The range of what people consider to be a good credit score can vary. So how do things break out along that range when it comes to “good” and “poor” scores? So, if you’re considering opening a new credit card or refinancing your mortgage, take a moment to check your credit score and get an idea if you have good credit or bad credit. A credit score deemed "very good" or "exceptional" by FICO (the Fair Issac Corporation) may range from 740 or higher. You’ll get Prime market rates on loans and credit offers. With all that in mind, here’s how a typical FICO credit score breaks down: The tiers of a VantageScore credit score are slightly different and look like this: As you can see, there’s a lot of variation between the two competing systems. A good credit score is typically anything above 670. Here's what it means to have good credit, what it can do for you, and how to take your score to the next level. To be clear, there is no set number that is defined as the cutoff between a "bad" and "good" FICO score. Why Is a Credit Score Range Considered Good? A good CIBIL™ score is one that is 750 or above. Many credit card issuers give a free credit score to customers. Very good: 740-799; Excellent: 800-850; TransUnion credit score ratings. Your score falls within the range of scores, from 300 to 579, considered Very Poor. The most well-known and widely used credit scoring system is called FICO, named after Fair, Isaac and Company, which invented it. On good ground. The average American consumer has a FICO score of 700, so that's a good reference point to determine how you're doing relative to others. A good score of 660 to 724 is near average; if that’s your number, most lenders consider you a solid borrower. Poor This indicates a poor Equifax credit score. Credit Score. The average person with a FICO score over 800 uses 4% of his or her revolving credit limits. Many lenders choose not to do business with borrowers whose scores fall in the Very Poor range, on grounds they have unfavorable credit. Typically any score under 650 is considered bad. Credit scores are no longer any mystery. A credit score around 800 is very solid and shows you have built a strong credit history. Very Good Score (740 – 799) The majority of Americans, 25%, fall into this category. 466+ Excellent This indicates an excellent Equifax credit score. The terms “good” and “very good” refer to the credit-scoring model set forth […] Plus, a lender will also take other factors into account beyond your credit score, such as your income and existing monthly debt payments. The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters. What is a good credit score, and how can you get there? Your FICO ® Score falls within a range, from 740 to 799, that may be considered Very Good. By subscribing, you agree to our privacy policy. I knew we probably wouldn’t be able to get a car loan with our credit score, because I wasn’t very good about paying my student loans, and my many parking tickets had gone to collections. Here’s what affects the widely used FICO credit scoring model and by how much: Making all your payments on time accounts for 35 percent of your FICO score. I always tell friends that it's possible to go from no credit to good credit in a fairly short period, but that building excellent credit takes time. Fortunately, there are some excellent credit card products available to people with good credit scores, and you can check out our favorites here. Before you apply for a personal loan, here's what you need to know. A good credit score gets approval for attractive rates and terms for loans. The Ascent does not cover all offers on the market. The range of what people consider to be a good credit score can vary. Credit score ranges determine how creditors, insurers and even employers look at you. Click here to get free access to our expert’s top pick. Very good and excellent/exceptional: Above mid-700s. Mortgages. Success! Very Good 740-799 Good ... a good credit score will generally get you approved for a car loan, new or used. Typically any score under 650 is considered bad. We tried to stay optimistic. For VantageScore 3.0, a good score is 661 or higher, and a score of 781 to 850 is excellent. A score between 300 and 579 is considered to be very poor, while one that's between 580 and 669 is considered fair. But what exactly does your credit score mean, and what’s a good credit score versus a bad one? With both, 800 is exceptional. We provide a score from between 0-999 and consider a 'good' score to be anywhere between 881 and 960, with 'fair' or average between 721 and 880. The fact is, having good credit offers all kinds of benefits, some of which most people aren’t aware of. Editorial Disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities. The Ascent is reader-supported: we may earn a commission from offers on this page. And if you have excellent credit scores, you have an even better chance of being offered the best rates and terms available. Don't open new credit account too often, and let your open accounts age. On this page: Credit Score Ranges; How to Get a Good Credit Score; Benefits of a Good Credit Score; Actions That Hurt Your Score Scores between 604-627 are considered Good; Scores 628 and above are considered Excellent; Your score is based on credit factors like your payment history and how much of your available credit you’re currently using. We consider a ‘good’ score to be between 881 and 960, with ‘fair’ or average between 721 and 880. I knew we probably wouldn’t be able to get a car loan with our credit score, because I wasn’t very good about paying my student loans, and my many parking tickets had gone to collections. Compensation may impact the order in which offers appear on page, but our editorial opinions and ratings are not influenced by compensation. You can start taking your credit score from “bad” to “good” by disputing errors on your credit report, paying down excessively high debts and limiting new credit inquiries. It’s not uncommon for credit reports to have the wrong data, and with so many data breaches in recent years, it’s also possible for fraudulent accounts to appear on your report if your sensitive personal information has fallen into the wrong hands. A Warner Media Company. Other options may be costly “small-dollar” loans (such as auto title or payday loans) with interest rates that experts say average 391%. 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