What Is a Good Credit Score? Complete Guide (2025 Ranges)

A good credit score is between 670 and 739.

“But what does that actually mean for me?”

Fair question. Credit score ranges sound simple until you realize there are two different scoring models, five different credit tiers, and your score changes depending on what you’re applying for.

This article explains exactly what credit score you need to buy a house, get approved for a loan, and what’s considered good for your age.

So, let’s get right into it!

Credit Score Ranges Explained (FICO &VantageScore)

Two companies calculate credit scores: FICO and VantageScore.

Both scoring models use a range of 300-850. Here’s how they break down:

Bottom line: If your FICO score is 670 or above, you’re in good shape Anything above 740 is very good, and 800+ is excellent.

The average American credit score is 715 (as of 2025) which falls in the ‘good’ range.

What Credit Score Do You Need?

‘Good’ is relative. What matters is: good enough for what?

You can qualify for most things with a score in the 600s. But you’ll save thousands in interest with a score above 740.

What’s a Good Credit Score for Your Age?

Okay, so this is something most people worry about but regardless of how old you are, a score from the mid 600s to mid 700s means you’re in the ‘good’ range.

If you're 22: A score of 680 is right on track. Anything above 650 is solid for your age.

If you're 20: You're just starting. A score of 650-680 shows you're building good habits.

If you're 30+: Aim for 700+. You'll qualify for better rates on mortgages and auto loans.

Don't stress if you're below average for your age. Credit scores aren't a competition—they're a tool.

What Makes Up Your Credit Score?

FICO calculates your score using five factors:

1. Payment History
2. Credit Utilization
3. Length of Credit History
4. Credit Mix
5. New Credit

Now, let’s talk about how much each of them matter to your score and how.

Focus your energy on payment history and utilization—they're 65% of your score.

How to Improve Your Credit Score Fast

You can't build an 800 credit score overnight. So don’t think “fast” , think about the factors that will gradually help you improve your credit score within a month.

1. Pay Down Credit Card Balances (Impact: High)

This is the fastest way to boost your score.

Example: You have a $5,000 limit with a $2,000 balance. That's 40% utilization (bad). Pay it down to $1,500 or less (30% utilization) and your score jumps within one billing cycle.

Pro tip: Pay down balances before your statement closes, not just before the due date. Your balance when the statement generates is what gets reported.

2. Set Up Autopay for Everything (Impact: Critical)

One missed payment can drop your score 100 points and stay on your report for 7 years.

Action: Set up autopay for at least the minimum payment on every account. You can always pay extra manually.

3. Request a Credit Limit Increase (Impact: Medium)

Higher limits = lower utilization = better score.

You can do this by calling your credit card company or request online. Many approve increases without a hard inquiry. Do this every 6-12 months.

Warning: Don't spend more just because you have higher limits. That defeats the purpose.

4. Become an Authorized User (Impact: Medium)

If someone with good credit adds you as an authorized user on their card, their payment history can help your score.

Best for: Young adults building credit. Ask a parent or family member with a card that has a long history and low utilization.

5. Dispute Credit Report Errors (Impact: Varies)

About 1 in 5 people have errors on their credit report.

Check your reports: Visit AnnualCreditReport.com (actually free, not a scam). Review all three reports—Experian, Equifax, TransUnion.

Common errors: Accounts that aren't yours, incorrect late payments, duplicate accounts, wrong balances.

Dispute them: File disputes directly with each credit bureau. They have 30 days to investigate. If they can't verify it, they must remove it.

6. Don't Close Old Credit Cards (Impact: Medium)

Closing cards shortens your average credit age and reduces total available credit.

So, instead of closing old credit cards, keep them open, even if you don't use them. Set a small recurring charge (like Netflix) and autopay it to keep the account active.

What’s a Bad Credit Score?

A credit score below 580 is considered poor. Below 620 is considered bad by most lenders.

“What happens if I have a bad credit score?”

It’s not the end of the world, and you can use the 6 methods we’ve shared above to help improve your score. But honestly, you shouldn’t take this lightly because eventually with a bad credit score, you’re going to face issues like:

1. Pay significantly higher interest rates
2. Many landlords won’t rent to you
3. You’ll need larger secure deposits
4. Credit card applications get denied
5. Auto loans come with rates 10-15% higher than prime
6. Getting a mortgage is difficult or impossible.

If your score is below 620:

1. Get a secured credit card (requires deposit, reports to bureaus)
2. Focus on payment history, nothing else matters as much
3. Keep utilisation below 30% once you have credit
4. Be patient, rebuilding takes 3 to 6 months or even a whole year.

Is 800 a Good Credit Score?

It’s not good, it’s excellent. But, it’s not like having an 800 gets you better deals. Lenders treat 740-760 the same as 800. Once you’re above 760, you already quality for the best rates on everything.

Benefits of 800+

1. Instant approval for virtually anything
2. Bragging rights
3. That’s pretty much it

The real benefit of having 800+ credit score is financial discipline. The score is a side effect of good habits such as having perfect payment histories.

Don't stress about reaching 800. Aim for 740-760 and invest your energy elsewhere.

Common Credit Score Myths Debunked

Didn’t think we’d have to cover this, but there’s a lot of people out there who think “checking your credit hurts your score”

Well, unless your credit score has feelings and wants you to trust it, there’s no reason for it to get hurt.

Myth: Checking your credit hurts your score.

False. Checking your own score is ‘soft inquiry’ and doesn’t affect anything. Check as often as you want.

Myth: You need to carry a balance to build credit.

False. Pay your balance in full every month. Carrying a balance only costs you interest. Paying off your balance builds credit.

Myth: Closing paid-off accounts helps your score

False. Closing accounts reduces your total available credit and can shorten your credit history, Keep them OPEN.

Myth: Income affects your credit score

False. Your income isn't part of your credit score calculation. Credit reports don't even include income information.

Myth: Paying off collections removes them from your report

Partially false. Paid collections stay on your report for 7 years. However, newer scoring models (FICO 9, VantageScore 3.0+) ignore paid collections.

FAQs about What’s a Good Credit Score

What is a good credit score to buy a house?

620 is the minimum for a conventional mortgage, but you'll get much better rates with 740+. FHA loans allow scores as low as 580 with a 3.5% down payment. The difference between a 620 score and a 760 score can save you $50,000+ in interest over a 30-year mortgage. T

What is a good credit score for my age?

It depends on your age group. For 20-year-olds, 680 is solid. For 30-year-olds, aim for 690+. By your 40s, target 700+. By your 60s, the average credit score is 752.

What's a good credit score for a loan?

For personal loans, 580-600 gets you approved but with high rates (18-36%). A score of 670-699 gets you decent rates (10-20%). Above 720, you qualify for the best rates (6-12%).

What's a good credit score for a 20-year-old or 22-year-old?

The average credit score for people in their early 20s is 680. Anything above 650 is good progress for someone just starting out.

Is 800 a good credit score?

Yes, 800 is excellent—top 20% of all consumers. But financially, there's no difference between 760 and 850 when it comes to loan approvals. Both score ranges qualify for the best rates on everything.

Final Thoughts

A good credit score is 670-739 on the FICO score range. An excellent credit score is 800+. But what matters most is having a score high enough for your goals—buying a house, getting approved for loans, or renting an apartment.

Quick recap:

1. 670+ is good, 740+ is very good, 800+ is excellent
2. Payment history (35%) and credit utilization (30%) are what affect your credit score most
3. Average credit score is 715; scores increase with age
4. You need 620+ for most mortgages, 740+ for best rates
5. Check your credit report regularly for errors from the three credit bureaus
6. Pay down balances and never miss payments for fastest improvement

Building good credit takes time, but your credit score is one of the most valuable financial assets you can create. Different credit scores exist, but FICO and VantageScore credit scores are the most widely used credit scoring models. Start now to improve your score. Your future self will thank you when you apply for credit with confidence.