A credit score tells lenders about your creditworthiness (how likely you are to pay back a loan based on your credit history). It is calculated using the information in your credit reports. FICO® Scores are the standard for credit scores—used by 90% of top lenders.
Credit scores influence the credit that's available to a person and the terms (interest rate, etc.) that lenders may offer. It's a vital part of credit health.
When you apply for credit — whether for a credit card, an auto loan or a mortgage—lenders want to know what risk they'd take by loaning money. When lenders order a credit report, they can also request a credit score that's based on the information in the report. A credit score helps lenders evaluate a credit report. It is a number that summarizes credit risk, based on a snapshot of a credit report at a particular point in time.
It's important to understand that not every credit score offered for sale online is a FICO Score. Learn the difference between credit scores and FICO Scores.
About FICO Scores
The most widely used credit scores are FICO Scores, the credit scores created by Fair Isaac Corporation. 90% of top lenders use FICO Scores to help them make billions of credit-related decisions every year. FICO Scores are calculated based only on information in a consumer's credit report maintained by the credit bureaus, Experian, Equifax and TransUnion.
By comparing this information to the patterns in hundreds of thousands of past credit reports, FICO Scores estimate your level of future credit risk, or how likely you are to repay a loan on time.
What is a good credit score?
Most credit scores have a 300-850 score range. The higher the score, the lower the risk to lenders. A "good" credit score is considered to be in the 670-739 score range.
| Credit Score Ranges | Rating | Description |
| <580 | Poor | This credit score is well below the average score of U.S. consumers and demonstrates to lenders that the borrower may be a risk. |
| 580-669 | Fair | This credit score is below the average score of U.S. consumers, though many lenders will approve loans with this score. |
| 670-739 | Good | This credit score is near or slightly above the average of U.S. consumers and most lenders consider this a good score. |
| 740-799 | Very Good | This credit score is above the average of U.S. consumers and demonstrates to lenders that the borrower is very dependable. |
| 800+ | Exceptional | This credit score is well above the average score of U.S. consumers and clearly demonstrates to lenders that the borrower is an exceptionally low risk. |
While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single "cutoff score" used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates.
Why is my credit score high or low?
When a credit score is calculated, the credit bureau will also provide up to five reasons that are most heavily influencing that particular score. Learn what's in your credit scores.
The minimum required to calculate a credit score
For a credit score to be calculated, your credit report must contain enough information—and enough recent information—on which to base a credit score.
Generally, that means you must have at least one account that has been open for six months or longer, and at least one account that has been reported to the credit bureau within the last six months. What are the minimum requirements to have a FICO Score?
Different scores at each credit bureau
Because each credit bureau could have different information on file about you, your credit scores will most likely differ for each of the three credit bureaus: Equifax, TransUnion and Experian.
Sometimes the difference is just a few points. Other times, the difference in your credit scores from each bureau can be vast due to an error or mistake in your credit report. These differences can cost you thousands over the life of a loan. Be sure to check your reports regularly or sign up for alerts to be notified when your score changes.
Your credit scores will change over time
As the information in your credit report changes, so will any new credit score based on your credit report. Your credit scores from a month ago are probably not the same score a lender would get from the credit bureau today. See how much FICO Scores change over time.
Other credit scores or FICO Scores?
While FICO Scores are used by 90% of top lenders, there are other credit scores made available to consumers. Other credit scores may evaluate your credit report differently than FICO Scores. When purchasing a credit score for yourself, most experts recommend getting a FICO Score, as FICO Scores are used in 90% of lending decisions.
See how lenders use FICO Scores:
FAQs
A FICO Score is a three-digit number based on the information in your credit reports. It helps lenders determine how likely you are to repay a loan. This, in turn, affects how much you can borrow, how many months you have to repay, and how much it will cost (the interest rate).
What credit score is enough? ›
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
What is a credit score answer? ›
A credit score is a number that depicts a consumer's creditworthiness. FICO scores range from 300 to 850. Factors used to calculate your credit score include repayment history, types of loans, length of credit history, debt utilization, and whether you've applied for new accounts.
What is a valid credit score? ›
Below 580: poor. 580 to 669: fair. 670 to 739: good. 740 to 799: very good. 800 and above: exceptional.
Is a 600 credit score fair or poor? ›
Your score falls within the range of scores, from 580 to 669, considered Fair. A 600 FICO® Score is below the average credit score. Some lenders see consumers with scores in the Fair range as having unfavorable credit, and may decline their credit applications.
Can I buy a house with a 780 credit score? ›
Borrowers with a FICO credit score above 780 and a down payment of at least 40% will see the lowest possible financing charges, while those with a score below 640 could see the highest rates available.
What is a very poor credit score? ›
A poor credit score falls between 500 and 600, while a very poor score falls between 300 and 499. “In general, people with higher scores can get more credit at better rates,” VantageScore says. So you could have trouble getting approved for higher-limit, low-interest cards with a credit score of 600 or below.
What is a 1 credit score? ›
So while you may be a tier 1 borrower with one lender, you may have tier 2 or tier 3 status with another. In FICO's scoring model, scores in the 800 to 850 range are considered exceptional, or best. A given lender, however, may consider scores in the 750 to 850 range as best and categorize those borrowers as tier 1.
Is a 900 credit score possible? ›
Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
What is a good credit score by age? ›
How Credit Scores Breakdown by Generation
| Average FICO 8 Score by Generation |
|---|
| Generation | 2022 | 2023 |
|---|
| Generation Z (ages 18-26) | 679 - Good | 680 - Good |
| Millennials (27-42) | 687 - Good | 690 - Good |
| Generation X (43-58) | 707 - Good | 709 - Good |
2 more rowsThree major credit reporting agencies provide credit reports: Equifax, Experian, and TransUnion. 123 These may be the safest routes to obtaining your credit history, which ultimately affects your personal credit score.
What credit score is needed to buy a car? ›
The credit score required and other eligibility factors for buying a car vary by lender and loan terms. Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.
What is the most trusted credit score? ›
FICO scores are used by over 90% of top lenders and offer a variety of different types of scores.
Can I buy a car with a 612 credit score? ›
In short, there is no set-in-stone credit score to get a car loan. A poor credit score is not an automatic disqualifier, but it will likely impact your ability to get a loan and a good interest rate.
Can I buy a car with a 600 credit score? ›
In general, you'll need a FICO credit score of at least 600 to qualify for a traditional auto loan, but the minimum credit score required with vary from lender to lender.
Can I buy a house with a 612 credit score? ›
Credit score and mortgages
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
What can a 780 credit score do for you? ›
A 780 credit score is often considered very good — or even excellent. With excellent credit, your credit scores become more of a bridge and less of a roadblock — a high score can help you qualify for premium rewards credit cards, auto loans and mortgages with the best terms.
How much can I borrow with a 780 credit score? ›
You can borrow over $100,000 with a 780 credit score if you get a mortgage or a home equity loan. Keep in mind, the exact amount of money you will get depends on other factors in addition to your credit score, such as your income, your employment status and even the lender.
Do I need a 750 credit score? ›
Learn more about your credit score
A 750 credit score is Very Good, but it can be even better. If you can elevate your score into the Exceptional range (800-850), you could become eligible for the very best lending terms, including the lowest interest rates and fees, and the most enticing credit-card rewards programs.
Is 600 a good credit score? ›
So what scores qualify as a poor, fair, good or excellent score vary. When it comes to FICO credit scores, the company says a score of 600 is considered a fair credit score. According to a report from Experian®, the average FICO credit score in America was 714 in 2022. So 600 falls below that national average.
