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Credit Score Ranges: What’s a Good Credit Score?

Credit Score Ranges: What’s a Good Credit Score?

Editors at Varo
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Your bank account balance isn’t the only number that’s critical to your financial future. Your credit score determines what rates and offers you’ll be eligible for, and a low score limits your options. Let’s dive into credit score ranges and what a good credit score looks like. 

What is a Credit Score?

Your credit score is a three-digit number that symbolizes your financial integrity, past and present. Lenders use your score to assess whether or not to lend you money. 

Not everyone has a credit score. You build credit history by having accounts, borrowing money, and paying it back on time. Your credit score will fluctuate throughout your life depending on your habits.

Why Credit Scores Exist

Credit scores are designed to help lenders determine credit-worthiness. Banks and credit card companies evaluate your score to determine how risky it might be to lend you money. 

What is a Good Credit Score?

Scores range from 300 to 850. The higher the number, the better. Scores above 700 are considered good, and 800 or higher is incredible. 

Most Americans score above 670, with the average score in the U.S. being between 600 and 750. 

Here’s a ranking of credit score ranges:

  • Optimal: 800 to 850
  • Very good: 740 to 799
  • Good: 670 to 739
  • Fair: 580 to 669
  • Poor: 300 to 579 

These ranges are narrow, sometimes within only 50 or 60 points. If you can raise your credit score by even 10 to 20 points in a year, you may qualify for better rates and pay lower interest on your credit cards and loans.

Opinions, advice, services, or other information or content expressed or contributed here by customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of Varo Bank, N.A. Member FDIC (“Bank”). Bank is not responsible for the accuracy of any content provided by author(s) or contributor(s).

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