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Generally speaking, scores between 690 and 719 are considered good credit. Scores above 720 are considered excellent, while scores between 630 and 689 are considered fair. Scores below 630 fall into the bad credit range.
FICO, the most widely known credit scoring system, and its competitor VantageScore both use a
FICO comes from Fair Isaac Corp., the company that first developed a credit scoring system. It uses data about consumers from the three major credit reporting bureaus: TransUnion, Equifax and Experian.
typically express a consumer's creditworthiness as a number between 300 and 850.
A good FICO score lies between 670 and 739, according to the company's website. FICO says scores between 580 and 669 are considered "fair" and those between 740 and 799 are considered "very good." Anything above 800 is considered "exceptional."
According to FICO, the in 2021 was 716, which falls in the good range.
FICO's competitor, VantageScore produces a similar score using the same credit report data from the three bureaus. (NerdWallet offers you a using VantageScore and your TransUnion credit report.)
A good VantageScore lies between 661 and 780, which the company calls a "prime" credit tier. VantageScores above 780 are considered "superprime" while those between 601 and 660 are "near prime." VantageScores below 600 are considered "subprime."
The average VantageScore 3.0 in July 2021 was 693.
because it determines whether you can borrow money and how much you'll pay in interest to do so.
Among the things a good credit score can help you get:
A good credit score helps in other ways: In many states, people with higher credit scores pay less for car insurance. In addition, some landlords use credit scores to screen tenants.
So having a good credit score is helpful whether you plan to apply for credit or not.
Lenders, such as credit card issuers and mortgage providers, may set their own standards on what "good credit" means as they decide whether to grant you credit and at what interest rate.
In practice, though, a good credit score is the one that helps you get what you need or want, whether that's access to new credit in a pinch or lower mortgage rates.
On the list of , two factors have the biggest influence: Payment history, which is whether you pay on time, and credit utilization, which is how much of your credit limits you have in use.
Other factors matter but carry a little less weight: how long you've had credit, whether you have a mix of credit types and how frequently and recently you've applied for credit.
Good credit habits, practiced consistently, will . Here’s what you need to do:
Want to see what powers your credit? Check your free credit score, get personalized insights. Weekly updates let you track your progress.
A is considered good. With good credit, you're more likely to get approved for credit (although lenders may consider other factors besides score). And you're likelier to get favorable terms like a lower interest rate.
fall between 720 and the highest score, 850. You don't have to get a perfect 850 — scores above 800 get you the best credit terms.
A is in the 630-689 range. It could be more difficult to qualify for credit or get the terms you want.
Scores under 630 fall in the range. Try the above tips to help build up your credit profile.