credit

credit score range

The classification system for credit scores — Poor (300-579), Fair (580-669), Good (670-739), Very Good (740-799), Exceptional (800-850).

Example

“Moving from a Fair to Good credit score range saved him $180 a month on his mortgage payment.”

Memory Tip

RANGES matter — each tier unlocks better rates. Know which tier you are in.

Why It Matters

Your credit score range determines whether lenders will approve you for loans, credit cards, and mortgages, and it directly affects the interest rates you receive. A higher range means better borrowing terms and lower costs over time, making it crucial for major financial decisions like buying a home or car.

Common Misconception

Many people believe that checking their own credit score will harm it, when in reality only hard inquiries from lenders affect your score. Understanding which range you fall into helps you know what financial products you qualify for without assuming rejection based on misconceptions.

In Practice

If you have a credit score of 725, you fall in the Good range and might qualify for a mortgage at 6.5 percent interest, but someone with an Exceptional score of 810 could get the same mortgage at 5.8 percent, saving tens of thousands of dollars over 30 years on a 300,000 dollar home loan.

Etymology

Developed by FICO to help lenders and consumers understand what scores mean.

Common Misspellings

credit-score-rangecredit score rangcredt score range

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Other credit terms you should know

credit ratingAn assessment of the creditworthiness of a borrower — indivi…credit scoreA numerical expression (typically 300–850) of an individual'…credit utilizationThe ratio of current revolving credit balances to total avai…defaultThe failure to meet the legal obligations of a loan agreemen…FICO scoreThe most widely used credit scoring model, developed by Fair…hard inquiryA credit check initiated by a lender when you apply for new …