Credit Score Ranges: What They Mean and How They Work

Key takeaways

Credit scores typically range from 300 to 850, and a score of 700 or higher is generally considered good, while 750 or higher is considered very good.
Lenders use credit scores to evaluate how likely you are to repay debt, which can affect loan approvals, interest rates, apartment rentals, and even some utility services.
There isn't just one credit score. FICO Score and VantageScore are the two most common scoring models, and it's normal to have different scores under each.
Payment history, credit utilization, length of credit history, and other factors all influence your credit score, although each scoring model weighs them differently.
Paying bills on time, keeping credit utilization below 30%, and regularly reviewing your credit report can help you build and maintain a healthy credit score.

Credit scores are calculated using scoring models that perform sophisticated statistical analysis of your credit report contents including your repayment history, length of your credit history, and more, as reported by the three major credit bureaus: Experian, Equifax, and TransUnion. Scoring models may differ in how they arrive at your credit score, but all models use a three-digit number to help creditors make lending decisions. In most models, having a higher score around 800 to 850 means you’re doing well with your spending, debt, and overall financial wellness.

monitors your VantageScore Credit Score, which was created by the three major credit bureaus. The current VantageScore Credit Score model uses a range between 300 and 850. A VantageScore Credit Score above 700 is good, while above 750 is considered to be very good.

What does my credit score mean?

Credit scores are tools that lenders use to help them decide to give you credit and anticipate how likely you are to repay your loan on time. Credit scores are also sometimes called risk scores because they help lenders assess the risk that you won't be able to repay the debt as agreed.

Having a good credit score determines whether you'll qualify for a loan. Depending on the interest rate of the loan you are eligible for, it could mean the difference between hundreds and even thousands of dollars in savings over the life of the loan. A good credit score could also help you rent an apartment or qualify for smartphone service.

How many credit scores are there?

A common myth about credit scores is that there is only one credit score. There are many different credit-scoring models lenders use. Some estimates suggest there are more than 1,000, although some scoring models are used more than others.

What is a good credit score?

For a score with a range between 300-850, a credit score of 700 or above is generally considered good. A score of 750 or above on the same range is considered to be very good. Most credit scores fall between 600 and 750. Higher scores represent better credit decisions and can make creditors more confident that you will repay your future debts as agreed. FICO Score and VantageScore are two of the most common types of credit scores, but industry-specific scores also exist.

What is a credit utilization rate or ratio?

Credit utilization rate, sometimes called your credit utilization ratio, is the amount of revolving credit you're currently using divided by the total amount of revolving credit you have available. In short, it's how much you currently owe divided by your credit limit, and it's typically shown as a percentage.

FICO score ranges

Very good: 750 to 850

FICO Scores in the range of 750 to 850 are considered exceptional. Borrowers with scores in this range are generally easily approved when they apply for new credit. They are also likely to be offered the best available lending terms, including the lowest interest rates and fees.

Good: 700 to 749

FICO Scores in the 700 to 749 range are considered very good. People with scores in this range may qualify for better interest rates from lenders.

Fair: 650 to 699

FICO Scores in the range of 650 to 699 are deemed good. This range includes the average U.S. credit score, and lenders view consumers with scores in this range as "acceptable" borrowers. Individuals with scores in this range are likely to qualify for a broad array of loans and credit cards but are likely to be charged interest rates somewhat higher than the best available.

Poor: 550 to 649

FICO Scores that range from 550 to 649 are considered poor. Lenders may disqualify individuals with these scores if they apply for mainstream loans. Consumers with scores in this range may be regarded as subprime borrowers, eligible only for loans with interest rates significantly higher than the best available.

Very poor: 300 to 549

FICO Scores that range from 300 to 549 are classified as very poor. Many lenders reject credit applications from individuals with scores in this range. Credit card applicants with scores in this range may only qualify for secured cards that require placing a cash deposit equal to the card's spending limit. Utility companies may require customers with scores in this range to put down substantial security deposits.

VantageScore Credit Score Ranges

Like FICO Scores, the VantageScore uses a 300 to 850 scoring range to help lenders evaluate your creditworthiness. A VantageScore above 700 is good, while above 750 is considered very good.

While both FICO and VantageScore use the same overall range, they calculate credit scores differently. For example, VantageScore and FICO Scores may weigh factors such as payment history, credit utilization, credit age, and new credit differently. As a result, it's possible to have different scores under each model, even though they're based on the same credit reports.

The scoring model a lender uses depends on the lender and the type of credit you're applying for. Understanding both VantageScore and FICO Scores can give you a more complete picture of your overall credit health.

How to improve your credit score

Knowing where your credit score falls on the score range for both the VantageScore and FICO scoring models is essential to understanding how lenders see you. The score ranges also help you track your progress over time as you work to improve or maintain your credit score. With patience and practicing good financial habits, you can maintain "good" credit. To stay on track, avoid late payments and focus on keeping your credit utilization below 30 percent of your available limits.

Also, check your credit report often—there is no penalty to do this. It will let you know if there are any unfavorable or suspicious entries in your file that could indicate identity theft.

Strong knowledge of your credit scores and how your credit behaviors influence them can help move your score up the score range. It can also help you gain access to more opportunities to achieve your financial goals.

This content was created in partnership with ProtectMyID from Experian. Access to identity theft protection through ProtectMyID (Basic Level) is included in AAA Membership.

Frequently Asked Questions About Credit Scores

What is a good credit score?

On the common 300 to 850 scale, a credit score of 700 or above is generally considered good, while 750 or above is considered very good. Higher scores can improve your chances of qualifying for favorable lending terms.

What does your credit score mean to lenders?

Your credit score helps lenders assess how likely you are to repay borrowed money on time. A higher score can make you appear less risky and may help you qualify for loans, better interest rates, rentals, and other services.

How many credit scores do you have?

Most people have more than one credit score because lenders use a variety of scoring models. While there may be more than 1,000 scoring models in use, a few major models are used most often.

What is the difference between FICO and VantageScore?

FICO and VantageScore are two of the most widely used credit-scoring models. Both use three-digit scores, but they differ in how they calculate scores and weigh information in your credit history.

What is credit utilization?

Credit utilization measures how much revolving credit you are using compared with your total available credit. It is typically expressed as a percentage and is an important factor in many credit-scoring models.

How can you improve your credit score?

Improving your credit score often starts with paying bills on time and keeping credit utilization below 30% of your available credit. Regularly reviewing your credit report can also help you identify errors or suspicious activity.

What credit score do you need to qualify for a mortgage?

There is no universal minimum credit score for a mortgage because requirements vary by lender and loan type. Some lenders may look for a score of at least 620, although other factors such as your down payment can also influence approval.

How long does it take to raise your credit score?

Raising your credit score takes time and consistency. Paying on time, reducing credit utilization, and maintaining healthy credit habits can help improve your score, but meaningful changes often require patience.

What is a good FICO Score?

A good FICO Score ranges from 700 to 749, while a score of 750 to 850 is considered very good.

Is a 649 credit score good or bad?

A 649 credit score is generally considered fair—not good or bad. While you may still qualify for loans or credit cards, you may receive higher interest rates and fewer favorable terms than someone with a higher score.