02/11/2026
What Is a Good Credit Score?
A good credit score can help you qualify for the best credit card offers and interest rates. In this article, we break down the two main scoring systems and offer tips on how and why to improve your credit score.
Most consumers know how important their credit score is. This three-digit number serves as a gauge for lenders to assess your creditworthiness and risk level when you apply for a credit card, loan, mortgage or other lines of credit. A “good” credit score opens the door to financial opportunities — from securing a mortgage to getting a favorable interest rate on loans or car insurance. And landlords or employers might even check it before extending a contract.
What Is a Credit Score?
With such a broad range of numbers, it can be tricky to understand how you measure up. Your credit score is a number between 300 and 850 and is derived from your activity to date.1
The better your credit score, the better your chance to be approved for credit — and at the most attractive rates. In this case, higher is better. A higher credit score means you could receive lower interest rates on loans and offers.
There are two types of credit scoring models: FICO® Score and VantageScore.® A lender may use either score to help determine what types of credit lines or interest rates are available to you. Both scores have a similar credit scoring system, with only a few simple differences.2
What Is a Good FICO Score?
FICO Scores are the more commonly used type of credit score. In order to have a FICO Score, you must have a credit history of at least six months.
Your payment history, credit utilization ratio and the length of your credit history are considered influential factors in determining your FICO Score.
For example, a long history of making on-time payments and using less than 30% of your available credit at any one time will help generate a higher FICO Score.
Below is a credit score chart with credit score ranges for FICO Score.
Score Rating Explanation
800+ Exceptional These are the highest scores you can achieve. You'll qualify for the best offers and interest rates.
740-799 Very Good While not the highest, these scores are also considered very good. Lenders will still offer you great, if not the best, deals.
670-739 Good You may still be approved for credit at this level and you may receive offers for good interest rates, but they may not be the most competitive deals.
580-669 Fair While these scores are below average, many lenders may still approve loans in this range.
579 or below Poor Your credit applications have a higher chance of being declined. You may have to pay higher interest rates or penalties. You may also be asked to secure your credit with a deposit.
What Is a Good VantageScore?
VantageScore also uses a scale of 300 to 850, but the formula for calculating it differs slightly from FICO Score calculations. As with FICO Scores, be sure to make your payments on time and in full.
Below is a credit score chart with credit score ranges for VantageScore.
Score Rating Explanation
781-850 Excellent These scores are considered top of the line. You'll receive more attractive offers for credit cards and loans.
661-780 Good You'll still receive some competitive offers, though you may not get the best interest rates.
601-660 Fair You may still be approved for credit and loans, but you may have to pay higher fees and interest rates.
600 or lower Poor There is a chance that you may not be approved for credit. If you are, you will pay high interest rates, and you may be asked to secure your loan with a deposit.
How to Improve Your Credit Score
Your credit score is affected by many different factors. To improve your credit score, try following these simple steps:
Make your payments on time. Late payments can be one of the top ways to ding your score, so ask your bank or lender to set up automatic payments to ensure you never miss a due date.
Use a mix of different types of credit. Using more than one type of loan or credit can help improve your score. For example, if your only type of debt is a credit card, your score may be slightly lower than that of someone who has a credit card, a mortgage and a car loan. This is called “credit mix."
Keep a low credit utilization ratio. The lender looks at this to determine how high your payments will be. For example, if you have a credit limit of $1,000, it's best to use just $300 or $500 of it, rather than running it all the way up (even if you pay it off).
Avoid applying for too much credit at once. When you apply for a new loan or credit card, the lender will perform a “hard inquiry" on your credit score. Too many of these can negatively impact your score. Furthermore, if you open too many new accounts at once, your score may drop.
Hope this information helps. If you still have questions, please feel free to reach out to one of our associates. We would be happy to help! We do NOT engage in credit repair or credit consulting. We are offering this service to any applicant who may have applied with one of our clients and was not understanding their score.
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