different versions of FICO (like FICO 8 or FICO 9) or industry-specific scores (like FICO Auto Score), so the score a lender sees may differ from the score you see on a free service.

What is the highest credit score?

The highest FICO score is 850. The highest VantageScore is also 850. Scores above 800 are considered excellent, but there is no practical difference between an 820 and an 850 — both will get you the best interest rates and terms available.