What Is Considered Good Credit Score Range

Quick answer

• A “good” credit score is generally considered to be in the 670-739 range, though scores above 740 are often seen as “very good” or “excellent.”
• Scores below 670 may make it harder to qualify for loans, credit cards, or favorable interest rates.
• Your credit score is a three-digit number that lenders use to assess your creditworthiness.
• It’s calculated based on your credit history, including payment history, amounts owed, length of credit history, new credit, and credit mix.
• Improving your credit score takes time and consistent positive financial behavior.

What to check first (before you act)

Credit Report Accuracy

Before you can improve your score, you need to know what’s influencing it. Your credit report contains the raw data used to calculate your score. Errors on your report, such as incorrect personal information, accounts you don’t recognize, or wrongly reported late payments, can unfairly drag down your score. It’s crucial to ensure the information is accurate.

Utilization and Balances

This refers to the amount of credit you’re currently using compared to your total available credit. High credit utilization (using a large percentage of your available credit) can signal to lenders that you might be overextended, negatively impacting your score. Keeping your balances low, especially on credit cards, is a key factor.

Payment History

This is the most significant factor influencing your credit score. Consistently paying your bills on time, every time, demonstrates reliability to lenders. Late payments, missed payments, or defaults can significantly damage your creditworthiness and take a long time to recover from.

Recent Inquiries

When you apply for new credit, lenders typically make a “hard inquiry” on your credit report. Too many hard inquiries in a short period can suggest to lenders that you are seeking a lot of credit quickly, which can be a red flag and may lower your score slightly.

Time Horizon

Credit building is not an overnight process. The length of your credit history and how long you’ve managed credit responsibly matters. Older, well-managed accounts generally benefit your score more than newer ones. Be patient and focus on long-term, positive habits.

Step-by-step (credit improvement workflow)

1. Obtain Your Credit Reports

• What to do: Request your free credit reports from each of the three major credit bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com.
• What “good” looks like: You have clear, accurate reports that reflect your financial activity correctly.
• Common mistake: Not checking all three reports. They can contain different information. Avoid this by always using the official, government-mandated website.

2. Review for Errors

• What to do: Scrutinize each report for inaccuracies, such as incorrect personal details, accounts you don’t recognize, or wrongly reported late payments or balances.
• What “good” looks like: Your reports contain only accurate and verifiable information.
• Common mistake: Skipping this step or not being thorough. Avoid this by taking notes and cross-referencing with your own financial records.

3. Dispute Inaccuracies

• What to do: If you find errors, file a dispute with the credit bureau reporting the inaccuracy. You can usually do this online, by mail, or by phone.
• What “good” looks like: The credit bureau investigates your dispute and removes or corrects the erroneous information.
• Common mistake: Not having documentation to support your dispute. Avoid this by gathering all relevant proof (e.g., old statements, payment confirmations) before filing.

4. Pay Bills On Time, Every Time

• What to do: Make at least the minimum payment on all your credit accounts by the due date each month.
• What “good” looks like: A perfect payment history with no late payments reported.
• Common mistake: Forgetting due dates. Avoid this by setting up automatic payments or calendar reminders for all your bills.

5. Lower Credit Utilization

• What to do: Aim to keep your credit card balances below 30% of your credit limit, and ideally below 10%. Pay down existing balances.
• What “good” looks like: Low credit utilization ratios across all your credit cards.
• Common mistake: Only paying the minimum on high-balance cards. Avoid this by paying more than the minimum, especially on cards with high utilization.

6. Avoid Opening Too Many New Accounts

• What to do: Only apply for credit when you genuinely need it. Space out applications for new credit.
• What “good” looks like: A minimal number of recent hard inquiries on your credit report.
• Common mistake: Applying for multiple credit cards or loans simultaneously. Avoid this by prioritizing your needs and understanding the impact of inquiries.

7. Keep Old Accounts Open

• What to do: Unless there’s a compelling reason (like a high annual fee with no benefits), keep older, well-managed credit accounts open, even if you don’t use them often.
• What “good” looks like: A longer average age of your credit accounts.
• Common mistake: Closing old credit cards out of a desire to simplify. Avoid this by understanding that closing accounts can reduce your average credit age and increase utilization.

8. Diversify Your Credit Mix (Carefully)

• What to do: Having a mix of credit types (e.g., credit cards, installment loans like mortgages or auto loans) can be beneficial, but don’t open accounts just for this.
• What “good” looks like: A healthy mix of different credit types that you manage responsibly.
• Common mistake: Taking out loans or opening credit cards you don’t need solely to diversify. Avoid this by letting your credit mix develop naturally based on your financial needs.

9. Monitor Your Credit Regularly

• What to do: Periodically check your credit reports and scores to track your progress and catch any new issues.
• What “good” looks like: You are aware of your credit standing and any changes affecting it.
• Common mistake: Only checking credit when applying for a major loan. Avoid this by making it a routine habit, perhaps quarterly or semi-annually.

What affects your score (plain language)

• Payment History: Did you pay your bills on time? This is the biggest factor. Late payments hurt your score significantly.
• Amounts Owed (Credit Utilization): How much of your available credit are you using? Keeping this low (ideally below 30%, even better below 10%) is key.
• Length of Credit History: How long have you had credit accounts, and how long have they been open? Longer, well-managed histories are better.
• Credit Mix: Do you have a variety of credit types (e.g., credit cards, installment loans)? Lenders like to see you can manage different kinds of debt.
• New Credit: How many new accounts have you opened recently? Applying for too much credit at once can lower your score.
• Public Records: Bankruptcies, liens, or judgments on your record will severely damage your score.
• Collection Accounts: If an old debt goes to collections, it will negatively impact your score.

What NOT to do while improving credit: Avoid closing old credit cards, as this can shorten your credit history and increase your utilization ratio. Also, resist the urge to apply for every new credit card offer you receive, as too many inquiries can lower your score. Focus on responsible management of existing accounts.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Missing a credit card payment	A significant drop in your credit score, making future borrowing harder.	Set up automatic payments or calendar reminders for all due dates. Pay at least the minimum amount.
Maxing out credit cards	High credit utilization, signaling financial distress to lenders.	Pay down balances aggressively. Aim to keep utilization below 30%, ideally below 10%.
Applying for too much credit at once	Multiple hard inquiries, which can temporarily lower your score.	Only apply for credit when you truly need it. Space out applications for new credit.
Closing old, unused credit cards	Reduced average age of credit history and increased credit utilization.	Keep well-managed, older accounts open, even if unused. Monitor them for activity.
Not checking credit reports for errors	Inaccuracies going unnoticed, unfairly lowering your score.	Regularly obtain and review your credit reports from all three bureaus.
Ignoring collection accounts	Severe damage to your credit score for years.	Address collection accounts promptly, either by paying them or negotiating a settlement.
Co-signing a loan for someone else	You become responsible for the debt if the primary borrower defaults.	Understand the full implications and only co-sign if you are prepared to take on the debt.
Not understanding loan terms	Taking on debt with unfavorable interest rates or hidden fees.	Always read and understand all terms and conditions before signing any loan agreement.
Relying solely on one type of credit	A less robust credit mix, which can slightly limit your score potential.	Gradually build a mix of credit types (e.g., credit cards, installment loans) as your financial needs evolve.
Not disputing fraudulent activity	Unrecognized charges or accounts damaging your credit.	Immediately report and dispute any suspicious activity on your credit reports or statements.

Decision rules (simple if/then)

• If your credit utilization is above 30%, then focus on paying down balances because high utilization significantly hurts your score.
• If you have missed a payment in the last 12 months, then prioritize on-time payments for the next year because payment history is the most critical factor.
• If you see an account on your credit report that you don’t recognize, then dispute it immediately with the credit bureau because it could be fraud.
• If you are planning to apply for a mortgage soon, then avoid opening any new credit accounts for at least six months because new inquiries and accounts can temporarily lower your score.
• If you have a thin credit file (limited credit history), then consider becoming an authorized user on a responsible person’s well-managed credit card because this can help build your history.
• If you have multiple credit cards with high balances, then focus on paying down the card with the highest interest rate first (the “avalanche method”) because this saves you money on interest over time and still helps utilization.
• If you have a credit card with a very low credit limit and a high balance, then consider asking for a credit limit increase (if you’ve managed it well) because this can lower your utilization ratio.
• If you are consistently paying all your bills on time and keeping utilization low, then your score should naturally improve over time because consistent positive behavior is rewarded.
• If you have a significant error on your credit report, then gather supporting documentation before disputing because evidence strengthens your claim.
• If you are considering closing an old credit card, then check your current utilization ratio first because closing an account can increase your utilization and potentially lower your score.
• If you are frequently missing payments, then set up automatic payments for at least the minimum amount due because this is the simplest way to ensure on-time payments.
• If you are aiming for the best interest rates on loans, then strive for a credit score in the excellent range (typically 740+) because lenders reserve their best rates for the most creditworthy borrowers.

FAQ

What is a good credit score?

Generally, a score of 670-739 is considered good. Scores above 740 are typically viewed as very good or excellent, offering the best borrowing terms.

How long does it take to improve a credit score?

Improving a credit score takes time and consistent effort. Significant improvements can take several months to over a year, depending on the issues you’re addressing.

Should I pay off all my debt to improve my score?

While paying off debt is good, it’s often more beneficial for your score to keep credit utilization low (below 30%) rather than having zero debt. Having some revolving credit with low balances is usually better than having no credit.

What happens if I have no credit history?

If you have no credit history, lenders may consider you a higher risk. You can start building credit by opening a secured credit card or becoming an authorized user on someone else’s account.

Can I have different credit scores?

Yes, you can have different credit scores because various scoring models exist (e.g., FICO, VantageScore), and your score can vary slightly depending on which credit bureau’s data is used.

Is it bad to check my own credit score?

No, checking your own credit score is considered a “soft inquiry” and does not affect your score. It’s a good way to monitor your progress.

How often should I check my credit report?

You are entitled to a free credit report from each of the three major bureaus annually. It’s wise to check them at least once a year, and more often if you’ve had recent credit activity or suspect errors.

What this page does NOT cover (and where to go next)

• Specific credit card offers or loan products. (Consider researching credit cards for building credit or personal loans for debt consolidation.)
• Detailed legal advice regarding credit disputes or bankruptcy. (Consult with a consumer protection attorney or financial advisor.)
• Investment strategies or retirement planning. (Explore resources on investing and long-term financial planning.)
• International credit reporting or scores. (This information is specific to the US credit system.)
• How to recover from identity theft. (Contact identity theft protection services and relevant government agencies.)