While an individual’s credit score will change over time, the credit score range that covers everything from the worst credit scores to the best credit scores remains fixed. The credit score range, while fixed, will depend on the credit score model used. Determining what is a good credit score can be a moving target at times.
When most banks and lenders talk about a credit score, they are usually referring to the FICO score. The FICO score model is the most common credit score used in lending. The FICO scores have a range from 300-850.
Although these numbers represent the highest credit score available as well as the lowest, there is no official standard that dictates what a good score is. An acceptable credit score for one lender may be an unacceptable number for another.
Since FICO scores are frequently used by banks and lenders, there are credit score ranges with the FICO score model that generally speaking indicate excellent credit or good credit or even bad credit. These numbers are not fixed. The absolute credit score range, 300-850 for FICO scores, is fixed but the credit scores that are assessed as excellent or poor will change based on the bank or lenders discretion.
An approximate credit score range running from excellent credit to poor credit based on FICO scores is as follows:
An excellent credit score is 720 or above
A good credit score is from 680 to 720
An average credit score is 620 to 680
A fair credit score is 580 to 620
A poor credit score is 540 to 580
A bad credit score falls under 540
For most lenders and credit providers, FICO credit scores above 700 are considered very good and a sign of an excellent credit history. FICO scores below 600 indicate high risk to the lenders and may result in a credit applicant being denied credit or being charged a higher interest rate.
An individual’s credit score is created from information on their credit report. An individual’s credit score will change based on how their credit report changes including payment histories on loans and credit card debt. Without question, higher credit scores make it more likely an individual will be approved for a credit request and pay a lower interest rate on the credit request.
Additional resources regarding what is a good credit score and credit score ranges can be found at:
Highest Credit Score
Credit Scores Range
What is a Good Credit Score
300 Credit Score
500 Credit Score
700 Credit Score
800 Credit Score