What Is a Good Credit Score? What Number Counts as “Good” or “Excellent” Credit?

If you’ve ever tried applying for a credit card, car loan, or mortgage, you’ve likely heard phrases like “good credit,” “excellent credit,” or “poor credit.” But what do these labels actually mean? How are they measured? And what number is considered “good” enough to qualify for favorable loan terms?

Understanding credit scores is essential for anyone managing their financial life. Your credit score influences not only your ability to borrow money, but also how much interest you pay, what insurance premiums you get, and in some cases, whether you can rent an apartment. This article breaks down what counts as a good credit score, how different scoring models measure creditworthiness, and why these numbers matter.

What Exactly Is a Credit Score?

A credit score is a three-digit number designed to represent your creditworthiness—basically, how risky it is for lenders to loan money to you. Credit scores are calculated using data from your credit reports, which include your borrowing history, payment behavior, outstanding debts, and the length and type of credit you’ve used.

In the U.S., the two most widely used scoring models are:

1. FICO Score – Used in over 90% of lending decisions

2. VantageScore – Used by many lenders and consumer platforms

Although these models use similar data, the scoring ranges and weight of factors vary slightly.

Credit Score Ranges (FICO and VantageScore)

To understand what counts as “good” or “excellent,” it helps to compare the typical scoring ranges.

FICO Score Range

• 300–579: Poor

• 580–669: Fair

• 670–739: Good

• 740–799: Very Good

• 800–850: Exceptional (Excellent)

VantageScore Range

• 300–499: Very Poor

• 500–600: Poor

• 601–660: Fair

• 661–780: Good

• 781–850: Excellent

While the categories differ slightly, both scoring models generally agree:

• Mid-600s or higher = acceptable credit

• Around 700 = solidly good

• 750 and above = excellent

What Counts as a “Good” Credit Score?

The exact cutoff varies slightly between FICO and VantageScore, but as a rule of thumb:

• A credit score of about 670–739 (FICO) or 661–780 (VantageScore) is considered “good.”

• People in these ranges typically qualify for most loans and credit cards, often with favorable terms.

A “good” score tells lenders that you:

• Pay your bills responsibly

• Don’t use too much of your available credit

• Have a history of managing different types of accounts

Even so, borrowers with “good” credit may not get the best interest rates—that’s where “excellent” credit comes in.

What Counts as an “Excellent” Credit Score?

For the highest tiers:

• FICO: 800–850 (“Exceptional”)

• VantageScore: 781–850 (“Excellent”)

Borrowers in this category are seen as very low-risk and typically receive:

• The lowest interest rates

• The highest credit limits

• Rapid loan approvals

• Premium credit card offers

• More negotiating power in lending situations

An excellent score is a sign of long-term reliability. It usually reflects not just on-time payments, but also strategic credit management over many years.

Why Do These Numbers Matter?

Your credit score affects many areas of your financial life:

1. Loan Approval Chances

Banks, auto lenders, and mortgage companies rely heavily on credit scores to determine whether you qualify.

2. Interest Rates

Credit scores can dramatically change what you pay over the life of a loan.
For example, on a 30-year mortgage, the difference between a “fair” and “excellent” score could cost tens of thousands of dollars in interest.

3. Credit Card Offers

Better scores qualify you for:

• Lower APRs

• Higher credit limits

• Travel rewards cards

• Balance transfer offers with 0% APR

4. Renting an Apartment

Landlords often check credit scores to gauge reliability.

5. Insurance Premiums

In many states, car or home insurers may use credit-based insurance scores to set rates.

6. Utility and Cell Phone Deposits

Good or excellent credit often means you can skip security deposits.

How Are Credit Scores Calculated?

The specific formula varies, but FICO’s model is widely known. Here’s how FICO weighs your credit factors:

1. Payment History (35%)

This is the single most important factor. Late payments, missed payments, or collections severely hurt your score.

2. Amounts Owed / Credit Utilization (30%)

This measures how much of your available credit you’re using.
A utilization rate under 30% is recommended, under 10% is ideal.

3. Length of Credit History (15%)

Longer credit history—older accounts and longer average account age—helps your score.

4. Credit Mix (10%)

Having a mix of credit types helps, such as:

• Credit cards

• Installment loans

• Mortgages

• Auto loans

5. New Credit / Hard Inquiries (10%)

Opening many accounts in a short time can lower your score.

VantageScore uses similar factors, though it weighs them differently.

How to Know Which Score Lenders Use

Because FICO and VantageScore both exist, consumers often wonder which one “matters more.” The answer varies:

• Mortgage lenders almost always use FICO versions (usually older models like FICO 2, 4, or 5).

• Auto lenders may use specialized FICO Auto Scores.

• Credit card issuers commonly pull FICO 8 or FICO 9.

• Bank apps and free credit-monitoring tools often display VantageScore 3.0 or 4.0.

As a consumer, the exact score doesn’t matter as much as the range you fall into. A person with “good” VantageScore will almost always have “good” FICO credit as well.

Is a Good Credit Score “Good Enough”?

For most everyday financial situations, yes.

If your goal is to:

• Rent an apartment

• Get a car loan

• Apply for a typical credit card

…a “good” credit score should be enough to qualify without major obstacles.

However, if you want:

• The very lowest mortgage rates

• Premium credit cards with travel rewards

• The strongest negotiating position

…then an excellent score provides a meaningful advantage.

What If Your Score Isn’t Good Yet?

The good news is that credit scores aren’t permanent. They change as your financial behavior changes.

Here are simple steps to improve your score:

1. Pay every bill on time

Even one late payment can drop your score dramatically.

2. Keep credit utilization low

Try to keep balances below 30% of your limit—ideally under 10%.

3. Don’t close old accounts

Age of credit history matters.

4. Limit new credit applications

Each hard inquiry can lower your score slightly.

5. Watch for errors on your credit report

Mistakes happen, and correcting them can boost your score.

6. Consider a secured credit card if building credit

These help establish positive credit history safely.

How Long Does It Take To Build a Good or Excellent Score?

• From no credit to “good”: 6–18 months of consistent, responsible use

• From “good” to “excellent”: Often several years, because length of history and credit mix take time to mature

Patience and consistency are the keys.

Common Myths About Good Credit Scores

Myth #1: You need to carry a balance to improve your score.

False. Carrying a balance does not help—and it costs interest. Paying your balance in full still builds credit.

Myth #2: Checking your own credit hurts your score.

False. This is a soft inquiry and does not affect your score.

Myth #3: Closing credit cards raises your score.

False. Closing accounts can shorten credit history and increase utilization, both of which can lower your score.

Myth #4: Only income affects your credit score.

False. Income is not part of your credit report or score. Payment behavior and credit management matter far more.

Bottom Line: What Number Counts as “Good” or “Excellent”?

To summarize:

• Good credit starts around 670 (FICO) or 661 (VantageScore).

• Excellent credit begins around 800 (FICO) or 781 (VantageScore).

A good score will qualify you for most borrowing needs, while an excellent score unlocks the best possible financial benefits.

If you’re aiming to improve, focus on simple, long-term habits: paying bills on time, keeping balances low, and avoiding unnecessary new credit. Over time, those behaviors can transform a fair or good score into an excellent one.