Credit Score Ranges Explained: What's Good, Bad and Ugly

Your credit score is a three-digit number between 300 and 850, and it has an outsized impact on your financial life — affecting your ability to rent an apartment, get a mortgage, finance a car and even your insurance premiums. Yet most people have only a vague idea of what their score actually means or how to improve it.

Credit score ranges explained

800–850 — Exceptional. You'll qualify for the best rates on virtually every financial product. Lenders compete for your business. Mortgage rates, car loan rates and credit card APRs will be at their lowest. Less than 20% of the population reaches this tier.

740–799 — Very Good. You'll qualify for excellent rates on most products, nearly indistinguishable from the top tier in most practical situations. This is a realistic and highly valuable target for most people.

670–739 — Good. The national average sits in this range. You'll be approved for most credit products, though not always at the best rates. A $200,000 mortgage at 670 vs 760 could cost you $50,000+ more in interest over 30 years.

580–669 — Fair. Approvals become harder and rates higher. You may be denied for some credit cards and face steep interest on loans. This range is fixable within 12–24 months of positive habits.

300–579 — Poor. Significant difficulty getting approved for most credit. May need secured cards or credit-builder products to start rebuilding. Two to three years of consistent positive behaviour can move you from here to Good.

The five factors and how to optimise each

Payment history (35%): The single most important factor. One missed payment can drop your score by 60–110 points. Set up autopay for at least the minimum on every account — then pay the full balance manually.

Credit utilization (30%): Keep balances below 30% of your limit. Below 10% is even better. If you have a $5,000 limit, try to keep your balance under $500 at statement time.

Length of credit history (15%): Older is better. Don't close your oldest credit card — even if you never use it, its age is helping your score. If you must close a card, close the newest one.

Credit mix (10%): Having both revolving credit (credit cards) and installment loans (car loan, student loan, mortgage) slightly improves your score. Don't take on debt just to improve mix — let it develop naturally.

New credit inquiries (10%): Every hard inquiry temporarily drops your score by 5–10 points. Don't apply for multiple credit products within a short window unless they're the same type (multiple mortgage inquiries in 45 days count as one).