Good vs. Poor Credit Score

A good credit score typically falls within a specific range, depending on the scoring model used. The most common credit scoring models are FICO and VantageScore, both of which range from 300 to 850. Here’s how they generally classify the ranges:

FICO Score Ranges:

• Exceptional: 800 - 850

• Very Good: 740 - 799

• Good: 670 - 739

• Fair: 580 - 669

• Poor: 300 - 579

VantageScore Ranges:

• Excellent: 781 - 850

• Good: 661 - 780

• Fair: 601 - 660

• Poor: 500 - 600

• Very Poor: 300 - 499

What Is Considered a "Good" Credit Score?

• A good credit score typically starts at around 670 for FICO and 661 for VantageScore. Scores in these ranges indicate that you are a relatively low-risk borrower, which can help you qualify for loans, credit cards, and other forms of credit at favorable interest rates.

Benefits of a Good Credit Score:

1. Lower Interest Rates: Qualify for loans and credit cards with lower interest rates, which can save you money over time.

2. Higher Credit Limits: With a good score, lenders are more likely to offer higher credit limits.

3. Better Loan Approval Chances: More likely to be approved for mortgages, auto loans, and personal loans.

4. Favorable Insurance Rates: Some insurance companies use credit scores to set premiums.

5. More Rental Options: Many landlords check credit scores to determine if an applicant is a reliable renter.

6. Greater Negotiating Power: A good credit score gives you leverage to negotiate better terms and rates.

If you have a "good" score, continue maintaining healthy credit habits to improve it further or sustain it over time.