Credit scores in the United States run from 300 to 850, with higher being better. The most widely used scoring model is FICO, though VantageScore is also common and uses the same range. These numbers determine whether you get approved for a credit card, loan, or apartment, and what interest rate you pay if you are approved. The gap in interest cost between a 620 score and a 760 score on a 30-year mortgage can be tens of thousands of dollars over the life of the loan.
What the ranges actually mean
Scores below 580 are generally considered poor and make approval difficult for most credit products. Scores from 580 to 669 are fair — approval is possible but rates will be higher. Scores from 670 to 739 are good and qualify for most standard products at reasonable rates. Scores from 740 to 799 are very good, and scores above 800 are exceptional. The practical improvements in available rates and terms become meaningful above 700 and significant above 740. Getting from 620 to 700 is more impactful than getting from 760 to 800.
The five factors that make up your score
Payment history is the largest factor, accounting for roughly 35 percent of a FICO score. A single missed payment can drop a good score by 50 to 100 points. Credit utilization, the percentage of available credit you are using, accounts for about 30 percent. Length of credit history accounts for about 15 percent. Credit mix, having both revolving credit like cards and installment loans, accounts for about 10 percent. New credit inquiries account for the remaining 10 percent. Paying on time and keeping utilization low addresses 65 percent of the score by itself.
The fastest ways to improve a score
Reducing credit card balances has the most immediate impact because utilization is recalculated every month when your statement closes. Paying a card from 80 percent utilization down to 20 percent can improve a score by 30 to 50 points within 30 to 60 days. Becoming an authorized user on someone else's account with a long history and low utilization can add positive history to your report quickly. Disputing and correcting errors on your credit report, particularly late payments that were actually made on time, can produce large improvements if errors are present.
What to avoid while building your score
Missing a payment, even by a few days after the 30-day mark, causes significant damage that takes a year or more to fully recover from. Opening several new accounts in a short period generates multiple hard inquiries and lowers the average age of accounts. Closing old accounts raises utilization if you carry balances and removes the history length benefit. The behaviors that protect a good score are the same ones that build one: consistent on-time payments, low balances relative to limits, and minimal new credit applications.
You can check your score for free
Many credit cards now show your FICO score on your monthly statement or in your app at no cost. Credit Karma and similar services provide free VantageScore access, which tracks the same underlying factors and moves in the same direction as FICO even if the exact number differs. Checking your own score is a soft inquiry and does not affect it regardless of how often you look.