What is a good credit score?

While FICO and VantageScore both use a 300 to 850 credit score range, they calculate and group their credit scores differently. Considering both models, a good credit score falls between 660 and 780, while a score of 780 and above is considered great or exceptional. About 68% of Americans fall into the good and exceptional range, according to Finder’s Consumer Confidence Index.

What’s a good FICO score?

A good FICO score ranges between 670 and 739, while a very good score falls between 740 and 799. Most lenders use FICO’s credit scoring model when determining someone’s creditworthiness.

What’s a good VantageScore?

Similar to FICO, VantageScore’s newest credit models range between 300 and 850. A good, or prime, VantageScore falls between 661 and 780, while a very good, or superprime, score ranges from 781 to 850.

What’s a good credit score by age?

A credit score above 660 is a good score, no matter your age.

Your actual age does not impact your credit score, but the average age of your credit accounts does. Length of credit history makes up 15% of your FICO credit score. The older your credit history, the better.

So, while an older borrower with a long history of loans, credit cards and on-time payments may have a better credit score than a 20-year-old, your physical age has no bearing on your rating.

If you’re unsure if you have a good credit score, compare where your credit score falls against peers in your generation.

Average credit score by age

Most Americans fall between a good and excellent credit score, according to Finder’s Consumer Confidence Index. Older generations, such as gen X and baby boomers, have the most borrowers at 740 and up, which is considered “very good.”

What do lenders consider a good credit score?

Each credit scoring model is slightly different, and each industry uses specific models when determining a consumer’s creditworthiness. When you apply for credit, lenders look at one or more of your credit scores that make up your credit report.

For example, FICO has at least 16 credit versions lenders can access when deciding on credit card, mortgages and car loans. The most commonly used by lenders is FICO 8.

There’s also FICO Auto Scores, which has scores ranging from 250 to 900. These scores place more importance on your auto loan history. For mortgages, lenders generally request all your credit reports and FICO scores generated from each report. Here’s a breakdown of what that looks like:

• FICO® Score 2, or Experian/Fair Isaac Risk Model version 2
• FICO® Score 4, or TransUnion FICO® Risk Score 04
• FICO® Score 5, or Equifax Beacon 5

Benefits of having a good credit score

Whether you’re applying for a mortgage, car loan or personal loan, a strong credit profile signals to lenders that you’re a responsible borrower and less of a credit risk. Good credit borrowers are more likely to get approved for a loan or credit. You’re also more likely to get lower interest rates and APRs, saving you on the loan’s overall cost. Plus, a good credit score gives you more leverage when negotiating with lenders.

7 strategies to get a good credit score

If you’re looking to improve your credit score, there are several credit-building strategies you can take advantage of. Here are a few to get you started:

• Check your credit report regularly. Regularly monitor your credit report for inaccuracies or discrepancies and promptly dispute any errors.
• Pay your bills on time. Timely payments on bills, loans and credit cards are essential for building a positive credit history.
• Reduce credit card balances. Aim to keep your credit card balances low, ideally below 30% of your credit limit, to demonstrate responsible credit usage.
• Diversify your credit types. A mix of credit types, such as installment loans and revolving credit, can positively impact your credit score.
• Become an authorized user. Ask a family member or friend with good credit if you can be added as an authorized user on their credit card to benefit from their positive credit history.
• Explore credit-building cards. Consider credit-building cards that don’t perform a credit check during the application.
• Create a budget. Develop a realistic budget to manage your finances effectively and ensure you can meet your financial obligations.

Bottom line

Building and maintaining a good credit score helps you save money on loans and get more favorable terms in the long run. If you aren’t where you want to be, you have options to build your credit over time.

To make sure you get accurate and helpful information, this guide has been edited by Megan B. Shepherd as part of our fact-checking process.

Written by

Dhara Singh

Writer

Dhara Singh was a freelance personal finance writer at Finder specializing in loans. Formerly she was a top 10 journalist at Yahoo Finance with more than 38+ million content views where she covered retirement and mortgages. She has also written for Bankrate, and CNET and continues to write for a variety of outlets, such as Investopedia and Worth magazine. Her articles focus on equipping readers with the right information and data so they can make the most informed decisions related to their finances. Dhara previously worked as an insights analyst for Finder’s PR team, where she started the Deadliest Cities to Drive series in 2018, connecting interesting data analysis to a suite of car insurance products. When she’s not writing, Dhara coaches small business owners through her Stories to Sales programs and empowers them to use their life experiences to help other people. She has also self-published a poetry book on Amazon called Tell her She’s Lovely. Dhara holds a B.S. in Finance and Supply Chain Management from Rutgers University and a M.S. in Journalism from Columbia University. See full bio