What is a good credit score?

People with good credit generally qualify for the best rates on personal loans, credit cards, and other types of credit. Strong credit also helps you get better insurance rates and housing. A good credit score shows lenders you’re financially responsible, make on-time payments, and can be counted on for repayment.^[1]

What is considered a ‘good’ credit score?

Many types of credit scores exist. However, FICO^® Score and VantageScore are the two main credit-scoring companies, with the Fair Isaac Corporation (FICO) score being used by about 90% of top lenders.^[2] Both companies use a scoring range of 300 to 850, with 850 being the highest score. FICO generally considers a score between 670 and 739 as good.^[3] VantageScore models define good as a score 661 to 780.^[4]

VantageScore vs FICO score

FICO and VantageScore credit-scoring models use unique (and proprietary) scoring methodologies to calculate your credit score. However, both models typically consider the following factors:

• Your payment history

• How much you owe

• The age of your credit history

• Your credit mix

• New credit accounts

Your score may differ between different scoring systems. However, since your score is based on many of the same factors in your credit history, if you have a good FICO score you most likely also have a good VantageScore.^{[4] [5]}

What is a good VantageScore?

The VantageScore model was developed in 2006 by the three major consumer credit bureaus—Equifax, Experian, and TransUnion. Your VantageScore is based on credit report data from each of the bureaus. The latest versions, VantageScore 3.0 and VantageScore 4.0, generally consider a “Prime” score of 661 to 780 to be good. Lenders that check your VantageScore typically use the VantageScore 3.0, but VantageScore 4.0 is expected to become more popular as more lenders transition over.^[5]

What is a good FICO score?

The FICO score model was introduced in 1989 and is the credit score most lenders use when you apply for credit. FICO has several types of scores lenders can choose from, some of which are industry-specific. FICO 8 is the base scoring model, and it’s most commonly used when you apply for loans and other types of credit. However, if you apply for a car loan, for example, the lender might check your FICO Auto Score instead. Generally a FICO credit score range of 670 to 739 is considered good across the different FICO versions.^[3]

What is the average credit score?

Most Americans have good credit, according to the latest data from both FICO and VantageScore. In 2023, FICO scores averaged 717, and VantageScores averaged 704 in 2024. However, many consumer trends affect score averages like changes in people’s ability to pay their bills on time, rising consumer debt, and falling rates of new credit applications. Where you live can also affect credit score averages.

What does a good credit score get you?

People with good credit often qualify lower rates and better credit terms. Some of the benefits of having a good credit score include:

• A stronger chance of approval: A good credit score indicates to lenders that you are a trustworthy borrower.

• Better interest rates: A good credit score can help you qualify for loans and credit cards with more favorable rates and terms.

• Higher credit limits: Lenders base your credit limits or loan amounts on many factors, including your credit score. A good credit score can help you qualify for higher amounts.

Remember: Lenders consider more than your credit score when you apply for credit, and each has its own lending requirements. Shop around to make sure you’re getting the best rates.^[1]

How to get a ‘good’ credit score

Building good credit may take time. However, using the following strategies can help you improve your credit and maintain a good credit score over time.

Pay on time, every time

Of all the factors that affect your credit score, your payment history carries the most weight. For this reason, the number one thing you can do to improve your score is to pay your bills on time and avoid missed payments.^[6]

Pay down debt

To keep your credit utilization low, aim to pay as much as possible toward your debt each month. Consider a debt consolidation loan to pay down high-interest debt, like credit cards.

Maintain a consistent credit history

The longer you’ve been borrowing money, the more detailed your credit report will be. Lenders prefer a longer credit history because it reveals the borrower’s spending habits and reliability. So keep those older credit cards open even if you don’t use them.^[6]

Opt for different types of credit

Lenders like to see you can manage different types of credit accounts. Although your credit mix only determines about 10% of your FICO credit score, for example, it’s still a good idea to maintain a varied mix of credit cards, auto loans, personal loans, mortgage loans, and other credit products.^[6]

Limit applications for new credit

Applying for credit can cause your score to dip thanks to a hard inquiry from the lender. Numerous applications within a short timeframe for credit can also signal to a lender that you’re not able to manage credit responsibly.^[6]

Ask for higher credit limits

You may be able to lower your credit utilization rate by asking creditors for a credit limit increase. However, this is only helpful if your spending stays low.^[6]

Dispute credit report errors

Errors on your credit report can affect your score negatively—especially when fraudulent activity occurs. So, it’s a good idea to check your credit reportregularly. If anything looks off, report it immediately. You can request free copies of your credit reports from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once a year at AnnualCreditReport.com.^[6]

The bottom line

Your credit score is an important factor lenders consider when you apply for credit, like a personal loan or credit card. If your credit isn’t perfect, don’t worry; a good score is usually all you need to qualify for the best loan and credit offers. If your credit is still a work in progress, you can take steps to improve your scores over time. Remember, checking your own credit is a good way to keep tabs on your score and look out for fraudulent activity—without affecting your score.

FAQs

Staying on top of your credit score is an important part of managing your finances. Here are some commonly asked questions to learn more about credit scores.

Can you get a perfect credit score?

Though it’s possible to achieve a perfect score of 850, credit scores often fluctuate for many reasons. Instead of trying to keep your score “perfect,” aim to keep your credit in the good-to-excellent credit range.

What credit score should I aim for?

A credit score of 670 or higher is generally considered good and will help you access better insurance rates, credit cards, and housing options. Keep in mind that your score may go up and down slightly, depending on when you make payments, how much available credit you have, and other factors.

What is a decent credit score to buy a car?

While there’s no industry-wide standard, you’ll get the best deal on an auto loan if your credit score is good. You can still buy a car with lower scores, but your interest rates will be much higher.

Can you apply for a personal loan with average credit?

If your credit score is on the lower side, you’ll likely have a harder time finding a personal loan or debt consolidation loan with good rates and terms. Take steps to improve your credit before applying to qualify for the best offers.

1. Consumer Financial Protection Bureau. “How do I get and keep a good credit score?”

2. myFICO. “FICO Score Remains the Most Widely Used Credit Score in the Securitization Market, Keeping Lender Confidence.”

3. myFICO. “What is a FICO Score?”

4. VantageScore. “The Complete Guide to Your VantageScore.”

5. myFICO. “What's in my FICO Scores?”

6. Consumer Financial Protection Bureau. “How do I get a free copy of my credit reports?”