Credit Score Ranges Explained: What Each Range Means

Your credit score is a three-digit number that can determine whether you're approved for a mortgage, what interest rate you'll pay on a car loan, or even whether you'll get that apartment you're eyeing. But what do these numbers actually mean?

Credit scores range from 300 to 850, but the difference between a 650 and a 750 isn't just 100 points—it's thousands of dollars in interest, better loan terms, and significantly more financial opportunities.

The Two Main Credit Scoring Models

Before diving into ranges, you need to understand that there are two primary credit scoring systems in use:

FICO Score

• Used by 90% of lenders for credit decisions
• Created by Fair Isaac Corporation
• Multiple versions exist (FICO 8, 9, 10, etc.)
• Industry-specific scores for mortgages, auto loans, and credit cards
• Most widely recognized and trusted

VantageScore

• Created by the three major credit bureaus (Experian, Equifax, TransUnion)
• Gaining adoption but still less common than FICO
• Often what you see on free credit monitoring apps
• Similar range (300-850) but different calculation

Important: The score you see on Credit Karma or your credit card app is likely VantageScore, which can differ significantly from the FICO score lenders actually use.

FICO Score Ranges Explained

Here's how FICO categorizes credit scores and what each range means for your financial life:

Exceptional (800-850)

Who's here: About 20-23% of consumers

What it means:

You're in the elite tier. Lenders view you as an exceptionally low risk. You have a long, established credit history with consistent on-time payments, low utilization, and a diverse credit mix.

What you get:

• Best interest rates available on all loan products
• Pre-approved offers for premium credit cards with high limits
• Minimal [documentation](/blog/heloc-documentation-requirements) requirements for some loans
• Higher credit limits when requested
• Better negotiating power with lenders

Typical mortgage rate difference: You might get 6.5% on a mortgage while someone with a 650 score gets 7.5%. On a $400,000 loan, that's about $260/month or $93,000 over 30 years.

What it takes to get here:

• Multiple years of perfect payment history
• Credit utilization consistently under 10%
• Mix of credit types (cards, installment loans, mortgage)
• Average account age of 10+ years
• No negative marks

Very Good (740-799)

Who's here: About 25% of consumers

What it means:

You're a reliable borrower with a strong credit history. Most lenders will be eager to work with you, and you'll qualify for competitive rates on virtually all credit products.

What you get:

• Near-best rates (typically within 0.25% of the best)
• Easy approvals for most credit products
• Competitive credit card offers with rewards
• Good terms on auto and personal loans

Real-world impact: At 760, you'll likely get the same mortgage rate as someone with an 820. Many lenders use 740-760 as the cutoff for their best rates, so once you're here, the benefits of going higher are marginal for most products.

What it takes to maintain:

• Consistent on-time payments
• Utilization under 30%
• Few hard inquiries
• Several years of credit history
• Minimal negative marks (and only minor ones)

Good (670-739)

Who's here: About 21% of consumers

What it means:

You're near or slightly above the average credit score in America. You're considered an acceptable risk by most lenders, but you won't qualify for the absolute best terms.

What you get:

• Approval for most loans and credit cards
• Decent interest rates but not the lowest
• Standard credit card offers without premium perks
• May need larger down payments on some loans

Rate impact: You might pay 0.5-1% more on a mortgage than someone in the "very good" range. On that same $400,000 mortgage, the difference between 7% (good) vs 6.5% (very good) is about $136/month or $49,000 over 30 years.

[How to improve](/blog/how-to-improve-credit-score-fast):

• Focus on paying down credit card balances
• Ensure all payments are on time
• Avoid new credit applications for several months
• Dispute any errors on your credit report
• Become an authorized user on a well-managed account

Fair (580-669)

Who's here: About 17% of consumers

What it means:

You're considered "subprime," meaning lenders view you as a higher risk. You may have some negative marks on your credit report, high utilization, or a limited credit history.

What you get:

• Higher interest rates across all products
• Lower credit limits on cards
• Larger down payments required for mortgages
• May need a co-signer for some loans
• Limited credit card options (often with fees and poor terms)
• FHA loans still available (minimum 580 for 3.5% down)

Real costs: At 620, you might pay 7.5-8% on a mortgage vs 6.5% for excellent credit. That's $378/month more on a $400,000 loan—$136,000 over the life of the loan.

Common issues in this range:

• Late payments within the past 2 years
• High credit card balances (over 50% utilization)
• Collections accounts
• Accounts in default
• Short credit history

Path forward:

This is the range where focused effort can make a huge difference. Moving from 630 to 680 can save you tens of thousands on a mortgage.

• Pay down debt aggressively
• Make every payment on time for at least 6 months
• Dispute errors immediately
• Consider a secured credit card to rebuild
• Don't close old accounts

Poor (300-579)

Who's here: About 14% of consumers

What it means:

You're considered a high credit risk. You likely have significant negative marks such as recent late payments, collections, charge-offs, bankruptcy, or foreclosure.

What you get:

• Very limited credit options
• Extremely high interest rates (when approved)
• Secured cards or sub-prime products only
• Difficult to rent apartments without a co-signer
• May face challenges with utilities and cell phone contracts
• FHA requires 10% down minimum (below 580)

Credit availability: Many traditional lenders won't work with you at all. Those that do will charge premium rates—sometimes 10-15% or higher on personal loans.

Common causes:

• Bankruptcy within the past 2 years
• Foreclosure or [short sale](/blog/short-sale-explained)
• Multiple collections accounts
• Charge-offs or settled accounts
• 30+ days late on multiple accounts
• Very high utilization (over 80%)

Rebuilding strategy:

Getting out of this range requires patience and discipline, but it's absolutely possible:

1. Ensure all current accounts are paid on time (this is the foundation)
2. Address collections (pay for delete if possible)
3. Open a secured credit card and use it responsibly
4. Consider a credit-builder loan from a credit union
5. Monitor your reports and dispute errors aggressively
6. Give it time—negative marks lose impact over time

You can typically move to the "fair" range within 6-12 months of consistent positive behavior.

How Credit Scores Are Calculated

Understanding what goes into your score helps you know which range you'll fall into:

1. Payment History (35%) – Have you paid on time?
2. Amounts Owed (30%) – How much debt do you carry?
3. Length of Credit History (15%) – How long have you had credit?
4. New Credit (10%) – Have you recently applied for multiple accounts?
5. Credit Mix (10%) – Do you have different types of credit?

VantageScore Ranges

While similar to FICO, VantageScore uses slightly different categories:

• Excellent: 781-850
• Good: 661-780
• Fair: 601-660
• Poor: 500-600
• Very Poor: 300-499

The differences in calculation mean your VantageScore can be 20-50 points different from your FICO score.

Industry-Specific Scores

Lenders often use specialized FICO scores tailored to specific products:

FICO Auto Scores (250-900 range)

Weighted more heavily toward:

• Auto loan payment history
• Recent credit behavior

FICO Bankcard Scores (250-900 range)

Emphasize:

• Credit card utilization
• Credit card payment history

FICO Mortgage Scores

Typically use older models (FICO 2, 4, 5) and take the middle score of all three bureaus. This is often 10-30 points lower than your regular FICO 8 score.

What Lenders Actually See

When you apply for a loan, lenders typically:

1. Pull all three bureaus (Experian, Equifax, TransUnion)
2. Use the middle score for mortgage decisions
3. Use the lower score for joint applications
4. Apply their own risk models on top of your credit score

This means your score is important, but it's not the only factor. Income, [debt-to-income ratio](/blog/dti-ratio-explained), employment history, and assets all matter.

How to Check Your Actual FICO Score

Free methods:

• Some credit cards provide free FICO scores (check your card benefits)
• Experian offers free FICO 8 access
• Discover offers free FICO for anyone (even non-cardholders)

Paid option:

• MyFICO.com ($20-40) gives you all three bureau FICO scores

Moving Between Ranges: What It Takes

From Poor to Fair (580+)

Timeline: 6-12 months

Focus:

• Perfect payment history
• Pay down high balances
• Address collections

From Fair to Good (670+)

Timeline: 6-18 months

Focus:

• Keep utilization under 30%
• Let time heal old negatives
• Avoid new credit applications

From Good to Very Good (740+)

Timeline: 12-24 months

Focus:

• Reduce utilization to under 10%
• Maintain perfect payment record
• Build account age

From Very Good to Exceptional (800+)

Timeline: 24+ months

Focus:

• Perfect credit behavior over years
• Diverse credit mix
• Very low utilization (under 5%)

The Bottom Line

Your credit score range determines your access to credit and how much you'll pay for it. The difference between "fair" and "very good" can easily cost you $100,000+ over a lifetime in higher interest rates.

The good news? You're not stuck in your current range. With the right strategies and consistent effort, most people can move up one tier within 6-18 months.

Understanding these ranges helps you set realistic goals and recognize where focused [improvement](/blog/heloc-vs-home-improvement-loan) will have the biggest impact on your financial life.

Related Articles

• How to Get a 700 Credit Score: Step-by-Step Plan
• How to Get an 800 Credit Score: Advanced Strategies
• How Debt Consolidation Affects Your Credit Score