Bottom line: FICO considers 670 the floor of "good," but most lenders reserve their best rates for borrowers at 740 or above. The gap between a 620 and a 740 score costs the average borrower more than $100,000 over a lifetime of borrowing.
"Good" is relative — but not in a vague way. There are five defined ranges, and the distance between them translates directly into dollars.
The FICO Score Ranges
FICO scores run from 300 to 850. Here is how lenders read them:
| Range | Label | What it means |
|---|---|---|
| 800–850 | Exceptional | Best rates, instant approvals, highest limits |
| 740–799 | Very Good | Near-best rates; lenders compete for you |
| 670–739 | Good | Most products available; rates are competitive |
| 580–669 | Fair | Approved for some products; rates noticeably higher |
| 300–579 | Poor | Limited options; secured products or co-signers required |
The label "good" starts at 670. In practice, the rate difference between a 670 and a 740 is meaningful — often 0.5 to 1.0 percentage points on a mortgage or auto loan.
Where Most Americans Land
According to FICO's most recent data, about 57% of Americans have a score of 700 or higher. The average FICO score in 2025 was approximately 717 — technically in the "good" range, but well below the 740 threshold where lenders offer their best pricing.
About 16% of Americans are in the "poor" range (below 580), and another 17% are in the "fair" range (580–669). Together, that's roughly one in three Americans paying materially higher rates on every borrowing product they use.
What "Good" Unlocks in Practice
- 670+ is the minimum to qualify for most unsecured credit cards, personal loans, and standard mortgage programs.
- 740+ is where lenders quote their advertised rates. Below this, the rate they give you is higher than what they advertise.
- 800+ is the threshold for the absolute best terms, but the practical improvement from 740 to 800 is smaller than from 670 to 740.
On a $400,000 30-year mortgage, the rate difference between a 620 and a 740 score is currently about 1.5 percentage points. That compounds to roughly $138,000 in additional interest over the loan's life — for the same house, the same lender, the same loan amount.
Car loans tell a similar story. The spread between rates offered to borrowers with "fair" vs. "very good" credit is typically 4–6 percentage points. On a $35,000 auto loan over 60 months, that difference is about $3,600 to $5,400 in extra interest.
The Score Lenders Actually Pull
Most major lenders — mortgage companies, auto lenders, credit card issuers — use FICO scores, not VantageScore. But FICO has dozens of versions. Mortgage lenders typically use FICO 2, 4, and 5 (one from each bureau). Auto lenders often use FICO Auto Score 8. Credit card issuers usually use FICO Score 8 or 9.
The free scores available through your bank or a service like Credit Karma use VantageScore, which usually differs by 20–40 points from your FICO score. This is why your score can look different depending on where you check it.
The Fastest Ways to Move from "Fair" to "Good"
If you are in the 580–669 range, two factors move the needle fastest:
Utilization (30% of your FICO score). Pay your credit card balances down before the statement closing date — not just before the due date. What matters to FICO is the balance reported on your statement, not what you eventually pay. Getting utilization below 10% across all cards can add 40–60 points in two billing cycles.
Payment history (35% of your score). A single missed payment stays on your report for seven years and can drop a good score by 80–100 points. If you have a missed payment, the damage diminishes over time but does not disappear until the seven-year mark.
Age of accounts and credit mix matter too, but they move slowly and are harder to optimize directly.
What "Exceptional" Buys You
The practical difference between a 740 and an 800+ score is smaller than most people expect. At 740, you already qualify for most lenders' best advertised rates. The improvements above 800 tend to show up in credit limit increases, easier approvals for premium products, and occasionally a slightly lower rate on jumbo mortgages — not in dramatic savings.
The most valuable jump is from below 670 into the 700–740 range. That is where borrowing costs drop the most.
Sources: FICO score distribution data (Experian, 2025); average mortgage rate spreads by credit tier (Freddie Mac Primary Mortgage Market Survey, 2026); auto loan rate data by credit band (Experian State of the Automotive Finance Market, 2025).
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