Guide to Credit Score Ranges

Almost everyone in the U.S. (and many other countries) has a credit score, which is a three-digit number that some lenders use to evaluate whether or not to extend credit to you. In some cases, a lender will use your exact credit score as a determining factor. In other cases, they’ll group similar credit scores into a credit score range.

Different companies use different credit score ranges, but in most cases, your credit score will be grouped into one of five different categories: excellent, very good, good, fair, or poor. The better your credit score, the more likely you’re to get approved for new loans and the lower your interest rate may be if you’re approved.

What Is a Credit Score?

A credit score is a three-digit number that attempts to encapsulate your total credit history, meaning your track record of repaying debt. There are a few different companies and models that are used, but credit scores typically range from 300 on the low end to 850 on the high end. Many lenders will use your credit score to determine whether or not they want to issue you new credit.

What Are Credit Score Ranges?

Credit score ranges (sometimes referred to as a credit rating scale) are a way to group together similar credit scores. Each company that makes credit scores has its own way of grouping credit scores, but they tend to follow a similar pattern. There are usually five different credit score ranges — excellent, very good, good, fair, or poor.

Here is an example from one of the most popular rating systems, the FICO® Score:

• 300-579: Poor

• 580-669: Fair

• 670-739: Good

• 740-799: Very good

• 800-850: Exceptional or Excellent

As of March 2026, the average credit score in the U.S. was 714, which is solidly in the good range.

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How Credit Scores Are Calculated

There are a few different companies that calculate and monitor credit scores, and each one does it in a slightly different way. Typically, the various credit bureaus, such as Experian®, Equifax®, and TransUnion®, collate all sorts of information about each individual, from their payment history to their credit usage to the age of their credit accounts. They lease this information to companies such as the Fair Isaac Company (FICO), which then uses that information to calculate a FICO score.

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How to Check Your Credit Score

There are a few ways you can check your credit score. You can purchase it from a provider, or your credit card company or other financial institution may provide your credit score for free. Or you may use a free credit scoring website or other service to get your score.

Your credit score updates regularly as the underlying information that the credit bureaus report changes. Every time you open a new credit card, make a payment to one of your debts, apply for credit, or do anything else credit related, your credit score may update.

What Is a Good Credit Score?

The various companies that calculate credit scores have different models and different ranges for what credit score is considered “good.” Typically, a credit score of 670-739 is considered good, with credit scores of 740-799 being very good and scores over 800 being considered excellent.

Factors That Impact Your Credit Score

Each company that calculates credit scores uses their own proprietary formula to calculate credit scores. Five of the common criteria used to calculate credit scores are:

• Payment history, meaning do you have a history of paying on time

• Credit usage, which is typically expressed as your credit utilization ratio, meaning how much debt (or a balance) you have vs. your credit limit

• Length of credit history, or how long you have been accessing credit

• Credit mix, which considers whether you have shown yourself to be capable of managing, say, both installment loans and lines of credit

• Recent credit inquiries, since too many hard credit inquiries in a short period of time can negatively affect your credit score

Credit Models Applied by Different Companies

You may wonder why you have different credit scores, and the answer is that there are different credit models applied by different companies. Depending on what company is doing the calculation, they may calculate your score slightly differently.

Generally speaking, each company that calculates credit scores looks at mostly the same types of information, so your different credit scores should be similar. It would be rare (if not impossible) to have a bad credit score from one credit model and excellent credit in another.

Lenders Credit Score Grouping

Some lenders may use your exact credit score to determine whether to extend credit, whereas others may group scores into a range. For instance, a particular lender might give one interest rate to people with excellent credit and a higher rate to those with very good or good credit. Meanwhile, they may choose not to extend credit at all to those with a fair credit score or lower.

Credit Score in Relation to Your Age

There is not a strict correlation between your age and your credit score. You might think that there is a specific starting credit score, but the truth is that when you are just starting out, you don’t have any credit score at all. As you get older, however, you have more chances to show that you are responsible (or not responsible) with your credit, and your credit score is adjusted accordingly.

Consequences of Having a Low Credit Score

Having a low credit score can have quite a negative impact on your financial life. If your credit score is too low and you don’t meet the minimum credit score for a credit card, you may not be able to get approved for loans or a credit card. And if you are approved, you may have to pay significantly higher interest rates than someone with better credit.

Tips for Building Your Credit

There is no one magic way to build your credit — instead, your credit will build as you show that you’re responsible with the loans that you already have. For example, as you use your credit card responsibly by paying your monthly statement on time, your credit score may be positively impacted vs. paying late or missing payments, which can lower your score.

Other ways that you can work toward building your credit include avoiding using too much of your available credit and keeping old accounts open to maintain the age of your accounts.

Recommended: Understanding Purchase Interest Charges on Credit Cards

Monitor Your Credit Score

Another thing you can do to try and secure a solid financial future is to regularly monitor your credit report and credit score. Keeping an eye on the information in your credit report can help you know if there’s any inaccurate or incorrect information in it. If there is, correcting it can be one way to build your credit score.

Additionally, keeping an eye on your credit score can clue you into what effect different behaviors have on your credit score. This can help you make more informed credit-related decisions in the future.

The Takeaway

A good credit score can make borrowing easier and less expensive by improving your chances of approval and helping you qualify for better loan terms. While scores range from 300-850, the average U.S. score is in the good range, showing that building strong credit is achievable. By paying bills on time, keeping credit card balances low, and using credit responsibly over time, you can maintain good credit and broaden your financial options.

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FAQ

What is the average credit score?

As of 2026, the average credit score in the United States is 714, which falls in the good credit range. Maintaining a score in the good range can still help you qualify for better loan options and lower interest rates.

What benefits does a good credit score provide?

Having a good credit score can have a variety of positive financial impacts. You may need a minimum credit score to get a credit card that you want to apply for, or you may qualify for a lower interest rate on some loans as compared to someone with a lower credit score.

Can my credit score affect my loan eligibility?

Yes, your credit score can absolutely affect your eligibility for certain loans. If you have a bad credit score, you may not get approved for a loan from some lenders. Or, if you are approved, you may have to pay a higher interest rate than someone with a better credit score.

Can a very poor credit rating prevent me from getting a cell phone contract?

Yes, it is possible that having a low credit score might prevent you from getting a cell phone contract. Some cell phone providers look at your credit score when you’re applying for a cell phone contract. If you have a low credit score, you may not be able to qualify for some contracts, or you may have to put down a security deposit beforehand.

Will low credit impede my chances of getting a rented apartment?

There are some landlords or property managers who look at your credit score when deciding whether or not you qualify for an apartment. If that’s the case for an apartment you’re looking at, then having a low credit score may have a negative impact on your chances of qualifying.

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Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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