What Is a Good Credit Score?
A good FICO credit score falls between 670 and 739. But understanding every tier — and what lenders actually reward — can save you thousands of dollars in interest.
FICO Score Ranges at a Glance
| Score Range | Rating | What It Means |
|---|---|---|
| 800–850 | Exceptional | Best rates on all products; top 20% of consumers |
| 740–799 | Very Good | Above-average rates; minimal lender risk |
| 670–739 | Good | Near or above national average; most loans approved |
| 580–669 | Fair | Subprime territory; higher rates, stricter terms |
| 300–579 | Poor | Credit rebuilding needed; secured cards recommended |
The FICO score range runs from 300 to 850. While any score above 670 is technically "good," the sweet spot that unlocks the best mortgage and auto rates is 740 or higher. At that threshold, lenders classify you as a low-risk borrower and compete for your business.
What Makes a Credit Score "Good"?
Credit scores are calculated from five key factors. FICO weights them as follows:
| Factor | FICO Weight |
|---|---|
| Payment History | 35% |
| Amounts Owed (Utilization) | 30% |
| Length of Credit History | 15% |
| Credit Mix | 10% |
| New Credit (Inquiries) | 10% |
To achieve a good credit score, focus first on payment history and utilization — together they make up 65% of your score. Never miss a payment, and keep revolving balances below 30% of your credit limits (ideally under 10%).
How a Good Score Saves You Money
The difference between a fair score (620) and an exceptional score (800) can translate to $50,000+ in lifetime interest savings on a 30-year mortgage. On a $400,000 home loan, a borrower with a 760 score might secure a 6.5% rate while a 620-score borrower pays 8.1% — that's over $140,000 in additional interest payments.
Even on smaller purchases like auto loans or credit cards, improving from fair to good credit typically saves 3–5 percentage points in APR.
Average Credit Score in the U.S.
The average FICO score in the United States has climbed to approximately 718, according to recent FICO data. This places the average American squarely in the "good" category. However, averages vary significantly by age group — older Americans tend to have higher scores due to longer credit histories.
How to Reach a Good Credit Score
If your score is below 670, here are the most impactful moves:
- Eliminate late payments — even one 30-day late can drop a score by 60–110 points
- Lower your credit utilization — pay down balances to under 30% of each card's limit
- Dispute inaccuracies — roughly 25% of credit reports contain errors that may be lowering your score
- Become an authorized user — piggybacking on a family member's account can add positive history fast
- Avoid new hard inquiries — space out applications by at least 6 months
Frequently Asked Questions
What credit score is needed to buy a house?
Most conventional mortgages require a minimum 620 FICO score. FHA loans accept scores as low as 580 with 3.5% down, or 500 with 10% down. The best mortgage rates go to borrowers with 740+.
Is 700 a good credit score?
Yes. A 700 FICO score falls in the 'good' range (670–739). You'll qualify for most credit products, though you may not receive the absolute lowest interest rates reserved for 740+ borrowers.
What credit score do you start with?
You don't start with a score. A FICO score is generated only after you have at least one account that has been open for 6 months and reported to a bureau in the past 6 months.
Can I get a car loan with a 600 credit score?
Yes, many auto lenders approve loans for scores in the 580–669 (fair) range, but expect interest rates of 9–15% vs. 5–6% for borrowers with good credit.
How many Americans have a credit score above 800?
Approximately 21–23% of Americans have a FICO score of 800 or higher, according to FICO's most recent data.