-
Commitment to our readers
18 years
Helping you save money
Reviewed
by experts
Cited by
major publications
Finder maintains full editorial independence to ensure for our readers a fair assessment of the products, brands, and services we write about. That independence helps us maintain our reader's trust, which is what keeps you coming back to our site. We uphold a rigorous editorial process that ensures what we write and publish is fair, accurate, and trustworthy — and not influenced by how we make money.
We're committed to empowering our readers to make sound and often unfamiliar financial decisions.
We break down and digest information information about a topic, product, brand or service to help our readers find what they're looking for — whether that's saving money, getting better rewards or simply learning something new — and cover any questions you might not have even thought of yet. We do this by leading with empathy, leaning on plain and conversational language that speaks directly, without speaking down.
What’s a good FICO score?
A good FICO score ranges between 670 and 739, while a very good score falls between 740 and 799. Most lenders use FICO’s credit scoring model when determining someone’s creditworthiness.
Rating | Score |
---|---|
Poor | 300–579 |
Fair | 580–669 |
Good | 670–739 |
Very good | 740–799 |
Exceptional | 800+ |
What’s a good VantageScore?
Similar to FICO, VantageScore’s newest credit models range between 300 and 850. A good, or prime, VantageScore falls between 661 and 780, while a very good, or superprime, score ranges from 781 to 850.
Rating | Score |
---|---|
Subprime | 300–600 |
Near Prime | 601–660 |
Prime | 661–780 |
Superprime | 781–850 |
What’s a good credit score by age?
A credit score above 660 is a good score, no matter your age.
Your actual age does not impact your credit score, but the average age of your credit accounts does. Length of credit history makes up 15% of your FICO credit score. The older your credit history, the better.
So, while an older borrower with a long history of loans, credit cards and on-time payments may have a better credit score than a 20-year-old, your physical age has no bearing on your rating.
If you’re unsure if you have a good credit score, compare where your credit score falls against peers in your generation.
Average credit score by age
Most Americans fall between a good and excellent credit score, according to Finder’s Consumer Confidence Index. Older generations, such as gen X and baby boomers, have the most borrowers at 740 and up, which is considered “very good.”
Generation | Poor (300-579) | Fair (580-669) | Good (670-739) | Very Good/Excellent (740-850) | Don’t know score |
---|---|---|---|---|---|
Baby boomer | 3% | 11% | 11% | 69% | 6% |
Gen X | 7% | 20% | 24% | 41% | 8% |
Gen Y | 8% | 22% | 29% | 37% | 4% |
Gen Z | 6% | 20% | 31% | 32% | 11% |
What do lenders consider a good credit score?
Each credit scoring model is slightly different, and each industry uses specific models when determining a consumer’s creditworthiness. When you apply for credit, lenders look at one or more of your credit scores that make up your credit report.
For example, FICO has at least 16 credit versions lenders can access when deciding on credit card, mortgages and car loans. The most commonly used by lenders is FICO 8.
There’s also FICO Auto Scores, which has scores ranging from 250 to 900. These scores place more importance on your auto loan history. For mortgages, lenders generally request all your credit reports and FICO scores generated from each report. Here’s a breakdown of what that looks like:
- FICO® Score 2, or Experian/Fair Isaac Risk Model version 2
- FICO® Score 4, or TransUnion FICO® Risk Score 04
- FICO® Score 5, or Equifax Beacon 5
Benefits of having a good credit score
Whether you’re applying for a mortgage, car loan or personal loan, a strong credit profile signals to lenders that you’re a responsible borrower and less of a credit risk. Good credit borrowers are more likely to get approved for a loan or credit. You’re also more likely to get lower interest rates and APRs, saving you on the loan’s overall cost. Plus, a good credit score gives you more leverage when negotiating with lenders.
7 strategies to get a good credit score
If you’re looking to improve your credit score, there are several credit-building strategies you can take advantage of. Here are a few to get you started:
- Check your credit report regularly. Regularly monitor your credit report for inaccuracies or discrepancies and promptly dispute any errors.
- Pay your bills on time. Timely payments on bills, loans and credit cards are essential for building a positive credit history.
- Reduce credit card balances. Aim to keep your credit card balances low, ideally below 30% of your credit limit, to demonstrate responsible credit usage.
- Diversify your credit types. A mix of credit types, such as installment loans and revolving credit, can positively impact your credit score.
- Become an authorized user. Ask a family member or friend with good credit if you can be added as an authorized user on their credit card to benefit from their positive credit history.
- Explore credit-building cards. Consider credit-building cards that don’t perform a credit check during the application.
- Create a budget. Develop a realistic budget to manage your finances effectively and ensure you can meet your financial obligations.
Bottom line
Building and maintaining a good credit score helps you save money on loans and get more favorable terms in the long run. If you aren’t where you want to be, you have options to build your credit over time.
Ask a question
2 Responses
More guides on Finder
-
Chime Secured Credit Builder Visa® Credit Card Review
The Chime Credit Builder Card can help you build credit without charging interest and doesn’t require a deposit or monthly fee.
-
Apps Like Self
Top apps like Self that build credit include Kikoff, Grow Credit, Chime Secured Credit Builder Card, Credit Strong and Cleo.
-
Apps Like Kikoff
Top alternatives to Kikoff for easy credit-building include Self, Cleo, Grow Credit, Fizz and One Finance.
-
Kovo Credit Builder review
Kovo Credit Builder helps you build your credit history for around $10 per month and reports to four credit bureaus. Many competitors do not.
-
8 best credit-building apps
The best credit-building apps include Self Credit Builder, Step, Fizz, Cred.ai, Cleo, Grow Credit and Credit Karma Credit Builder.
-
Lexington Law credit repair review
Lexington Law is a credit repair company, but it carries a poor reputation.
-
Kikoff Credit Building review
Kikoff offers several credit-building products, including a secured card with no monthly fee, no interest charges and a low minimum deposit.
-
11 Prepaid Credit Cards to Build Credit
Prepaid credit cards are secured cards that work like debit cards to avoid APR and build credit. Top options include Step, Current, Varo and more.
-
Extra Debit Card Review
The Extra debit card is a debit card that builds credit without charging interest like traditional credit cards do. Review Extra’s features, fees and more.
-
Cushion app review
Cushion is an all-in-one banking app that helps you track your spending and build credit without interest charges. See if it could be right for you.
How do I get a better score?
Hi Kashida,
Thank you for your inquiry.
If you need to improve your credit score you may want to consider the following pages for your guide an reference.
1. Improve your credit score – http://bit.ly/2flh8S8
2. How can I improve my credit report? – http://bit.ly/2x0177N
I hope this information has helped.
Cheers,
Harold18