What Is a Good Credit Score?
Your credit score—those three digits—holds significant power over your financial life. A strong score can unlock lower interest rates, better loan terms, and access to premium credit cards. On the flip side, a poor score can make borrowing more expensive and limit your financial options.
So, what exactly is considered a good credit score, and what should you aim for?
Key Points
Credit scores range from 300 to 850, with higher scores offering better financial opportunities.
A good credit score falls between 670 and 739, while a very good or exceptional score ranges from 740 to 850.
The most important factors affecting your score are payment history (35%) and credit utilization (30%).
To boost your score, focus on on-time payments and keeping credit usage below 30%.
Understanding Credit Score Ranges
Credit scores are categorized into different tiers:
300 – 579: Poor
580 – 669: Fair
670 – 739: Good
740 – 799: Very Good
800 – 850: Exceptional
If your score is below 670, don’t panic. While it might feel like a long road to improvement, disciplined money management can help you rebuild your credit over time.
Check out Experian’s full guide on credit scores
What Impacts Your Credit Score?
Your credit score is determined by five key factors, ranked in order of importance:
Payment History (35%) – Paying bills on time is the single most important factor.
Credit Utilization (30%) – Keep your balance below 30% of your total credit limit.
Length of Credit History (15%) – The longer your accounts have been open, the better.
Credit Mix (10%) – A mix of credit types (e.g., credit cards, loans) can help.
New Credit (10%) – Opening too many accounts in a short time can hurt your score.
The fastest way to boost your score is to pay your bills on time and keep your credit utilization low.
How to Improve a Fair or Poor Credit Score
If your score is in the Fair or Poor range, here’s how to start rebuilding it:
Review Your Finances – Track where your money is going and cut unnecessary spending.
Prioritize Debt Payments – Put extra money toward paying off credit card balances.
Pay More Than the Minimum – Making larger-than-minimum payments helps lower debt faster.
Avoid New Debt – Refrain from opening new credit accounts unless absolutely necessary.
By focusing on payment history and amounts owed, which make up 65% of your score, you’ll see significant improvement over time.
What If My Score Is 670 or Higher?
If your score is 670 or above, congratulations! You now have access to better loan terms, lower interest rates, and higher credit limits. This is especially valuable when applying for big loans like a mortgage.
To maintain and improve your score further:
Continue making on-time payments.
Keep your credit utilization below 30%.
Avoid closing old credit accounts to maintain a long credit history.
Limit new credit applications to prevent multiple hard inquiries.
A score of 670-739 is good, but pushing it even higher can lead to even greater financial benefits.
What If My Score Is 740 or Higher?
If your credit score is 740 or above, you are in the very good or exceptional range. This means lenders consider you a low-risk borrower, which gives you access to some of the best financial benefits available.
Advantages of a 740+ Credit Score:
Lower interest rates on mortgages, car loans, and personal loans.
Higher credit limits on credit cards.
Access to premium rewards credit cards with better perks, like travel benefits and cashback.
Better approval odds for rental applications and lower security deposits on utilities.
How to Maintain or Improve a 740+ Credit Score:
Continue paying bills on time to protect your perfect payment history.
Keep your credit utilization ratio under 10% (even though under 30% is good, under 10% is ideal).
Avoid unnecessary new credit inquiries.
Maintain long-standing credit accounts to keep your credit age high.
Even if you’re already in the very good or exceptional range, staying disciplined with credit management ensures you keep access to the best financial opportunities.
Final Thoughts
Your credit score is a powerful financial tool that influences your ability to borrow money, secure favorable loan terms, and access premium financial products. Whether you're working to improve your score or aiming to maintain an excellent rating, smart money management and responsible credit use are key.
By focusing on on-time payments, low credit utilization, and long-term credit history, you can build and maintain a strong credit profile that benefits you for years to come.