Credit scores usually range from 300-850. The goal is to get to 670 to be in the good range for your credit score. Once you get to 740, your credit is very good. The ultimate credit score is 800 and above, which will help you qualify for the best rates and terms for loans.
Credit scores range from 300 to 850. Within that range, there are five brackets that define the quality of your credit score, ranging from poor to excellent. Lenders and credit card companies use your credit score to determine your creditworthiness, which will dictate your interest rates, credit line, and more. Review Benzinga’s credit score chart to see how your credit stacks up and where to place your financial goals.
What Is a Credit Score?
A credit score is a numerical rating that shows your ability to meet your financial obligations. Credit bureaus calculate your credit score by combining your credit history and financial status. Lenders and other financial companies use this calculation to determine whether you can repay a loan, such as a mortgage or credit card bill. Landlords also use your credit score to determine whether you are a trustworthy tenant. Insurance companies use your credit score as a factor to determine your rates.
Many different organizations calculate your credit score using different scales and putting more or less weight on various factors. They also pull from different data sources on varying timelines. Some organizations that calculate your credit score include VantageScore and FICO. So when you apply for an auto loan, don’t be shocked if the lender tells you a different number from what you see in your credit card app or other financial data source.
What Are the Credit Score Ranges?
Credit scores include five ranges, each communicating to lenders your ability to repay a loan or manage a line of credit. Look at this range to see what each category means.
- 800-850 (Excellent): This is the ultimate goal for your credit. Lenders will view you as low-risk, meaning you can secure the best rates and loan terms.
- 740-799 (Very Good): While this isn’t the top of the range, it still communicates to lenders that you are responsible and have a positive credit history. You are unlikely to face barriers to loan qualification.
- 670-739 (Good): Borrowers with good credit scores qualify for most loans and credit cards. Only lenders with strict borrower requirements will prohibit you from getting a loan or receiving a credit card approval.
- 580-669 (Fair): At this point, you might be classified as a subprime borrower. That’s because lenders view you as a higher risk. Qualifying for new credit will be challenging.
- 300-579 (Poor): Borrowers in this category struggle to get approval from lenders. When your credit is in this range, you should be taking affirmative action to raise your credit score before opening new lines of credit.
FICO Score Ranges
FICO uses the following credit range chart to determine your scores and what those mean to lenders.
| Credit Score Range | Credit Rating | Description |
| 300-570 | Poor | Credit scores in this range are below average and borrowers with these scores are considered high-risk. |
| 580-669 | Fair | Although this is below the average American’s credit score, borrowers can still get a loan, though their interest rates will be higher. |
| 670-739 | Good | This is considered average credit and most lenders accept borrowers in this category, though you might not get the best rates possible. |
| 740-799 | Very Good | If your credit is in this range, it is above average for U.S. consumers, and lenders will view you as a dependable borrower. |
| 800-850 | Exceptional | With exceptional credit, you can qualify for the best loan rates and terms and choose from a wide range of lenders or credit card companies. |
VantageScore Ranges
| Credit Score Range | Credit Rating | Description |
| 300-600 | Subprime | You’ll struggle to get the best lines of credit, so you should work to increase or repair your credit before applying for new loans. |
| 601-660 | Near Prime | Many lenders will work with you at the near prime rating but working to raise your score to prime is a wise move. |
| 661-780 | Prime | This is where the average person’s credit sits and ensures you have access to most lenders and credit card companies. |
| 781-850 | Superprime | You’ll have the best chance of getting the best terms when your credit is in the superprime range. |
What Is the Highest Credit Score?
The highest score you can get on the most widely accepted credit scales is 850. But only about 1% of the population has an 850 credit score.
Some FICO models go as high as 900, but those are more commonly used for auto loans or other specific use cases. You likely won’t see those numbers as a consumer when pulling your credit report or viewing your score in an app, such as what your credit card company provides.
What Is a Good Credit Score?
A good credit score is 670 or more when calculated on the FICO scale and 661 or more on the VantageScore scale. These scores signal to lenders that you are a low risk to loan money to and that you will likely repay your debts.
How Are Credit Scores Calculated?
Credit scores are calculated using several factors that include historical details and current details, including:
- Bill pay history (on-time, late, default)
- Outstanding debt amounts
- How many loans you currently have
- Types of current loans
- Duration of existing loan accounts
- Credit utilization (e.g., if you have a $10,000 line of credit on your credit card, you should use 30% or less, which would be $3,000 per month)
- New applications for credit
- History of debt sent to collections, home foreclosures or bankruptcy filings
- Age of credit
How to Improve Your Credit Scores
If you want to raise your credit score, consider using these tips:
- Make on-time payments
- Reduce your credit utilization to less than 30% or increase your credit card limit
- Ask a family member with excellent credit to add you to their credit card
- Flag incorrect information with the major credit bureaus
- Avoid applying for new lines of credit too often
- Reduce debt or consolidate it when possible
- Opt for a secured credit card to build credit when you can’t qualify for other credit card types
Understanding One of the Most Influential Financial Factors
Your credit score can dictate your ability to purchase a home or car or qualify for the most rewarding credit cards. Learning more about what your credit score is and what it means can help you prepare for credit applications and set you up for the greatest financial success.
About Rebekah Brately
Rebekah Brately is an investment writer passionate about helping people learn more about how to grow their wealth. She has more than 12 years of writing experience, focused on technology, travel, family and finance. Her work has been published in Benzinga, Hearst Bay Area, FreightWaves and Dallas Observer publications.