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Personal Finance Guide · 2026

What is a good credit score?

FICO score ranges explained — what each tier gets you and exactly how much a better score saves

Direct answer

A good credit score is 670 to 739 on the FICO scale (300–850). The average American score in 2026 is 715 — solidly in the good range. But lenders offer their best rates at 740 or higher, and anything above 760 unlocks the best available pricing on virtually every loan type.

FICO credit score ranges — 2026

FICO scores run from 300 to 850 and are used by 90% of top lenders. Here's what each tier means and roughly what percentage of Americans fall into it:

800–850
Exceptional
Best rates on everything. Approved for virtually any product. About 23% of Americans.
~23%
740–799
Very Good
Access to the best rates — 760+ is the practical threshold for top mortgage and auto pricing.
~22%
670–739
Good
Average American falls here (715). Approved for most products but not at best rates.
~21%
580–669
Fair
Higher rates, FHA loans available, some conventional products accessible but costly.
~18%
300–579
Poor
Limited options, very high rates, may need secured cards or co-signers to rebuild.
~16%

What your credit score actually costs you — real numbers

The difference between a good and excellent score isn't abstract — it's dollars. Here's what the same $350,000 mortgage costs across credit tiers in 2026. Use our mortgage calculator to run your own numbers.

$350,000 30-year mortgage — rate and cost by credit score

Credit scoreRateMonthly paymentTotal interest
760+6.15%$2,133$417,880
700–7596.63%$2,240$456,400
660–6997.10%$2,350$496,000
620–6597.72%$2,505$551,800
Key insight

The gap between a 620 and a 760 credit score on a $350,000 mortgage is $372 per month and $133,920 over 30 years — on the exact same home. That's the real price of a lower credit score.

$35,000 auto loan (60 months) — by credit score tier

Credit scoreTypical APRMonthly paymentTotal interest
720+ (Super prime)5.5%$670$5,200
660–719 (Prime)7.5%$701$7,060
620–659 (Near prime)11%$761$10,660
580–619 (Subprime)16%$852$16,120

The subprime borrower pays over $10,000 more than the super-prime borrower on the exact same car. Use our auto loan calculator to see what your rate tier means for your specific vehicle.

What makes up your credit score

FICO scores are calculated from five factors. Knowing the weights helps you prioritize what to fix first:

35%
Payment history
Whether you pay on time. One missed payment can drop your score 50–100 points. The single biggest factor.
30%
Credit utilization
How much of your available credit you're using. Keep it below 30% — ideally under 10% for the best scores.
15%
Length of history
How long your accounts have been open. Older accounts help — don't close them unnecessarily.
10%
Credit mix
Having a variety of credit types (cards, loans, mortgage) shows you can manage different products.

How to improve your credit score — fastest moves first

Not all credit-building actions are equal. Here's what actually moves the needle quickly:

If you're carrying high credit card balances, our credit card payoff calculator can show you exactly how long it'll take to pay them down — which is one of the fastest ways to improve your score. If you're juggling multiple debts, the debt payoff calculator can help you prioritize.

Good vs excellent — is it worth the effort?

The practical answer: yes, up to about 760. Once you're above 760–780, you've unlocked the best available rates on virtually every loan type. The difference between a 780 and an 850 is minimal for most financial products — chasing a perfect score beyond that point has little financial return.

The most impactful jump is from fair (580–669) to good (670–739) — that's where you gain access to conventional loans, significantly lower rates, and much better credit card offers. If you're buying a home, see our full guide to credit scores for home buying for the specific thresholds that matter for mortgages.

See how your credit score affects your loan payment

Enter any rate into our calculators to see exactly what your credit score tier means for your monthly payment.

Mortgage Calculator → Personal Loan →
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Common questions

What is a good credit score?

670 to 739 on the FICO scale is considered good. The average American score in 2026 is 715. However, lenders offer their best rates at 740 or higher — that's the real target worth aiming for.

What is considered an excellent credit score?

800 or above is exceptional. In practical terms, 760 or above unlocks the best available rates. There's little financial benefit to pushing beyond 780 — the rates don't get meaningfully better.

What credit score do I need to buy a car?

Most lenders approve auto loans starting around 500–600, but the best rates require 720 or higher. See our auto loan calculator to compare what different rates cost you monthly.

How long does it take to build a good credit score?

Building from scratch takes 6–12 months. Moving from fair to good takes 3–6 months of consistent on-time payments and lower utilization. Good to excellent takes 1–2 years.

What factors affect my credit score the most?

Payment history (35%) and credit utilization (30%) together make up 65% of your score. Paying on time and keeping balances low are the two most impactful habits. Use our credit card payoff calculator to build a plan for reducing balances.