Qualifying
What is a good credit score?
On the standard 300–850 FICO scale, a score of 670–739 is 'Good,' 740–799 is 'Very Good,' and 800+ is 'Exceptional.' Scores below 580 are 'Poor' and limit financing options; 580–669 is 'Fair.'
The full picture
FICO credit score ranges
myFICO defines five standard FICO score ranges on the 300–850 scale:
- Exceptional: 800–850 — Top tier. Qualifies for the best rates and terms across all credit products. Less than 20% of consumers reach this range.
- Very Good: 740–799 — Prime credit. Access to virtually all mainstream credit products at competitive rates. Roughly 25% of consumers.
- Good: 670–739 — Near-prime to prime. Approved for most credit products; rates may not be best-in-market. Approximately 21% of consumers.
- Fair: 580–669 — Subprime. Access to credit is limited; rates are higher. Secured cards, credit unions, and some online lenders remain available.
- Poor: 300–579 — Deep subprime. Most traditional credit products unavailable. Secured cards, credit-builder loans, and co-signers are the primary options.
What each range unlocks
Score thresholds and their practical lending implications:
- 580+: Most secured credit card approvals; FHA mortgage (with 3.5% down); some credit union personal loans.
- 620+: Conventional mortgage qualification begins (though rates improve substantially above this); most auto loan products.
- 670+: Competitive personal loan rates; mainstream unsecured credit card approvals; better auto loan rates.
- 700+: Most business financing products include personal FICO above 700 as a positive signal; best personal loan rates.
- 740+: Best mortgage rates; highest credit card limits; premium rewards cards.
- 800+: Best available rates across virtually all consumer credit products; easiest approvals.
Average U.S. credit score
The average FICO Score in the U.S. was 713 as of year-end 2025 — a two-point decline from 2024, the first annual drop in the national average since 2013 — per Experian's analysis of national credit data. This places the average American in the 'Good' range — meaning most consumers are a meaningful improvement away from 'Very Good' (740+), which unlocks better rates on mortgages, auto loans, and personal financing.
VantageScore ranges vs. FICO ranges
VantageScore 3.0 and 4.0 also use a 300–850 scale but define ranges slightly differently: 781–850 (Excellent), 661–780 (Good), 601–660 (Fair), 500–600 (Poor), 300–499 (Very Poor). Since over 90% of U.S. lenders use FICO in credit decisions, the FICO ranges above are the most relevant benchmarks.
Business financing and personal credit scores
Personal FICO remains a key input in small business financing decisions, particularly for businesses under 2 years old that lack a separate business credit history. Most non-bank business lenders approve above 500–550 FICO with strong revenue; SBA 7(a) loans typically require 640–680+ owner FICO; bank business loans typically require 680+ owner FICO. See what credit score you need for a business loan for the complete breakdown.
Not sure which range you're in? See how to check your credit score for free before you plan around any of the thresholds above.
Sources
- FICO defines five credit score ranges: Exceptional (800–850), Very Good (740–799), Good (670–739), Fair (580–669), Poor (300–579) — on the standard 300–850 scale. — myFICO — Credit Score Ranges
- The average FICO Score in the U.S. was 713 as of year-end 2025 — a two-point decline from 2024, the first annual drop since 2013 — placing the typical American consumer in the 'Good' range. — Experian — What Is the Average Credit Score in the U.S.?
- The CFPB provides consumer education on credit score ranges and their impact on credit product access — including how scores affect mortgage, auto loan, and credit card approvals. — CFPB — Credit Reports and Scores
- FICO scores are used in over 90% of U.S. lending decisions — making the FICO range definitions the most relevant benchmarks for consumers planning a major financing application. — myFICO
Key takeaways
- FICO ranges: Poor (300–579), Fair (580–669), Good (670–739), Very Good (740–799), Exceptional (800–850).
- Average U.S. FICO was 713 at year-end 2025 — 'Good' range, 27 points from 'Very Good.'
- 740+ unlocks best mortgage rates and premium credit card access; 670+ covers most mainstream credit.
- Small business financing: 500+ FICO opens most non-bank options; 640–680+ for SBA; 680+ for bank loans.
- See How to Improve Your Credit Score for a plan to move up the range ladder.
Frequently asked questions
What credit score is considered good?
On the standard 300–850 FICO scale, a score of 670–739 is 'Good' per myFICO's official ranges. 740–799 is 'Very Good' and 800+ is 'Exceptional'; below 670, scores fall to 'Fair' (580–669) or 'Poor' (300–579), which limit financing options.
What is the average credit score in the U.S.?
The average FICO Score in the U.S. was 713 as of year-end 2025 — a two-point decline from 2024, the first annual drop since 2013 — per Experian's analysis of national credit data, placing the typical American consumer in the 'Good' range, about 27 points from 'Very Good' (740+), which unlocks meaningfully better rates on mortgages, auto loans, and personal financing.
What credit score do you need for a business loan?
It depends on the lender type. Most non-bank business lenders approve applicants with 500–550+ FICO given strong revenue; SBA 7(a) loans typically require 640–680+ owner FICO; bank business loans typically require 680+ owner FICO. Personal FICO remains a key input for businesses under 2 years old that lack a separate business credit history.
Does VantageScore use the same credit score ranges as FICO?
No. VantageScore 3.0 and 4.0 use the same 300–850 scale but define the ranges differently: 781–850 is Excellent, 661–780 is Good, 601–660 is Fair, 500–600 is Poor, and 300–499 is Very Poor. Since over 90% of U.S. lenders use FICO in credit decisions, the FICO ranges are the more relevant benchmark for most financing decisions.
Published 2026-05-22 · Updated 2026-09-03 · https://clearvaluelending.com/answers/what-is-a-good-credit-score