What Is Considered a Good Credit Score?

Once you achieve a good credit score, you can start shooting for an exceptional credit score. What is considered good credit depends on the type of credit score used. You have more than one credit score, with FICO being the most common and VantageScore coming in second.

When a lender wants to check your credit score, they can choose from different versions of each type of score. So, I'm not surprised that you're finding it hard to figure out what a good credit score is.

The goal of this post is to pull back the curtain on credit and explain what it means to have good credit. I'll tell you how to understand your credit score and whether it's a FICO score or a VantageScore. Once you know where you stand with your credit, you'll be able to make better decisions about it.

You'll know what kinds of credit cards or loans you might be able to get and which ones you're not likely to get.

What Is a Good FICO Score?

The FICO score ranges from 300 to 850 and actually has two categories for good credit. Here are the credit score ranges:

Exceptional: 800+. Very good: 740 to 799. Good: 670 to 739. Fair: 580 to 669. Poor: 579 and lower.

As of April 2021, the average FICO score is 716, which is firmly in the "good" category. If your credit score is good, you are considered a good borrower, but you won't get the best rates. A person with a good FICO score has an 8% chance of being late on a payment.

Note that there is also a FICO score range for "very good." If your score is between 740 and 799, you have a better than average score. When you apply for credit, you have a great chance of being approved and getting low rates.
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