What is a good FICO® score?
Key takeaways
Understand FICO scores and how to raise yours.
FICO scores help banks and other lenders decide whether to grant someone a line of credit.
FICO scores impact credit access but can also impact insurance rates and renting a home.
Learn what you can do to improve your FICO score.
Understanding the FICO score and its ranges
What is a FICO score and how it’s calculated
A FICO score, provided by Fair Isaac Corporation, is created based on information from three credit bureaus (Experian, Equifax, and TransUnion). Payment history makes up 35% of the score while any current debt or credit usage makes up another 30%. Your credit history length accounts for 15%, any new credit accounts for 10%, and your blend of credit types makes up the remaining 10%. The resulting score helps banks and other lenders assess credit risk.
The typical score range (300–850) and what the bands mean
FICO scores range from 300-850. Within that range, you’ll see five different categories, or bands:
Poor (300-579): Banks may consider this band very risky, so those in this range may be less likely to be approved for a loan or a credit card.
Fair (580-669): People in this band may have had a few issues with credit history like non-payment or late payments. While they may be able to obtain credit, banks may still consider them risky and any credit may come with a higher interest rate.
Good (670-739): This band represents a typical risk without many credit issues, which may mean lower interest rates or fees.
Very Good (740-799): This band represents a good risk and may allow for lower interest rates and better terms.
- Exceptional (800-850): People with exceptional FICO scores are often able to get the lowest interest rates because of their solid credit history.
Average U.S. FICO score and what that means
As of autumn 2025, the average FICO score in the United States was 715. This score falls toward the upper end of the “Good” band, so people in this range may be more likely to be approved for loans or credit cards with decent terms.
What score ranges do lenders consider “good”?
General guidelines for a “good” score
A “Good” FICO score is typically considered to be between 670 and 739. Someone in this range typically has paid most, if not all, of their bills on time and is likely to keep their credit usage under 30% of their available credit limit. They probably don’t open a ton of new credit cards or new lines of credit, and they’ve got a blend of older and newer credit.
Do “good” scores guarantee the best terms?
A “Good” FICO score may allow access to lower interest rates and lower credit card fees than the “Fair” or “Poor” scores, but it doesn’t guarantee you’ll get the absolute best terms.
Why a good FICO score matters
- Better access to credit: Having a higher score means a bank is more likely to offer you a loan or a credit card when you need it. This can be helpful in emergencies or when you need to make large purchases, like buying a home or car.
- Lower interest rates & better terms: Higher FICO scores also may help you access lower interest rates and more favorable terms, such as a lower monthly payment or a longer loan.
- Impact beyond borrowing: Beyond loans and credit cards, your credit history can even impact auto or home insurance premiums, although this may vary based on state and insurance provider. It can also influence whether or not you’ll be able to rent an apartment.
How to determine where you stand
Getting your FICO score & credit reports: Reach out to your credit card company or your bank to see if they’ll give you your FICO score and credit report. You can also get an overview of your credit report and score from Experian for free.
Comparing against benchmarks: Once you have your FICO score, you can then determine which category you currently fall into.
Recognizing model variation: Because your score uses info from three credit bureaus, there can be variations in how your score is calculated. Plus, FICO score calculations get updated as technology and information-gathering methods improve and change. And banks often use different models to calculate scores for car loans, home loans, and credit cards.
Steps to move into the “good” or better score range
Pay all your bills on time
Paying every bill on time can help build toward a better credit score.
Keep credit utilization low
Keep new credit cards to a minimum, if possible, and try not to have more than 30% of your available credit used at any given time.
Don’t close old accounts unnecessarily
Longer credit history generally improves credit scores, so don’t close old accounts if you don’t need to.
Diversify your credit mix (if appropriate)
Having different types of credit, such as credit cards along with a mortgage and an auto or student loan, can aid a credit score — but don’t open new lines of credit you don’t need just to diversify.
Review your credit reports for errors
You can get your credit report (without your exact FICO score) for free once per year from the three major credit bureaus. Doing so can give you the opportunity to check for any suspicious activity or mistakes.
Common mistakes & misconceptions
- Thinking any one score is ideal, because it varies for every lender.
Ignoring other loan criteria like income or available collateral.
Opening multiple new accounts in a short time to try to raise your FICO score.
Paying off your credit cards and closing them right away — it shortens your credit history.
Relying on websites offering a free credit score without understanding what model is being used or how the score is calculated.
Bottom line
Much goes into calculating each person’s FICO score, including credit history, credit usage, mix of credit types, and more. Making payments on time and avoiding some common traps can help you improve your FICO score over time and access more favorable terms on loans and other lines of credit.
Frequently asked questions
Is 700 a good FICO score?
Yes, a score of 700 falls into the “Good” band of FICO scores.
What FICO score do I need to buy a house?
It varies by bank and your particular type of mortgage, but lenders typically have minimums of at least 620.
How quickly can I improve my FICO score?
Always pay your bills on time. Beyond that, pay down your existing balances and be sure to keep old accounts active to lengthen your history.
Does closing a credit card lower my FICO® score?
Closing a credit card could lower your score since it lowers your available credit limit, and it could shorten your credit history.
The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
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