What Is a Good Credit Score? Complete Guide to Credit Score Ranges
Understanding credit score ranges is essential for managing your financial health. Whether you're applying for a mortgage, car loan, or credit card, your credit score plays a crucial role in determining your eligibility and interest rates.
Credit Score Ranges Explained
Credit scores typically range from 300 to 850. Here's how FICO categorizes them:
| Score Range | Rating | What It Means | |-------------|--------|---------------| | 800-850 | Exceptional | Best rates and terms available | | 740-799 | Very Good | Above average, qualify for good rates | | 670-739 | Good | Near or slightly above average | | 580-669 | Fair | Below average, limited options | | 300-579 | Poor | Difficulty getting approved |
What Score Do You Need?
For a Mortgage
- Conventional loans: 620 minimum, 740+ for best rates
- FHA loans: 580 minimum with 3.5% down, 500-579 with 10% down
- VA loans: No official minimum, but most lenders want 620+
For Auto Loans
- Prime rates: 700+
- Subprime rates: 500-699
- Deep subprime: Below 500
For Credit Cards
- Premium rewards cards: 740+
- Standard cards: 670+
- Secured cards: Any score
How Your Score Is Calculated
FICO scores are based on five factors:
- Payment History (35%) - On-time payments
- Credit Utilization (30%) - Balances vs. limits
- Length of Credit History (15%) - How long you've had credit
- Credit Mix (10%) - Types of accounts
- New Credit (10%) - Recent applications
Improving Your Score
If your score isn't where you want it to be, there are steps you can take:
- Pay all bills on time
- Keep credit card balances low
- Don't close old accounts
- Limit new credit applications
- Check your credit reports for errors
The journey to better credit starts with understanding where you are and taking consistent action to improve.