In the United States, a credit score is one of the most important financial numbers a person has. It influences the ability to get approved for loans, credit cards, housing, and sometimes even employment or insurance rates. Understanding what is considered a good credit score can help you make better financial decisions.
What Is a Credit Score?
A credit score is a numerical representation of a person’s creditworthiness. It is calculated using information from credit reports, such as payment history, credit usage, length of credit history, and types of credit accounts.
Most lenders in the U.S. use FICO® scores, which typically range from 300 to 850.
Credit Score Ranges Explained
While exact classifications may vary slightly depending on the lender, credit scores are generally grouped into the following ranges:
Excellent Credit (800–850)
- Considered top-tier credit
- Access to the lowest interest rates
- Highest approval odds for loans and credit cards
- Often qualifies for premium financial products
Very Good Credit (740–799)
- Strong credit profile
- Approved for most loans with competitive rates
- Viewed as low risk by lenders
Good Credit (670–739)
- This is what most lenders consider a “good” credit score
- Generally eligible for standard loans and credit cards
- Interest rates may be slightly higher than top-tier scores
Fair Credit (580–669)
- Credit is considered below average
- Loan approvals may be limited
- Higher interest rates and stricter terms are common
Poor Credit (300–579)
- High-risk category
- Difficulty getting approved for credit
- Often requires secured products or co-signers
What Score Do Lenders Usually Look For?
Most lenders consider a credit score of 670 or higher to be good. This range typically qualifies borrowers for conventional loans and mainstream credit products.
However, different financial products may have different minimum requirements:
- Credit cards: often 620–670+
- Personal loans: usually 660+
- Auto loans: varies, but better rates above 700
- Mortgages: commonly 620+ for basic eligibility, higher for better terms
Why a Good Credit Score Matters
Having a good credit score can impact many aspects of your financial life, including:
- Lower interest rates on loans
- Higher credit limits
- Better approval odds
- Lower insurance premiums in some states
- More financial flexibility overall
Even small differences in credit score ranges can significantly affect the total cost of borrowing over time.
Can a “Good” Score Be Enough?
Yes. While excellent credit offers the best terms, a good credit score (670–739) is often sufficient for most financial needs. Many borrowers successfully obtain mortgages, auto loans, and credit cards with scores in this range.
Improving a score beyond “good” can still be beneficial, but it is not always necessary to access credit.
Factors That Influence Your Credit Score
Credit scores are influenced by several factors, including:
- Payment history
- Credit utilization
- Length of credit history
- Credit mix
- New credit inquiries
Understanding these factors can help individuals maintain or improve their credit profile over time.
Final Thoughts
A good credit score in the U.S. generally starts at 670 and above. While higher scores provide more advantages, many financial opportunities are available to individuals with good credit. Knowing where your score falls can help you plan and manage your finances more effectively.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Credit requirements and lending criteria vary by lender and situation.