What Is Considered a Good Credit Score in 2024
Learn the credit score ranges that matter: 670–739 is good, 740+ is very good. See how scores affect loans, rates, and your financial future.
Key Takeaways
- A good credit score is 670–739 according to FICO, the scoring model used by 90% of lenders. Scores below 670 are fair or poor; 740+ is very good to excellent.
- A 100-point increase can save $3,000–$6,000 on a 5-year auto loan, depending on loan amount. The difference between good (700) and excellent (800+) on a mortgage can mean $50,000+ in lifetime interest savings.
- Payment history (35%) and credit utilization (30%) account for 65% of your score. Most people stuck below 670 fail on one or both of these fundamentals.
- You can move from fair (620) to good (670) in 6–12 months with consistent on-time payments and keeping credit card balances below 30% of your limits.
- A good score qualifies you for most credit products, but not the best rates. Lenders reserve their lowest APRs for 740+.
Credit Score Ranges: What the Numbers Actually Mean
Your credit score is a three-digit number between 300 and 850 that tells lenders how likely you are to repay borrowed money on time. The FICO Score, created by Fair Isaac Corporation, is used by approximately 90% of lenders in the US. Equifax, Experian, and TransUnion (the three major credit bureaus) each calculate your FICO score independently, so you may see slightly different numbers from each bureau.
Here's how FICO breaks down the ranges:
| Score Range | Rating | What It Means |
|---|---|---|
| 800–850 | Excellent | Best rates on all products; lowest APRs and highest credit limits |
| 740–799 | Very Good | Competitive rates; approved for most loans and cards |
| 670–739 | Good | Qualifies for most credit products; not the best rates |
| 580–669 | Fair | Approval possible; higher interest rates and fees; limited options |
| 300–579 | Poor | High rejection rates; secured cards/loans only; predatory terms |
What is considered a good credit score is the 670–739 range. This score signals to lenders that you're a manageable risk: you've likely paid most bills on time, you're not maxing out credit cards, and you have some credit history. But you're not in the top tier, so lenders won't offer you their most competitive rates.
The distinction matters in dollars. A borrower with a 670 score paying 6.5% APR on a $25,000 auto loan will pay roughly $4,300 in interest over five years. The same borrower at 750 might pay 4.8% and save $1,200. Scale that across a mortgage, and the gap widens dramatically.
How Credit Bureaus Calculate Your Score (and Why It Matters)
FICO scores are built from five components, each weighted differently:
| Component | Weight | What It Measures |
|---|---|---|
| Payment History | 35% | On-time payments on all accounts over 24+ months |
| Credit Utilization | 30% | Total debt vs. total available credit (aim for <30%) |
| Length of Credit History | 15% | Age of oldest account and average age of all accounts |
| Credit Mix | 10% | Variety: credit cards, auto loans, mortgages, etc. |
| New Credit Inquiries | 10% | Hard inquiries and recently opened accounts |
The payment history component is the heaviest lifter. A single 30-day late payment can drop your score 100+ points if you were previously in the 740+ range. For someone at 680, a late payment might drop them 50–70 points. The damage fades over time: a late payment from two years ago hurts less than one from two months ago.
Credit utilization is the second pillar and the easiest to control immediately. If you have three credit cards with $5,000 limits each ($15,000 total available), and you carry $8,000 in balances, your utilization is 53%. This is too high. Most scoring models reward utilization below 10%, and definitely below 30%. The good news: paying down balances improves your score within 30 days, the next time the bureaus update your file.
Length of credit history rewards longevity. Closing old accounts hurts here because it lowers your average account age. Your oldest account should stay open, even if you don't use it.
Credit mix means having different types of credit (revolving credit like cards, installment loans like auto loans). You don't need to take out unnecessary debt to improve this—it's a minor factor and only matters once the other components are solid.
New inquiries are the least impactful. A hard inquiry (when you apply for credit) drops your score 5–10 points temporarily. Multiple inquiries within 45 days for the same type of credit (like mortgage shopping) count as one inquiry, so don't fear rate shopping.
Good vs. Excellent: Where You Need to Be for Major Loans
A good credit score (670–739) qualifies you for most financial products, but the rates and terms vary sharply depending on whether you're in the good range or the excellent range (740+).
Mortgages
A conventional mortgage requires a minimum 620 FICO score. However, that's the floor. Here's what you actually pay:
- 620–639 score: 7.2% APR (example rate as of late 2024)
- 670–739 score (good): 6.8% APR
- 740–759 score: 6.4% APR
- 760+ score (excellent): 6.2% APR
On a $300,000 mortgage over 30 years, the difference between 6.8% and 6.2% is roughly $60,000 in total interest paid. That's why moving from good to excellent is worth the effort before you buy a home.
FHA loans (government-backed, for first-time buyers or lower down payments) accept scores as low as 580, but you'll pay mortgage insurance premiums (PMI) on top of a higher interest rate.
Auto Loans
Most lenders approve borrowers with scores 620+. Here's the typical breakdown:
- 620–659 score: 8.2% APR
- 670–709 score (good): 6.1% APR
- 710–749 score: 5.2% APR
- 750+ score (excellent): 4.1% APR
On a $25,000 five-year auto loan, the difference between 6.1% (good) and 4.1% (excellent) is roughly $2,500 in interest savings. A good score gets you approved and saves you money versus fair or poor credit, but you're still not at the best rate.
Credit Cards
A good score (670+) qualifies you for standard unsecured credit cards with reasonable terms: 18%–24% APR, $500–$2,000 credit limits, and minimal annual fees. Excellent credit (740+) unlocks premium cards with 0% intro APR offers, travel rewards, concierge services, and no annual fees.
Below 670, you're limited to secured cards (requiring a cash deposit) or subprime cards with 25%+ APR and annual fees of $50–$100.
How a Good Credit Score Saves You Money on Interest Rates
The compounding effect of interest rates is why credit score ranges matter so much. Here's a worked example:
Scenario: $200,000 mortgage, 30-year term
- Fair credit (650 score): 7.1% APR = $473,000 total paid (interest: $273,000)
- Good credit (700 score): 6.5% APR = $449,000 total paid (interest: $249,000)
- Excellent credit (780 score): 6.0% APR = $431,000 total paid (interest: $231,000)
The difference between good and excellent credit is $18,000 in interest savings over 30 years. Between fair and good, it's $24,000. That's real money.
Auto loan example: $30,000, 5-year term
- Fair credit (650): 7.8% APR = $36,600 total paid
- Good credit (700): 5.9% APR = $34,200 total paid
- Excellent credit (780): 4.2% APR = $32,300 total paid
A good score saves $2,400 versus fair. Excellent saves another $1,900.
These aren't hypothetical numbers—they're based on actual lender pricing tiers. The reason lenders charge less for higher scores is actuarial: people with excellent credit default less often. You're statistically safer, so they price the loan accordingly.
Common Mistakes That Keep People Stuck Below 670
If your score is stuck in the fair range (580–669), one of these patterns is almost certainly the culprit.
Mistake 1: Carrying High Credit Card Balances
Many people think they need to carry a balance to build credit. This is false. Carrying a balance doesn't help your score—it hurts it via high utilization.
If you have $10,000 in available credit and $7,000 in balances, you're at 70% utilization. This alone can keep you from breaking 670. The fix is simple: pay down balances to under 30% of your limit, even if you pay the full statement balance monthly (which you should).
Mistake 2: Late Payments, Even Small Ones
A single 30-day late payment stays on your credit report for seven years. If you've had multiple lates in the past two years, your score will struggle to reach 670. The solution isn't quick, but it's mechanical: don't miss another payment. After 24 months of on-time payments, your score will climb noticeably.
Mistake 3: Too Many New Accounts or Hard Inquiries
Opening three new credit cards in six months triggers multiple hard inquiries and adds new accounts with zero history. Each new account lowers your average account age (a scoring factor) and the inquiries ding you temporarily. If you're trying to build credit, space out applications by at least 3–6 months.
Mistake 4: Closing Old Credit Cards
Closing your oldest credit card to "reduce temptation" or "simplify" backfires. It lowers your available credit (raising utilization) and shortens your average account age. Keep old cards open with zero balance and minimal (or no) annual fees.
Mistake 5: Ignoring Errors on Your Credit Report
Roughly 1 in 5 credit reports contain errors, according to the Federal Trade Commission. A fraudulent account, a late payment that wasn't actually late, or a paid-off debt still showing as active can suppress your score. Pull your free credit report from AnnualCreditReport.com (the official site) and dispute any errors with the bureaus.
Step-by-Step: How to Move From Fair to Good Credit
If your score is 580–669, here's a concrete path to 670+ in 6–12 months.
Step 1: Get Your Credit Report (This Week)
Visit AnnualCreditReport.com and request your free report from all three bureaus (Equifax, Experian, TransUnion). You get one free report per bureau per year. Review for errors: accounts you didn't open, late payments you didn't make, or accounts marked unpaid that you paid.
Step 2: Dispute Any Errors (Week 1–2)
If you find errors, file a dispute with the bureau directly via their website or by mail. Include documentation (payment receipts, account statements). The bureau has 30 days to investigate. Removing a false late payment or fraudulent account can boost your score 50–100 points.
Step 3: Pay Down Credit Card Balances to <30% (Week 2–4)
List all credit cards and their limits. Calculate your total utilization. If it's above 30%, prioritize paying down the highest-utilization cards first (this has the biggest impact on your score). You don't need to pay them off entirely—just get below 30%.
For example: You have three cards with limits of $2,000, $3,000, and $5,000 (total $10,000). You carry $6,500 in balances (65% utilization). Pay $2,000 toward the cards, bringing balances to $4,500 (45% utilization). Better, but still high. Pay another $1,500, getting to $3,000 (30% utilization). This single step can add 20–50 points within one billing cycle.
Step 4: Set Up Autopay for All Accounts (Week 4)
Late payments are the biggest score killer. Set up automatic payments for at least the minimum on every credit card, loan, and bill. Most lenders allow this via their website for free. This removes human error.
Step 5: Don't Apply for New Credit (Months 1–6)
Pause new credit applications. Each hard inquiry and new account lowers your score short-term. Wait until you've hit 670+ and stabilized.
Step 6: Monitor Progress (Monthly)
Check your score monthly using a free service like Credit Karma, NerdWallet, or your bank's credit monitoring tool. These use VantageScore (a competitor to FICO) or FICO, and they're free. You should see movement within 30–60 days if you've paid down balances and made on-time payments.
Step 7: Build Positive History (Months 6–12)
Keep balances low, make all payments on time, and don't close old accounts. After 6–12 months of this, most people see scores move from fair (620–669) to good (670–739).
Frequently Asked Questions
Is 700 a good credit score?
Yes. A 700 score falls in the good range (670–739) and qualifies you for most loans and credit cards, though not the best rates. Lenders typically offer better terms at 740+.
What credit score do I need to buy a house?
Most conventional mortgages require 620+ minimum, but 740+ gets you the lowest rates. FHA loans accept 580+. A good score (670–739) qualifies you but may cost 0.5–1% more in interest than excellent credit.
How much does a 50-point credit score increase save on a car loan?
Moving from 650 to 700 can save $1,500–$3,000 over a 5-year auto loan, depending on loan amount and lender. A 100-point jump saves $3,000–$6,000.
Can I get a credit card with a 650 credit score?
Yes, but only secured cards or subprime options with high fees and interest rates (18%–25%+). A good score (670+) unlocks unsecured cards with better terms and no deposit requirement.
What's the difference between good and excellent credit?
Good credit (670–739) qualifies you for most products. Excellent (800+) gets you the lowest rates and best terms. The jump from good to excellent can save thousands over the life of a mortgage or auto loan.
How long does it take to build a good credit score?
6–12 months of on-time payments and low credit utilization can move you from fair to good. Building from scratch to 670+ typically takes 1–2 years, depending on starting point.
Does checking my credit score hurt it?
No. Checking your own score (soft inquiry) doesn't affect it. Only hard inquiries from lenders when you apply for credit cause a small, temporary dip.
How often should I check my credit score?
Monthly is reasonable if you're actively working to improve it. Once you're stable at 740+, quarterly or annually is sufficient. Use free services like Credit Karma or your bank's monitoring tool.