How Credit Score Ranges Work
Most consumer credit scores in the U.S. fall on a scale of 300 to 850. The higher the number, the lower the perceived risk to a lender. While different scoring models exist — FICO and VantageScore being the most widely used — lenders generally organize scores into tiers that guide their approval decisions and interest rate offers.
Understanding which tier you occupy is the first step to knowing what options are realistically available to you. It's equally important to recognize that a credit score is just one piece of a lender's evaluation. See how your debt-to-income ratio factors in for a fuller picture of how lenders assess creditworthiness.
This article is for general informational purposes only and does not constitute personalized financial or legal advice. Consult a qualified financial professional regarding your specific situation.
The Five Core Credit Score Tiers
While exact cutoffs vary by lender and scoring model, the tiers below reflect broadly accepted industry conventions.
Credit Utilization
The percentage of your available revolving credit that you're currently using. For example, a $2,000 balance on a $10,000 credit limit equals 20% utilization. Lower utilization generally helps your score.
Subprime Borrower
A borrower considered higher risk, typically with a credit score below 670. Subprime loans often carry higher interest rates to compensate lenders for the additional risk.
Credit Tier
A scoring band — such as fair, good, or exceptional — that lenders use to categorize borrowers and set the terms they'll offer. Different lenders may define tier boundaries slightly differently.
Derogatory Mark
A negative item on your credit report, such as a late payment, collection account, charge-off, or bankruptcy. These marks can significantly lower your score and typically stay on your report for several years.
Secured Credit Card
A credit card backed by a cash deposit you provide upfront, which typically serves as your credit limit. Often used by people building or rebuilding credit because approval requirements are less strict.
Poor: 300–579
Scores in this range signal significant credit risk — typically due to late payments, collections, charge-offs, or very limited credit history. Most conventional lenders will decline applications in this tier, though some specialized lenders may approve borrowers at considerably higher interest rates. Secured credit cards and credit-builder loans are common starting points for rebuilding.
Fair: 580–669
Borrowers here are considered subprime. Approval is possible for certain loans and credit cards, but expect higher rates and lower limits. Some auto lenders and FHA-backed mortgage programs accept scores in this range, though terms will generally be less favorable than for higher tiers.
Good: 670–739
This tier is often described as the entry point into mainstream lending. Most lenders will approve applications, and interest rates begin to reflect lower risk. Borrowers in this range typically have access to a broader selection of credit cards, auto loans, and mortgage products.
Very Good: 740–799
Lenders view scores here favorably. Borrowers in this tier generally qualify for competitive interest rates and more favorable loan terms. You're unlikely to face outright denials for standard credit products.
Exceptional: 800–850
The top tier. Lenders consider these borrowers their lowest-risk customers and typically offer the best available rates and terms. Reaching this range usually requires years of consistent on-time payments, low credit utilization, and a well-managed mix of account types.
~67%
Americans with a Good score or higher
According to FICO data, roughly two-thirds of U.S. consumers score 670 or above on the FICO scale.
35%
Payment history's weight in FICO scores
Payment history is the single largest factor in the FICO scoring model, according to myFICO.com.
716
Average U.S. FICO Score
Experian's State of Credit reports have placed the national average FICO score in the mid-700s in recent years, landing in the 'Good' tier.
What Scores Don't Tell You — and What to Do Next
Credit scores measure the likelihood of repaying debt on time based on past behavior — nothing more. They don't reflect your income, savings, job stability, or overall financial health. Two people with identical scores can face very different lending outcomes depending on their debt-to-income ratio and the specific lender's internal criteria.
Your score also isn't a single fixed number. Scores can vary across the three major credit bureaus because not every creditor reports to all three. Learn why your reports may differ across Equifax, Experian, and TransUnion to avoid surprises when applying for credit.
If you're working to move up a tier, focus on the factors with the greatest scoring weight: payment history and credit utilization. Consistent on-time payments and keeping revolving balances well below your credit limits are the most reliable levers available to most people. For a comprehensive look at building and protecting your score over time, see Credit Scores: The Full Picture from First Card to Mortgage.
Finally, always check your credit report — not just your score — errors on your report can drag down your number unfairly, and disputing inaccuracies is a legitimate step anyone can take.