When I got my very first credit card as a college student, I didn’t think much about credit scores. I just wanted the free T-shirt the bank was giving away at the sign-up table. Like a lot of people in their early twenties, I figured as long as I didn’t miss payments, everything would be fine. Fast forward a few years—when I was applying for my first apartment without a co-signer—I realized just how much weight those three little numbers carried. My “good enough” score was suddenly the difference between getting approved quickly or scrambling for a roommate with better credit.
So, what exactly counts as a good credit score in the U.S. today? The answer isn’t as straightforward as a single number, even though lenders love boiling it down that way. It depends on the scoring model, the type of credit you’re applying for, and even shifting trends in the economy. Still, there are some benchmarks worth knowing if you want to understand where you stand and how lenders are likely to see you.
The Basics: What Credit Scores Mean
At its core, a credit score is just a number that suggests how risky (or safe) you are as a borrower. Most lenders in the U.S. rely on the FICO score, though VantageScore has been gaining ground. Both range from 300 to 850. The higher the number, the less risky you appear.
Here’s the general breakdown most lenders go by with FICO:
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300–579: Poor
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580–669: Fair
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670–739: Good
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740–799: Very Good
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800–850: Exceptional
VantageScore uses nearly identical ranges, though it sometimes weighs factors like late payments a bit differently.
Now, it’s tempting to see “good” as anything above 670 and call it a day. But in practice, that label doesn’t always tell the whole story. A 675 might technically be “good,” but a lender might still view you as on the edge. On the other hand, a 740 doesn’t just open doors—it can unlock better interest rates, higher credit limits, and lower insurance premiums.
Why “Good” Is a Moving Target
What counts as a good score can shift depending on context. For example, if you’re applying for a rewards credit card, lenders may be stricter, preferring applicants in the “very good” or “excellent” range. If you’re financing a car, dealerships may accept lower scores but balance that with a higher interest rate.
I remember when a friend of mine was buying a used Honda Civic. His credit score was in the mid-600s—technically in the “fair” zone. The dealer still approved him, but the interest rate was so high that over the life of the loan he ended up paying thousands more than someone with a “very good” score. It was a harsh lesson in how being on the lower edge of “acceptable” can cost a lot over time.
So, when we ask “what’s a good credit score?” the better question might be: “What score do I need for the specific thing I want to do?”
Mortgage Lenders Have Their Own Rules
The housing market adds another wrinkle. If you’ve looked into buying a home recently, you’ve probably seen headlines about rising interest rates. What doesn’t always make the headlines is how credit scores tie into that equation.
For most conventional mortgages, a score of 620 is the minimum to qualify. But having “just enough” doesn’t get you the best rates. Borrowers with scores of 740 or higher often snag significantly lower interest rates. That difference, even if it’s just half a percent, can mean tens of thousands of dollars over the course of a 30-year mortgage.
Government-backed loans like FHA and VA mortgages tend to be a little more flexible. FHA loans, for example, technically allow scores as low as 500 if you can put down a 10% down payment. But realistically, most lenders want to see something above 580 or 600. Again, the label “good” is relative.
Credit Scores and Everyday Life
It’s not just about loans, though. Credit scores seep into everyday financial decisions in ways that sometimes feel unfair. Insurance companies in many states use credit-based insurance scores to determine premiums. Landlords often check credit before approving tenants. Even some employers run credit checks, though they usually need your permission to do it.
A “good” score, then, isn’t just about borrowing money. It’s about creating smoother paths in areas of life you might not expect.
The Anatomy of a Good Score
Understanding what makes up your credit score helps explain why one person sits at 720 while another is stuck at 650. With FICO, the breakdown looks like this:
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Payment history (35%): Have you paid your bills on time? Even one missed payment can linger for years.
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Amounts owed (30%): How much debt are you carrying relative to your available credit? High utilization (like maxing out cards) drags scores down.
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Length of credit history (15%): How long you’ve had accounts open matters. Closing old cards can sometimes backfire.
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Credit mix (10%): Lenders like to see a variety—credit cards, installment loans, maybe even a mortgage.
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New credit (10%): Opening too many accounts at once can signal risk.
Knowing this doesn’t magically raise your score, but it does point to where your energy is best spent. For instance, paying down credit card balances can sometimes bump your score faster than anything else.
When “Good Enough” Isn’t Enough
There’s a subtle trap in aiming for just “good.” Let’s say your score is 685. You’re technically in the good range, but lenders may still charge you higher rates compared to someone in the mid-700s. Over time, that gap adds up in real money.
I fell into this trap myself when refinancing student loans. My score was hovering around 690. The refinance company approved me, but my interest rate wasn’t as low as I hoped. Out of curiosity, I ran the numbers: if my score had been 40 points higher, I would’ve saved thousands over the life of the loan. That stung.
How Americans Stack Up
To put all of this in perspective, the average FICO score in the U.S. was about 717 in 2024. That’s actually higher than it was a decade ago, suggesting Americans, on average, have gotten better at managing credit—or at least more cautious after events like the 2008 financial crisis and the pandemic.
But averages can be deceiving. Younger people, especially those just starting out, often have lower scores simply because they don’t have much credit history. Meanwhile, people with long-established accounts may have higher numbers even if their habits aren’t perfect.
The Emotional Side of Credit Scores
It’s worth pausing here. Numbers aside, credit scores carry a heavy emotional weight. Many of us tie our self-worth to that three-digit number, which can create a spiral of stress and shame. I’ve been there—refreshing my credit monitoring app more often than I’d like to admit, as if watching it would magically improve things.
The truth is, a credit score isn’t a moral judgment. It’s not about being “good” or “bad” as a person. It’s a snapshot of financial behavior, sometimes influenced by factors beyond your control—like medical debt or a sudden job loss. That perspective doesn’t erase the consequences, but it helps separate your identity from your score.
Steps to Go from “Good” to “Great”
If you’re sitting in the “good” range and want to push higher, here are a few practical moves:
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Lower your utilization: Aim to keep credit card balances under 30% of your limit—under 10% is even better.
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Pay early, not just on time: Even making payments a few days ahead can help avoid accidental late fees.
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Don’t close old accounts: That old card from college? Keeping it open helps your average account age.
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Mix it up: If you only have credit cards, consider a small installment loan (like a credit-builder loan).
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Limit new applications: Space them out so multiple hard inquiries don’t ding your score.
It sounds basic, but the consistency matters more than quick tricks. Think of it as slow, steady training for your financial health.
So, What’s “Good” Today?
If we boil it down, most lenders today consider 670 or above to be a good credit score in the U.S. But aiming for the mid-700s is where you really start to see benefits—lower interest rates, higher approvals, and fewer headaches when it comes to big purchases.
The number that counts as “good” isn’t static, though. Economic shifts, lending standards, and even generational trends can tilt the balance. What feels “good enough” today may be just average tomorrow.
Final Thoughts
When I think back to that free T-shirt I grabbed in college, I laugh at how little I understood about credit. Now, I see it less as a score to chase and more as a tool that quietly shapes opportunities in life. Having a “good” credit score doesn’t guarantee financial freedom, but it does make the path smoother.
If you’re somewhere in the 600s, don’t panic—it’s not a permanent state. Scores evolve, just like financial habits do. And if you’re already in the 700s, don’t get complacent. A good score is valuable, but maintaining it requires the same kind of care it took to build in the first place.
At the end of the day, a “good” credit score in the U.S. today is less about bragging rights and more about what doors it opens for you. And if you’re still unsure where you stand, maybe it’s time to check—not to stress over the number, but to use it as a compass pointing toward where you want your financial future to go.