Is Your Credit Score Good Enough? (See Where You Stand)

Why do so many people stress over their credit score? Because having a good one can save you big bucks over the years.

What makes a credit score “good”? Keep reading to find out, as we’ll take a deeper dive into the five score ranges and how they can paint a picture of your credit.

Fico Score Breakdown

The average person has a credit score of 695. Here’s a closer look at what above and below-average credit scores mean.

800 to 850 – Exceptional Credit

If you sit in this range, congratulations - your part of the A+ credit score club. Only 15 percent of people have exclusive membership in this club, and it comes with plenty of borrowing perks.

What does the average A+ credit score owner look like? Someone with an excess of $10,000 in unused credit, plus a payment history that is unblemished.

If your score sits below this threshold, don’t feel bad. There are several ways to increase your score, should you take the time to sit down, analyze your credit, and make the proper moves.

740 to 799 – Very Good Credit

It may not be exceptional, but having a credit score sitting in this very good range makes you an above-average borrower.

A very good borrower often has a solid payment history. It may have a blemish or two, but bills were likely paid on time over the last few years.

A diverse credit mix is probable too. You may have a student loan, home loan, personal loan, car loan, and several credit cards that are helping you build a clear borrowing picture to creditors.

670 to 739 – Good Credit

Most borrowers sit in this range. While it’s not perfect, having good credit could mean exceptional borrowing status in the future.

A good borrower usually pays bills on time and has a history of being able to handle larger debts.

580 to 669 – Fair Credit

If you’re new to credit, you may be considered fair in terms of your borrowing background. A limited credit history often makes its home here, so if you’re a student, don’t feel bad. You’re just getting started.

While being new to credit can put you in the fair range, so can excessive late payments, especially if they were recent.

Can a person with fair credit receive financing? Yes, although it will likely come at a higher interest rate from a bank.

300 to 579 – Very Poor Credit

Did you declare bankruptcy in the last seven to ten years? If so, your credit score is likely to sit in the very poor range. While you can climb out of it by paying your bills on time and making other moves, very poor credit makes it harder to secure financing, but not impossible.

Many lenders may be wary of giving you credit approval. If they do approve you, an upfront deposit may be required. Such is the case with a secured credit card.