What’s a Good Credit Score?

On February 16, 2025 By newsroom Topic: Debt Advice

Your credit score determines your ability to secure loans and favorable interest rates. Here's an overview of what constitutes a "good" credit score and how to maintain or improve it.

Credit Score Ranges

800+ (Exceptional)
- Borrowers are highly unlikely to default (1%).
- Qualify easily for the best rates and approvals.

740-799 (Very Good)
- Slightly higher delinquency risk (2%).
- Eligible for competitive rates but not guaranteed the best.

670-739 (Good)
- Considered an acceptable risk (8% delinquency chance).
- Most Americans fall into this range.

580-669 (Fair)
- Higher risk (27% delinquency chance).
- Likely to qualify only for subprime loans with higher interest rates.

579 and Below (Poor)
- Significant risk (61% delinquency chance).
- Limited access to credit; often requires collateral or high fees.

Why It Matters

Subprime Credit:
Scores below 600 can lead to:
Higher interest rates (up to 36%).
Limited loan options and additional fees.
Good Credit Threshold:
FICO scores of 660-670+ are generally considered "good" by lenders.
Staying above the "fair" range is crucial for affordable borrowing.

How to Improve Your Credit Score

Pay on Time:
- Payment history makes up 35% of your FICO score.

Manage Debt Wisely:
- Keep credit utilization below 30%.

Check Your Report:
- Regularly review for errors that might hurt your score.

Consider Credit-Building Programs:
- Experian Boost: Adds utility payments to your score calculation.
- UltraFICO: Factors in banking history.

Be Patient:
- Credit improvement takes time and consistent effort.

Maintaining a Healthy Range

Focus on sustainable financial habits rather than obsessing over a perfect 850 score.
Your efforts should aim to stay in the “Good” range or higher, ensuring access to reasonable credit terms.

Even with setbacks, recovery is possible—your credit score isn’t permanent.