Credit Score Ranges: What They Mean and How They Work

A credit score is a three-digit number, usually on a scale of 300 to 850, that estimates how likely you are to repay borrowed money and pay bills. They're grouped into credit score ranges — generally defined as excellent, good, fair and poor — and lenders use these ranges when assessing potential applications for mortgages, credit cards, auto loans and other purchases like a cell phone.

A higher credit score can give you access to more financial products — and at lower interest rates. There's a lot at stake, so it pays to know what your credit score is and what credit score range it falls in.

What are the credit score ranges?

There are two companies that dominate credit scoring, FICO and VantageScore, and they use models that vary. Both use a credit score range of 300 to 850, but they have different ranges and call those ranges by different names. These are the general guidelines:

Because of these differences, here are some general guidelines for credit ranges:

• Excellent credit: Any score in the high 700s or higher.

• Good credit: Any score from the mid-600s to mid-700s.

• Fair credit: Any score in the mid-500s to low 600s.

• Poor credit: Any score between 300 to high 500s.

Why are my FICO and VantageScore credit scores different?

Different models, different math

FICO and VantageScore both use a 300-850 scale and consider the same core factors — such as payment history, credit utilization and account age — but they weight those factors differently.

For example, payment history makes up 40% of VantageScores but only 35% of FICO scores. This creates some variation between the two models.

FICO 8 and VantageScore 3.0 are commonly used credit score models, but there are additional models available. Lenders might be using older or newer scoring models to calculate your scores.

Credit report data can vary

Scores can also vary depending on which credit bureau supplied the credit report data used to generate it — or even when the data was reported. In addition, not every creditor sends account activity to all three bureaus, so your credit report from each one is unique.

Why credit score ranges matter

Credit score ranges give lenders a quick way to assess an applicant’s credit risk and determine what kinds of financial products and interest rates to offer.

For example, someone with excellent credit might qualify for a lower interest on a car loan than someone with a fair score. The difference can translate into thousands of dollars saved over the life of the loan and smaller monthly payments.

Someone with good or excellent credit might also get access to premium credit cards with more generous rewards, such as high cashback rates, travel perks (airport lounge access, travel insurance, TSA PreCheck reimbursement), sign up bonuses and lower introductory interest rates.

On the other hand, someone with fair or poor credit may face higher interest rates, smaller credit limits or might get denied.

What factors affect your credit scores?

Your credit score is shaped by five key factors — but not all of them carry equal weight. Understanding how each one works can help you focus your efforts where they'll make the biggest difference.

Payment history

This is your record of paying your bills each month and it's the most important factor in your credit score. Missing a payment is detrimental to your score and can signal to lenders that you might be unreliable. A payment that's 30 days or more past the due date stays on your credit reports for seven years.

Tips for avoiding a late payment:

• Set up automatic payments for at least the minimum amount due. 

• Use calendar reminders or app alerts to manage due dates. 

• Group bill payments together to create a consistent monthly routine.

Credit utilization

This measures how much of your credit you are using at a given time. It's calculated by dividing your total credit balances by your total credit limits. It's recommended that you use less than 30% of your credit limits — but 10% or lower is better. Lenders get nervous if they feel like you rely too heavily on credit.

Tips for lowering your credit utilization:

• Make smaller payments throughout the month rather than waiting for the due date.

• Request a credit limit increase (but keep your spending level). 

• Keep older cards open, even if you don’t use them, because it helps expand your available credit. 

Length of credit history

The longer you've had credit, the more data lenders have to assess your financial habits. This factor looks at the average age of your accounts and your oldest account.

Tips for bulking up your credit history:

• Become an authorized user on a trusted person’s credit card, like a parent or partner. Ideally, you’ll get access to their credit history without the stress of being on the hook for the payments — although you should work out specific details with the primary accountholder. 

• Consider enrolling in a rent reporting service or using Experian Boost, where you can get credit for paying rent, utilities and even streaming service bills on time.

Credit mix

This factor is all about the kinds of accounts on your credit report. Lenders like to see that you can use a variety of credit responsibly – whether that’s installment loans like an auto or student loan or revolving credit like a credit card. 

Tips for mixing up your credit:

• Because credit mix is only worth roughly 10% of your overall score, it’s not worth rushing out the door to open a new account. However, as you continue to build your credit profile, keep the diversity of accounts in mind. 

New credit/recent applications

Every credit application results in a hard inquiry, which causes a small (but temporary) dip in your score. Many applications in a short period of time, however, can do more significant damage. The only exception is when you’re shopping for a rate on a mortgage or car loan. In this case, multiple hard inquiries made between 14 to 45 days are grouped together and counted as one. 

Tip for applying for credit:

• Space out your credit applications every six months, if possible. 

Factors that don’t affect your credit scores

There are some things that are not included in credit score calculations, and these mostly have to do with demographic characteristics.

Your race or ethnicity, sex, marital status, age or where you live aren’t part of your credit score calculation. Your employment history — which can include things such as your salary, title or employer — is also not considered.

» MORE: What’s the average credit score for someone your age?

How can I check and monitor my credit?

You can check your own credit — it's free and doesn't hurt your score — and know what the lender is likely to see.

You can get a free credit score from a personal finance website such as NerdWallet, which offers a VantageScore 3.0 using data from your TransUnion credit report. Many personal banking apps also offer free credit scores, so you can make a habit of checking in when you log in to pay bills.

Remember that scores fluctuate. As long as you keep it in a healthy range, those variations won’t have an effect on your financial well-being. Bigger jumps might be cause for concern, indicating a missed payment or possible identity theft.

NerdWallet recommends placing a free credit freeze with each credit bureau — Equifax, Experian and TransUnion — for the best protection. A credit freeze allows you to use existing credit cards, but prevents criminals from applying for new credit using your personal data because access is blocked a potential lender tries to approve a new application.