What’s a Good Credit Score? Credit Score Ranges Explained
The NFCC often receives questions from readers about their money challenges. We answer common questions in our Ask an Expert series to help readers find the information they need.
Question: What’s a good credit score?*
Answer: Dear Reader,
Defining good credit can be challenging, since there’s no set number that qualifies as a “good” credit score.
For many creditors, a score in the 700s (out of 850 total points) is considered good. But the standard varies a bit depending on the credit bureau you consult, the website you use to view your score, or even the creditor evaluating your application.
Since each creditor has their own standard, it’s less helpful to focus on a specific score, and more helpful to focus on the score range that qualifies you for the best products available. Here’s a breakdown on what makes a good credit score.
What is a good FICO score?
FICO is the company that invented the credit score, and FICO scores are the most widely used credit scores on the market. So, let’s take a look at how FICO defines good credit:
- 850-800: Exceptional
- 799-740: Very good
- 739-670: Good
- 669-580: Fair
- 579-350: Poor
As you can see, you don’t need a perfect 850 credit scores to have good credit. In fact, if your scores are above 715, you’re ahead of the pack. According to a recent FICO report, the average credit score for U.S. adults fell from 718 in 2023 to 715 in 2025.
If your credit scores are below 715, it doesn’t automatically mean your credit is bad. It just means you may want to improve your scores so you can qualify for better loans, credit cards, job opportunities or apartments in the future.
What credit scores do you need for the best loans and credit cards?
The higher your credit scores are, the more likely you are to be approved for loans and credit cards you want. Higher credit scores also allow you to save more money on these products by being approved with lower interest rates and fees.
When it comes to one of the biggest financial transactions you’re likely to make — taking on a 30-year mortgage — you usually need scores above 740 in order to qualify for the best rates. According to FICO’s Loan Savings Calculator, a score above 760 currently qualifies for an average mortgage APR of 6.44%, while a score of 640 qualifies for 7.04%.
How much of a difference does that make in your cost of borrowing? On a $300,000 mortgage, the higher score would save you $120 a month on your payment and a massive $43,128 in total interest charges.
How to improve your credit scores: Steps that work
If you’re disappointed with your credit scores, keep in mind they can always change over time. Here are some of the best steps you can take to improve your credit:
- ull your free credit reports from AnnualCreditReport.com and review them to fix errors and see where you can make improvements.
- Always pay at least the minimum due on your credit cards and loans by the monthly due date.
- Avoid letting bills go to collections.
- Reduce your credit card balances, and aim to pay them off in full each month.
- If you have a loved one with good credit scores, have them add you as an authorized user to one or more of their credit cards.
Additionally, you can meet with an NFCC-certified credit counselor to learn more about how to gain points. The counselors who work with our NFCC-member agencies are trained to thoroughly review your credit reports, and they can offer personalized tips on how to achieve the good credit you’ve been striving for.
Sincerely,
Bruce McClary, Vice President of Communications
Bruce McClary is the Vice President of Communications for the National Foundation for Credit Counseling® (NFCC®). Based in Washington, D.C., he provides marketing and media relations support for the NFCC and its member agencies serving all 50 states and Puerto Rico. Bruce is considered a subject matter expert and interfaces with the national media, serving as a primary representative for the organization. He has been a featured financial expert for the nation’s top news outlets, including USA Today, MSNBC, NBC News, The New York Times, the Wall Street Journal, CNN, MarketWatch, Fox Business, and hundreds of local media outlets from coast to coast.
