A good credit score is 670-739 on the FICO scale (300-850). Very good is 740-799 and exceptional is 800-850. According to Experian data from early 2026, the average American FICO score is 715, which falls in the 'good' range.
Bottom line: You don't need a perfect 850 to get the best rates. Most lenders offer their top-tier rates to borrowers with scores of 740 or above.
Key Takeaways
- Score ranges: Poor (300-579), Fair (580-669), Good (670-739), Very Good (740-799), Exceptional (800-850)
- Average score: The average American FICO score is 715 as of 2026, up from 714 in 2024
- Best rates start at 740: Most lenders offer their lowest interest rates to borrowers with scores of 740+
- Two main models: FICO (used by 90% of lenders) and VantageScore use the same 300-850 range but weigh factors differently
- Improvement is possible: Most people can raise their score 50-100 points within 3-6 months with targeted actions
| Score Range | Rating | % of Americans | Typical Mortgage Rate | Credit Card Approval Odds |
|---|---|---|---|---|
| 800-850 | Exceptional | 21% | 6.2-6.5% APR | Excellent — premium cards |
| 740-799 | Very Good | 25% | 6.5-6.8% APR | Very High — most rewards cards |
| 670-739 | Good | 21% | 7.0-7.5% APR | Good — standard cards |
| 580-669 | Fair | 18% | 7.5-8.5% APR | Moderate — limited options |
| 300-579 | Poor | 15% | Often denied | Low — secured cards only |
Credit Score Ranges Explained
Credit scores range from 300 to 850, with higher scores indicating lower risk to lenders. Both FICO and VantageScore use this same scale, though they calculate scores differently. FICO scores are used in over 90% of lending decisions in the United States.
The five credit score tiers determine what financial products you qualify for and what interest rates you'll pay. The difference between a 'good' and 'exceptional' score on a $300,000 mortgage could save you over $40,000 in interest over 30 years.
What Factors Affect Your Credit Score?
Payment history (35%): Your track record of paying bills on time is the single biggest factor. Even one 30-day late payment can drop your score 50-100 points.
Credit utilization (30%): The percentage of available credit you're using. Keep this below 30%, and ideally under 10%, for the best scores. For example, if you have $10,000 in total credit limits, keep balances under $3,000.
Length of credit history (15%): The average age of your accounts. Longer history is better. This is why you should generally keep old accounts open.
Credit mix (10%): Having a variety of credit types (credit cards, installment loans, mortgage) helps your score.
New credit inquiries (10%): Each hard inquiry from a credit application may lower your score by 5-10 points temporarily.
What Credit Score Do You Need for Major Financial Products?
Mortgage: Minimum 620 for conventional loans, 580 for FHA loans. Best rates require 740+. According to Freddie Mac data, borrowers with 760+ scores save an average of $183/month on a $350,000 mortgage compared to those with 660 scores.
Auto loan: Minimum 500-600 depending on lender. Best rates at 720+. The average auto loan rate for excellent credit is 5.6% vs 11.5% for fair credit in 2026.
Credit cards: Premium rewards cards typically require 700+. Secured cards are available for scores below 600.
Apartment rental: Most landlords prefer 620+, though requirements vary by market.
How to Improve Your Credit Score
Quick wins (1-30 days): Pay down credit card balances to below 30% utilization. Dispute any errors on your credit reports. Become an authorized user on a family member's old account with perfect history.
Medium-term (1-6 months): Set up autopay for all bills to ensure perfect payment history. Apply for a credit-builder loan through a credit union. Avoid opening unnecessary new accounts.
Long-term (6-12 months): Maintain low utilization consistently. Let your average account age increase naturally. Diversify your credit mix if you only have one type of account.
How We Evaluated
Credit score ranges are based on FICO Score 8, the most widely used scoring model. Rate data sourced from Freddie Mac PMMS, Bankrate, and Federal Reserve surveys as of Q1 2026. Approval odds based on aggregated lender data from major banks and credit unions.
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Check Your Score FreeFrequently Asked Questions
What is the average credit score in America?
The average FICO credit score in the United States is 715 as of early 2026, according to Experian data. This falls in the 'good' range (670-739). The average has steadily increased from 695 in 2015.
Is 700 a good credit score?
Yes, 700 is a good credit score. It falls within the 'good' range (670-739) and qualifies you for most financial products at competitive rates. However, you may not get the absolute best rates, which typically require 740+.
How fast can I raise my credit score?
You can potentially raise your credit score 50-100 points within 1-3 months by paying down credit card balances and disputing report errors. Building from poor to good credit typically takes 6-12 months of consistent positive behavior.
Does income affect your credit score?
No, your income is not a factor in your credit score calculation. Credit scores are based on credit behavior: payment history, credit utilization, account age, credit mix, and new inquiries. However, income may affect credit approval decisions separately.
What credit score do I need to buy a house?
The minimum credit score for a conventional mortgage is 620, and for an FHA loan it's 580 (with 3.5% down) or 500 (with 10% down). To get the best mortgage rates, you'll want a score of 740 or higher, which could save you tens of thousands in interest.
Editorial Disclosure: WalletGrower may earn a commission from partner links. Our editorial content is independent and not influenced by advertisers. We research products independently and only recommend what we believe in. Updated April 2026.