What Is a Good Credit Score? (2026 Ranges Explained)

Quick Answer: What Is a Good Credit Score?

A good credit score is 670 to 739 on the FICO scale, which ranges from 300 to 850. This puts you solidly in the middle of the scoring spectrum and qualifies you for competitive interest rates on most types of credit. According to Experian data from late 2025, the average FICO score in the United States is 715, which falls squarely in the "Good" range. Approximately 21 percent of Americans have scores in this range, making it the second most common category after "Very Good."

However, "good" is not the same as "best." Borrowers with Very Good (740 to 799) or Exceptional (800 to 850) scores receive the lowest interest rates and best terms available. If your score is in the Good range, you are well-positioned for most financial products, but there is still meaningful money to be saved by pushing your score higher.

Complete FICO Score Range Table

The FICO scoring model divides credit scores into five distinct categories. Each range carries different implications for your ability to borrow money and the cost of that borrowing. Here is the full breakdown:

As you can see, the difference between a Poor and Exceptional score can mean paying double or triple the interest rate on the same loan amount. On a 30-year mortgage, this can translate to hundreds of thousands of dollars in additional interest payments over the life of the loan. Use our mortgage calculator to see exactly how different interest rates affect your monthly payment and total borrowing costs.

What Each Credit Score Range Qualifies You For

Understanding what doors each score range opens — or closes — helps you set realistic expectations and target the right score for your financial goals.

Exceptional (800 to 850)

Borrowers in this range receive the absolute best terms available. You will qualify for the lowest interest rates on mortgages, auto loans, and personal loans. Credit card issuers will offer you their premium rewards cards with the highest cash back percentages and sign-up bonuses. Insurance companies in many states will give you their lowest premiums. Landlords will approve your rental applications without hesitation, often waiving or reducing security deposit requirements. Approximately 23 percent of Americans have scores in this range.

Very Good (740 to 799)

This range qualifies you for nearly all of the same benefits as Exceptional, with only slightly higher interest rates. Most lenders consider 740 to be the threshold for their best advertised rates on mortgages and auto loans. The practical difference between a 740 and an 800 score is minimal for most lending decisions. About 26 percent of Americans fall in this range, making it the most populated category.

Good (670 to 739)

A Good score qualifies you for most conventional financial products. You will be approved for standard credit cards, auto loans, and mortgages, though not at the lowest available rates. The APR difference between Good and Very Good may add 0.5 to 1.5 percentage points to your interest rate, which on a large loan like a mortgage can add up to significant money over time. Roughly 21 percent of Americans have scores in this range.

Fair (580 to 669)

Borrowers in the Fair range are considered subprime. You can still get approved for many types of credit, but at significantly higher interest rates. FHA mortgages are available at 580 and above with 3.5 percent down, and some auto lenders specialize in this range. However, premium credit cards and the best loan rates will be out of reach. Credit card options will be more limited, often with lower credit limits and higher fees. About 17 percent of Americans have Fair scores.

Poor (300 to 579)

A Poor score makes borrowing difficult and expensive. Conventional mortgages are generally unavailable, and FHA loans require 10 percent down in the 500 to 579 range. Auto loans carry very high interest rates, often 15 percent or more. Credit card options are limited to secured cards that require a cash deposit. Many landlords will deny rental applications at this score level, and you may need a cosigner for utilities. Approximately 13 percent of Americans have scores in this range.

How Credit Scores Are Calculated: The Five Factors

Your FICO score is calculated from five categories of information in your credit report. Understanding these factors is essential for improving your score, because each factor carries a different weight in the calculation.

Payment History (35 percent)

Payment history is the single most important factor in your credit score, accounting for more than one-third of the total. This factor tracks whether you have paid your credit accounts on time. Late payments, collections, bankruptcies, and other negative marks all damage this component. A single 30-day late payment can drop a good score by 60 to 110 points, and the negative mark stays on your report for seven years. The recency, frequency, and severity of late payments all matter — a 90-day late payment hurts more than a 30-day late payment, and a recent late payment hurts more than one from five years ago.

Amounts Owed / Credit Utilization (30 percent)

The second most important factor is how much of your available credit you are using, known as your credit utilization ratio. This is calculated by dividing your total credit card balances by your total credit limits. For example, if you have a total credit limit of 10,000 and your balances total 3,000, your utilization is 30 percent. Experts recommend keeping utilization below 30 percent, and below 10 percent for the best scores. This factor considers both your overall utilization and the utilization on individual cards.

Length of Credit History (15 percent)

This factor considers the age of your oldest account, the age of your newest account, and the average age of all your accounts. A longer credit history generally produces a higher score because it gives lenders more data to assess your creditworthiness. This is why financial advisors recommend keeping old credit card accounts open even if you no longer use them — closing your oldest account can reduce your average account age and lower your score. The ideal average account age for the highest scores is seven years or more.

New Credit / Hard Inquiries (10 percent)

Each time you apply for new credit, the lender performs a hard inquiry on your credit report. Each hard inquiry can temporarily reduce your score by 5 to 10 points and remains on your report for two years, though its scoring impact diminishes after about 12 months. Opening several new accounts in a short period signals higher risk to lenders. However, FICO scoring models recognize rate-shopping behavior — multiple inquiries for auto loans, mortgages, or student loans within a 14 to 45 day window are typically counted as a single inquiry.

Credit Mix (10 percent)

Having a diverse mix of credit types — such as credit cards, installment loans, a mortgage, and auto loans — can positively affect your score. This factor demonstrates your ability to manage different types of credit responsibly. However, credit mix is the least important factor, and you should never take on debt you do not need just to diversify your credit mix. The improvement from adding a new type of credit is modest compared to the other factors.

The Real Cost of a Low Credit Score

To understand why your credit score matters so much, consider the concrete financial impact across different types of borrowing. The following table illustrates how much more you pay with a lower credit score on common loan types:

Over a lifetime of borrowing, the difference between an Exceptional and Fair credit score can cost well over 200,000 in additional interest payments. This makes credit score improvement one of the highest-return financial activities you can undertake. To see how your specific loan scenarios would play out, try our auto loan calculator or our credit card payoff calculator.

How to Check Your Credit Score for Free

You have several options for checking your credit score without paying anything or hurting your score:

• AnnualCreditReport.com: The only federally authorized source for free credit reports from all three bureaus (Equifax, Experian, and TransUnion). You can access your reports weekly at no cost. Note that this provides your credit report (the detailed history) but not necessarily your numeric score.
• Credit card issuers: Most major credit card companies now provide free FICO score access to their cardholders, including Discover, Capital One, Chase, American Express, Bank of America, and Citi. Check your online account or mobile app for a section labeled "Credit Score" or "FICO Score."
• Free scoring services: Credit Karma, Credit Sesame, and NerdWallet all provide free credit scores, though these are typically VantageScore 3.0 rather than FICO. VantageScore and FICO scores use similar but not identical scoring models, so your number may differ by 20 to 40 points between the two.
• Banking apps: Many banks, including Wells Fargo, U.S. Bank, and Ally, include free credit scores in their mobile apps even for checking account customers who do not have credit cards with the bank.

It is a good practice to check your credit score at least once per month and to review your full credit report from all three bureaus at least once per year. Look for errors such as accounts you do not recognize, incorrect balances, or inaccurate payment histories. An estimated one in five consumers has an error on at least one of their credit reports, and disputing errors can sometimes produce a quick score improvement.

10 Proven Strategies to Improve Your Credit Score Fast

Whether your score is Fair and you want to reach Good, or your score is Good and you want to push into Very Good territory, these strategies are ordered by potential impact:

1. Pay down credit card balances aggressively. Reducing your credit utilization is the fastest way to improve your score because utilization is recalculated every month when your issuer reports to the bureaus. Paying a card down from 80 percent utilization to 20 percent can improve your score by 50 to 100 points within one to two billing cycles.
2. Set up autopay for all accounts. Since payment history is the most heavily weighted factor, ensuring you never miss a payment is critical. Set up automatic minimum payments on every account as a safety net, then make additional payments manually when you can afford to pay more.
3. Request a credit limit increase. If you have a good payment history with your credit card issuer, request a higher credit limit. This immediately lowers your utilization ratio without requiring you to pay down any balance. Many issuers allow you to request increases through their app or website without a hard inquiry.
4. Dispute errors on your credit reports. Pull your reports from all three bureaus and look for inaccuracies. Common errors include accounts that are not yours, incorrect late payment records, duplicate accounts, and wrong balances. You can file disputes online directly with each bureau, and they are required by law to investigate within 30 days.
5. Become an authorized user. Ask a family member or trusted friend with a long history of on-time payments and low utilization to add you as an authorized user on one of their credit cards. The positive history from that account will appear on your credit report, potentially boosting your score significantly. You do not even need to use or possess the physical card.
6. Keep old accounts open. Even if you no longer use a credit card, keep the account open to maintain your length of credit history and total available credit. Closing an old account reduces your average account age and total credit limit, both of which can lower your score.
7. Limit new credit applications. Each hard inquiry can ding your score by 5 to 10 points. If you are trying to improve your score, avoid applying for new credit cards, store cards, or other loans unless absolutely necessary. Space out any necessary applications by at least six months.
8. Use a secured credit card strategically. If your score is in the Poor or low Fair range, a secured credit card is one of the best rebuilding tools. Deposit 200 to 500, use the card for small monthly purchases, and pay the balance in full each month. After 6 to 12 months of responsible use, many issuers will upgrade you to an unsecured card and return your deposit.
9. Diversify your credit mix carefully. If you only have credit cards, adding an installment loan (such as a credit-builder loan from a credit union) can improve your credit mix. Credit-builder loans hold the loan amount in a savings account while you make payments, then release the funds to you when the loan is paid off. They are specifically designed to help build credit history.
10. Report rent and utility payments. Services like Experian Boost, eCredable, and Rental Kharma can add your on-time rent, utility, and streaming service payments to your credit report. Experian Boost has reportedly increased scores by an average of 13 points for users who had previously "thin" credit files.

Credit Score Myths Debunked

Misinformation about credit scores is rampant. Here are some of the most common myths and the truth behind them:

• Myth: Carrying a balance helps your score. Truth: You do not need to carry a balance or pay interest to build credit. Paying your statement balance in full every month is the best strategy — it builds positive payment history while avoiding interest charges entirely.
• Myth: Closing a credit card improves your score. Truth: Closing a credit card usually hurts your score because it reduces your total available credit (increasing utilization) and can reduce your average account age. Only close a card if the annual fee is not worth the benefits.
• Myth: Income affects your credit score. Truth: Your income is not a factor in your credit score calculation. A person earning 30,000 per year can have an 850 score if they manage credit responsibly, while someone earning 300,000 per year can have a 500 score if they miss payments and max out cards.
• Myth: Debit cards build credit. Truth: Debit card usage is not reported to credit bureaus and has zero impact on your credit score. Only credit accounts — credit cards, loans, and lines of credit — contribute to your credit history.
• Myth: You only have one credit score. Truth: You have dozens of credit scores. FICO alone produces multiple versions of its score (FICO 8, FICO 9, FICO 10, and industry-specific scores for auto lending and mortgages), and each of the three bureaus may have slightly different data. It is normal for your scores to vary by 20 to 40 points across different models and bureaus.

Credit Score Distribution in the United States (2025 to 2026)

Understanding where your score falls relative to the general population can provide useful context. The following table shows the approximate distribution of FICO scores among U.S. adults based on Experian data:

If your score is 715 (the national average), you are at or above approximately 50 percent of all U.S. consumers. If your score is 740 or above, you are in the top 49 percent. And if you have achieved an 800 or higher, you are in the top 23 percent of credit users in the country.

How Different Life Events Affect Your Credit Score

Certain life events can have dramatic impacts on your credit score. Understanding these in advance helps you prepare and minimize damage.

• Buying a home: The mortgage application process involves a hard inquiry (minus 5 to 10 points) and opening a large new account (temporary dip of 15 to 40 points). However, over time, a mortgage with consistent payments will strengthen your credit profile significantly.
• Getting married: Marriage itself does not affect your credit score — scores remain individual. However, joint accounts opened after marriage will appear on both spouses' credit reports, and one partner's financial behavior can now affect the other's score through those shared accounts.
• Divorce: Divorce can devastate credit scores if joint accounts are not handled properly. Missed payments on joint accounts during divorce proceedings affect both parties. Close or refinance joint accounts as soon as possible during a divorce.
• Job loss: Losing your job does not directly affect your score (employment is not a scoring factor), but the financial strain of unemployment often leads to missed payments and increased credit card usage, both of which damage your score. If you anticipate difficulty making payments, contact your creditors proactively — many offer hardship programs.
• Medical debt: As of 2023, the three major credit bureaus no longer include medical debt under 500 on credit reports, and paid medical collections are removed immediately. This was a significant change that helped millions of Americans with medical debt improve their credit scores.

Frequently Asked Questions