Warning: Late repayment can cause you serious money problems. For help, go to MyMoney.gov. We are a broker, NOT a lender.
Warning: Late repayment can cause you serious money problems. For help, go to MyMoney.gov. We are a broker, NOT a lender.
When you start applying for credit cards, personal loans, or a mortgage, one of the first questions you may ask is: what is a good credit score considered in the United States?
Lenders use your credit score to assess how likely you are to repay borrowed money. A higher score increases your chances of approval and helps you get lower interest rates. But many people are unsure what the numbers actually mean or how they affect real-life borrowing.
In this guide, we break down what counts as a good credit score, how your score is calculated, and how it impacts things like personal loans, mortgage eligibility, and more.
A credit score is a three digit number that gives lenders a quick overview of your creditworthiness. In the US, the most widely used credit scoring models are:
Both range from 300 to 850. The higher the number, the better your credit profile looks to lenders. These scores are based on data from your credit reports, which are maintained by the three major credit bureaus:
Although different lenders have their own criteria, these are the general ranges most commonly used for FICO Scores:
So, if you're wondering what is a good credit score considered, anything above 670 will usually open the door to better rates, easier approvals, and higher loan limits.
Keep in mind that VantageScore has slightly different ranges, but the categories are similar. You can see an explanation of the differences here.
A good credit score signals that you manage your debts responsibly. That’s why most lenders will offer better loan products and lower interest rates to borrowers with higher scores.
Here’s what your credit score can influence:
If you’re applying for a personal loan, you’ll want to know what credit score is needed for a personal loan.
Most lenders prefer scores above 640, but you may still qualify with a lower score, especially through platforms that work with fair credit borrowers or offer secured loans.
Check with lenders like Avant or credit marketplaces like LendingTree, which help connect people with lenders even if their score isn’t perfect. You can browse their options here.
If you’re trying to improve your odds, paying down balances and reviewing your report for errors can help boost your score before applying.
A mortgage is one of the biggest loans you will ever apply for. Lenders are cautious when reviewing applicants, especially if they are lending for 15 to 30 years.
So, what is a good credit score to buy a house?
Mortgage providers also consider your debt to income ratio, income stability, and savings. Even if you meet the score threshold, these other factors also matter.
Use the mortgage calculator tools available at Bankrate to estimate how your score affects your future home loan payments.
Understanding what impacts your score can help you take control of your financial future. Here’s what matters most:
1. Payment History (35%)
Late payments hurt your score quickly. Always pay on time.
2. Credit Utilization (30%)
Use less than 30 percent of your credit limit to stay in the safe zone.
3. Length of Credit History (15%)
Older accounts help boost your score, so don’t close your oldest card unless necessary.
4. Credit Mix (10%)
A mix of revolving credit (cards) and installment credit (loans) is ideal.
5. New Credit Inquiries (10%)
Avoid applying for several loans or cards in a short time.
You can monitor your score and get tips on how to improve it through Experian, which offers free credit monitoring and educational resources.
Even if you fall in the Fair or Poor category, you still have loan options. Some lenders specialize in bad credit personal loans or secured loans that require collateral.
Other steps you can take include:
Even a 20 point increase can save you thousands in interest over the life of a loan. Here are practical steps to help you build a better credit score:
The difference between a good score and an excellent score can translate into hundreds or even thousands of dollars in savings over time.
For example:
Use a loan calculator from trusted financial education sites like Investopedia to understand your exact rate differences based on score.
Q: Can I get approved with a score under 600?
Yes, but expect higher rates or lower amounts. You may need to apply through specialized lenders or use a secured product.
Q: Do student loans affect my credit score?
Yes, both positively and negatively. On-time payments help, while missed payments hurt.
Q: How can I check my credit score for free?
Use tools from Experian, Credit Karma, or request your report once a year at AnnualCreditReport.com
Q: What credit score is needed to get a good credit card?
Scores of 700+ generally give you access to better cards with cashback, rewards, and lower interest rates.
Understanding what is a good credit score considered is more than just knowing a number. It’s about knowing where you stand, what impacts your score, and how to take control of your credit future.
Whether you are applying for a personal loan, shopping for a mortgage, or just trying to qualify for a better credit card, your credit score will be one of the most important factors lenders consider.
By knowing your current score, reviewing what credit score is needed for a personal loan, and improving your credit habits over time, you can put yourself in the best position to borrow with confidence.
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Fort Media LLC operates as a credit broker, not a lender. We do not charge customers a fee for using our services but may receive a commission from lenders or other brokers if a customer enters into a consumer credit agreement following an introduction through our platform. We work with a selected panel of lenders and brokers to offer a variety of credit and loan products.
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