What is a good credit score? The ranges explained
Where the cutoffs actually are, what each range unlocks, and how to move up one.
By The SmartMoney Tools Editorial TeamLast reviewed
Credit scores run from 300 to 850, but the number itself matters less than the range it falls into — because lenders price loans and approvals in bands, not by the exact digit. Here is where the cutoffs are, what each tier gets you, and how to climb to the next one.
The FICO score ranges
| Range | Rating | What it generally means |
|---|---|---|
| 800–850 | Exceptional | Best rates and terms available; easy approvals |
| 740–799 | Very good | Above-average rates; approved for most credit |
| 670–739 | Good | Near the average; generally approved at fair rates |
| 580–669 | Fair | Below average; approvals with higher rates and deposits |
| 300–579 | Poor | Hard to get unsecured credit; high rates when approved |
The practical dividing line is around 670: at or above it, you are seen as a solid borrower. But the best pricing really opens up at 740+, and there is little extra benefit above about 800 — so you do not need a perfect score, just a high enough one.
What a higher score is actually worth
This is not an abstract bragging number — it is money. On a mortgage, the rate gap between "fair" and "very good" credit can be more than a full percentage point, which, as our 1%-on-your-mortgage guide shows, can mean tens of thousands of dollars over the loan. The same pattern holds on auto loans, credit cards, and even insurance premiums in many states. Moving up one tier can pay for itself many times over.
How to move up a tier
Because payment history and credit utilization together drive about 65% of a FICO score, two habits do most of the work:
- Never miss a payment. Automate at least the minimum on every account. A single 30-day-late mark can drop a good score sharply and linger for years.
- Keep utilization low. Use under 30% of each card's limit, and under 10% is better. Paying the balance down before the statement closes lowers the number that gets reported.
- Keep old accounts open. Length of history helps, and closing a card can raise your utilization by removing available credit.
- Apply sparingly. Each new-credit application can ding your score temporarily.
- Dispute errors. Check your reports free at AnnualCreditReport.com and correct mistakes — they are common and can cost you a tier.
The bottom line
Aim for at least 670 to be a solid borrower, and 740+ to unlock the best rates. You get there the same boring way every time: pay on time, keep balances low, and let your accounts age. For the full mechanics, read how credit scores work, and see what a better rate saves you on the loan calculator.
Educational information only, not credit advice. Ranges reflect the common FICO model; scoring models and lender cutoffs vary.
Sources & further reading
See what a better score is worth
Compare total interest at two rates and watch what moving up a credit tier saves.
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