# What is a 'Good' Credit Score, Anyway?
Credit scores range from 300 to 850, but lenders define "good" differently depending on the loan type. Understanding where you stand matters because your score directly affects loan approval odds and the interest rates you pay.
Most credit bureaus use the FICO scoring model, which breaks down as follows: 300-669 is considered poor to fair, 670-739 is good, 740-799 is very good, and 800-850 is excellent. However, lenders often set their own thresholds. A mortgage lender might accept a 620 FICO score, while a credit card issuer might demand 700 or higher.
Your score comes from five factors. Payment history accounts for 35 percent of your score, so missed payments hurt badly. Credit utilization, or how much of your available credit you use, makes up 30 percent. Keeping this below 30 percent helps your score. Length of credit history contributes 15 percent, credit mix another 10 percent, and new credit inquiries the final 10 percent.
For practical purposes, aim for at least 670 to call yourself in the "good" range. With a score above 740, you qualify for better rates on mortgages, auto loans, and credit cards. Scores below 620 mean higher interest rates and more frequent rejections.
Building credit takes time. Start by paying every bill on time, even if you only pay minimums. Request credit limit increases to lower your utilization ratio. Diversify your credit by mixing credit cards, installment loans, and other account types. Avoid closing old credit card accounts, as length of history matters.
Check your credit report annually through AnnualCreditReport.com, the only free official source. Look for errors