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You know your credit score matters. But what does the number actually mean? Is 680 good? Is 740 great? And what’s the difference between FICO and VantageScore?
Here’s the definitive breakdown of credit score ranges and what they mean for your financial life.
FICO Score Ranges
FICO scores are used by 90% of top lenders. The range is 300-850:
- Exceptional (800-850): You’re in the top tier. You’ll qualify for the best rates on everything — mortgages, auto loans, credit cards. About 21% of Americans are here.
- Very Good (740-799): Nearly as good as exceptional. You’ll get excellent rates and easy approvals. Lenders love you.
- Good (670-739): You’re above the national median. Most lenders consider you an acceptable borrower, though you might not get the absolute best rates.
- Fair (580-669): You’re considered “subprime.” You can still get approved for many products, but expect higher interest rates and fewer options.
- Poor (300-579): Approval will be difficult. You’ll likely need secured credit cards or credit-builder loans to rebuild. High interest rates on anything you do qualify for.
VantageScore Ranges
VantageScore (created by the three bureaus together) uses the same 300-850 range but with slightly different labels:
- Excellent (781-850)
- Good (661-780)
- Fair (601-660)
- Poor (500-600)
- Very Poor (300-499)
Credit Karma and many free tools use VantageScore. Your bank and mortgage lender almost certainly use FICO. The scores can differ by 20-40 points for the same person, which is why your “free” score sometimes doesn’t match what a lender sees.
What Score Do You Actually Need?
Here’s what different scores unlock in the real world:
To buy a house:
- FHA loan: 580 minimum (3.5% down), 500-579 (10% down)
- Conventional loan: 620 minimum, but 740+ gets the best rates
- Jumbo loan: Usually 700+
To get a good credit card:
- Premium rewards cards: 720+
- Standard cash back cards: 670+
- Secured cards: Any score (or no score)
To rent an apartment:
- Most landlords want 620+, competitive markets may want 700+
To get a car loan with good rates:
- Best rates: 720+
- Decent rates: 660+
- Subprime (high rates): Below 620
The Five Factors That Determine Your Score
FICO scores are calculated from five weighted factors:
- Payment history (35%): Do you pay on time? This is the single biggest factor.
- Credit utilization (30%): How much of your available credit are you using? Lower is better — aim for under 30%, ideally under 10%.
- Length of credit history (15%): How old are your accounts? Older is better.
- Credit mix (10%): Do you have different types of credit (cards, loans, mortgage)?
- New credit (10%): How many recent applications? Too many hard inquiries hurt.
How to Move Up a Tier
The fastest ways to improve your score depend on where you are:
- Poor → Fair: Get a secured card, make on-time payments for 6 months, keep utilization under 30%
- Fair → Good: Pay down balances to under 30% utilization, dispute any errors, avoid new applications
- Good → Very Good: Get utilization under 10%, let your accounts age, maintain perfect payment history
- Very Good → Exceptional: Time and patience. Keep doing everything right and let your history compound.
The Bottom Line
Your credit score is a snapshot, not a life sentence. No matter where you are today, consistent habits will move you up over time. Focus on the two biggest factors — payment history and utilization — and the rest will follow.