Understanding Your Credit Score Range

We all know credit is important and that having a higher credit score is better for your financial health. But what does your numerical score really mean? How is it calculated and how can you improve your score? Read on for a quick look at the five credit score ranges.  

300-579: Poor Credit Score 

If your score falls within this range, it means you are either just starting your credit journey or you’ve faced significant credit difficulties in the past. This may include a history of credit defaults, bankruptcy, missed payments, high credit utilization, a number of credit inquiries in a short period of time (i.e. to take out a loan or apply for a credit card), or unpaid debts.   

With a credit score below 579, you’ll have a tough time accessing financial products such as loans, credit cards and other services. Some utility companies may require an extra deposit and a poor credit score can even impact your ability to rent an apartment. Sadly, living with a poor credit score tends to make life even more expensive—an unfair cycle that can trap people with a low score into poverty.  

If you’re living with a low credit score, speak with a community advocate or financial counselor as soon as possible to investigate your options. You may be able to boost your score by paying down debt or disputing inaccurate information on your credit report.  

580-669: Fair Credit Score 

People with a credit score in the 580-669 range are considered to have a fair credit score. Having a fair credit score usually means you’ve missed some payments, are carrying a large balance on credit cards, or don’t have a very long credit history. Having a limited number of credit accounts can be another factor leading to a fair credit score, as fewer accounts will impact your credit utilization ratio.  

Having a fair credit score typically means you can still access most credit products such as credit cards, loans and mortgages—but you might not qualify for the best terms and rates. Falling within the fair credit score range is almost always a sign that it’s time to work on improving your credit. Prioritize paying off high-interest debt, consider applying for higher credit limits to lower your utilization ratio, and speak with a financial expert if you need more support on debt management.  

670-739: Good Credit Score 

The average national credit score is 715, which means many people in the U.S. have a “good” credit score. Falling into the 670-739 range means you are largely keeping up with credit card and loan payments, not pushing your credit spending too close to your credit limit, and that you probably have a diverse credit mix, with no significant defaults still on your record.  

With a good credit score, you can usually get approved for a personal or auto loan, or a mortgage. You’ll find better deals on credit cards and loans, although you may not be able to access top-tier terms and rewards. Interest rates will be much better than what you’d qualify for with a poor or fair credit score, but you won’t qualify for the best interest rates which are usually available to people with a credit score of 720 or above. If you have a score in the 670-739 range, examine your credit report closely to see which factors may be impacting your credit. A tool like Savvy Money from Harvard FCU gives you free access to recommendations on how to boost your credit score.  

740-799: Very Good Credit Score 

Do you have a sizeable history of always paying your bills in full and on time? Do you typically not borrow more than thirty percent of your total credit limit? Do you have a mix of credit types and not too many recent credit applications? Then it’s likely you have a very good credit score, falling within the 740-799 range. 

People with a credit score about the 740 threshold get access to the best lending options. This could mean lower monthly payments, less interest on auto loans, and credit cards with better rewards, higher sign-up bonuses or lower fees. Higher credit may also give you lower premiums on insurance. With a very good credit score, you’ll also fine it easier to open new lines of credit if you need. Of course, your credit score can always change—to it’s still important to monitor your credit report and stay on top of payments. 

800-850: Excellent Credit Score 

If you’re within the 800-850 range, your credit score is considered excellent. Having an excellent score indicates a high degree of consistency and responsibility when it comes to borrowing. You probably have no late payments on your record and keep low balances on credit cards.  

The difference between having a very good credit score and an excellent credit score is not sizeable. Borrowers with any credit score over 740 usually qualify for the least expensive lending options and can take advantage of the best financial product terms.