Credit Score Ranges: What's Good, Fair, and Bad?

Your credit score is a three-digit number that lenders use to evaluate the risk of lending to you. It determines whether you get approved for credit cards, mortgages, auto loans, and apartments — and, critically, what interest rate you pay. Understanding where your score falls within the standard ranges is the first step toward making informed decisions about your financial life.

Both FICO and VantageScore, the two dominant scoring models in the United States, use a scale from 300 to 850. The higher your score, the less risk you represent to lenders, and the better the terms you will receive. In this guide, we break down every credit score range, what each means in practical terms, and how different ranges translate to real-world interest rates on mortgages, auto loans, and credit cards.

If you are not sure how credit scores work or what factors influence your number, start with those foundational guides first. This article assumes you know your score (or can check it for free) and want to understand what it means.

Understanding the Credit Score Scale

The FICO score, which is used in over 90% of lending decisions according to FICO, ranges from 300 to 850. This range is divided into five tiers, each representing a different level of creditworthiness. VantageScore uses the same 300-850 scale but with slightly different tier boundaries (which we will cover below).

Your position on this scale is not static. It changes as your financial behavior changes — paying bills on time moves you up, missing payments moves you down, and running up credit card balances can drop your score within a single billing cycle. The five factors that determine your credit score are payment history (35%), credit utilization (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%).

The Five Credit Score Ranges

Poor Credit: 300-579

A score between 300 and 579 is classified as "Poor" by FICO. Approximately 16% of the U.S. population falls into this range, according to Experian's 2023 consumer credit review. Consumers in this range face serious difficulty obtaining credit.

What to expect: Most unsecured credit card applications will be denied. Mortgage applications will almost certainly be rejected by conventional lenders (although FHA loans may be available with a score of 500-579 if you can make a 10% down payment). Auto loans may be available, but only through subprime lenders at interest rates that can exceed 20% APR. Landlords commonly reject rental applications from applicants in this range, and utility companies may require security deposits.

How to improve: If you are in this range, the most effective starting points are disputing any errors on your credit report (the FTC found that 1 in 5 consumers had errors on their reports in its landmark 2012 study), paying down outstanding balances, and establishing positive payment history with a secured credit card. Read our full guide on what credit repair is and how it works.

Fair Credit: 580-669

The "Fair" range covers scores from 580 to 669. About 17% of consumers fall into this bracket, according to Experian data. Lenders consider borrowers in this range to be "subprime," meaning higher risk.

What to expect: You will qualify for more products than those in the Poor range, but at significantly higher costs. FHA mortgage loans become available at 580+ with just 3.5% down. Credit cards will typically carry higher APRs (often 22-29%) and lower credit limits. Auto loan rates will be well above prime. You may also face higher insurance premiums in states that allow credit-based insurance scoring.

How to improve: The jump from Fair to Good (670+) is achievable within 6-12 months for many consumers. Focus on keeping credit utilization below 30%, making every payment on time, and addressing any collection accounts or errors.

Good Credit: 670-739

A score of 670 to 739 is considered "Good." This is close to or slightly above the national average — the average FICO score in the U.S. reached 715 in 2023, according to Experian. Roughly 21% of consumers fall into this range.

What to expect: Most credit products are available to you. Conventional mortgages are attainable (minimum 620 for most lenders, but 670+ gets better rates). Credit card approvals come with reasonable APRs and moderate credit limits. Auto loan rates are competitive but not the lowest available. You are a mainstream borrower.

How to improve: Moving from Good to Very Good requires patience and discipline. Keep utilization low (ideally under 10%), avoid opening unnecessary new accounts, and let your credit history age. The difference between a 720 and a 740 score on a 30-year mortgage can mean thousands of dollars in savings.

Very Good Credit: 740-799

The "Very Good" range spans 740 to 799. About 25% of consumers achieve scores in this tier. Lenders view these borrowers as very low risk.

What to expect: You qualify for some of the best interest rates available. Premium credit cards with travel rewards, cash back bonuses, and sign-up offers become accessible. Mortgage rates will be near the lowest advertised rates. Auto loan rates are favorable. Insurance premiums, where credit scoring is used, will be competitive.

How to improve: Moving from Very Good to Exceptional is mainly about time and consistency. Keep doing what you are doing — maintain low utilization, a long credit history, a diverse credit mix, and a spotless payment record.

Exceptional Credit: 800-850

Scores between 800 and 850 are rated "Exceptional." Approximately 21% of consumers achieve this elite tier. These borrowers represent the lowest risk to lenders.

What to expect: You receive the absolute best terms the market offers. The lowest mortgage and auto loan rates, the highest credit limits, instant approvals for premium products, and maximum negotiating leverage. The practical difference between an 800 and an 850 is minimal — once you cross 800, you have already unlocked the best tier of pricing.

How Credit Score Ranges Affect Interest Rates

The real cost of a lower credit score shows up in interest rates. Even a small difference in your rate can translate to thousands — or tens of thousands — of dollars over the life of a loan. Below are approximate interest rate ranges based on credit score tiers, drawn from publicly available rate data from lenders and rate-tracking services. These are representative averages and will vary by lender, loan term, and market conditions.

Mortgage Rates by Score Range

Mortgage lenders are particularly sensitive to credit scores because of the large loan amounts and long terms involved. Data from myFICO's Loan Savings Calculator shows that borrowers with lower scores can pay dramatically more over the life of a 30-year mortgage.

The difference between a 760+ score and a 620 score on a $300,000 mortgage can mean more than $100,000 in additional interest over 30 years. This is why improving your score before applying for a mortgage is one of the most financially impactful moves you can make.

Auto Loan Rates by Score Range

Auto loan rates vary widely by credit tier. According to Experian's State of the Automotive Finance Market reports, the gap between super-prime and deep subprime auto loan rates regularly exceeds 10 percentage points.

Credit Card APR by Score Range

Credit card APRs are less standardized than mortgage or auto loan rates because card issuers consider many additional factors. However, the general trend is clear: better scores mean lower rates and better card offers.

Where Does the Average American Stand?

The average FICO score in the United States has been trending upward over the past decade. According to Experian's annual reports, the average score rose from 689 in 2013 to 715 in 2023. This means the average American has a "Good" credit score.

However, averages vary significantly by age group. Older consumers tend to have higher scores due to longer credit histories. According to Experian's 2023 data:

• Generation Z (18-26): Average score around 680
• Millennials (27-42): Average score around 690
• Generation X (43-58): Average score around 709
• Baby Boomers (59-77): Average score around 745
• Silent Generation (78+): Average score around 761

Scores also vary by state, with Minnesota, Wisconsin, and Vermont consistently ranking among the highest average scores, and Mississippi, Louisiana, and Alabama among the lowest, according to Experian's data.

FICO vs VantageScore Ranges

While both FICO and VantageScore use the 300-850 scale, they define their ranges differently. Most lenders use FICO scores (FICO claims over 90% of top lenders use their scores), but VantageScore is commonly provided by free credit monitoring services like Credit Karma. Here is how the two compare:

This difference matters. If Credit Karma shows your VantageScore as 660 and labels it "Fair," your FICO score — the one most mortgage lenders actually use — could be somewhat different. It is always worth checking your actual FICO score before applying for major credit. Learn more in our guide to how FICO and VantageScore differ.

How to Move Up to the Next Range

Regardless of where you currently stand, the strategies for improving your credit score are the same. The specific actions just vary in urgency and impact depending on your starting point.

If you are in the Poor range (300-579): Focus on addressing the factors dragging your score down most aggressively. Dispute any errors on your credit report — this is your legal right under Section 611 of the Fair Credit Reporting Act (15 U.S.C. § 1681i). Get a secured credit card and use it responsibly. If you have collections, consider whether disputing inaccuracies or negotiating settlements makes sense.

If you are in the Fair range (580-669): Keep credit utilization below 30% — ideally below 10%. Make every payment on time without exception. Avoid opening multiple new accounts at once, as each application generates a hard inquiry. Consider becoming an authorized user on a family member's well-managed account.

If you are in the Good range (670-739): Maintain your good habits and focus on the factors you can still improve. Lowering utilization, increasing your credit mix (if appropriate), and simply letting your accounts age will naturally push your score higher.

If you are in the Very Good range (740-799): You are already doing well. The keys are patience and consistency. Avoid large balance increases, keep all payments current, and resist the temptation to open accounts you do not need.

Key Takeaways