What is a Good Credit Score in the United States?

Your credit score is a critical factor that lenders use to determine your creditworthiness when you apply for loans or credit cards. A good credit score can help you get approved for better interest rates, lower fees, and higher credit limits. On the other hand, a poor credit score can make it challenging to qualify for loans or credit products, and you may end up paying more in interest charges and fees.

According to a recent study by Forbes, the average FICO credit score in the United States is 711. However, the study also found that over one-third of U.S. consumers had subprime credit scores (below 670). This means that many Americans may face difficulties obtaining credit or may have to pay higher interest rates and fees due to their credit score.

In this article, we will explore what a good credit score is, how credit scores are calculated, and why they matter. We’ll also provide some tips on how to improve your credit score, dispute errors on your credit report, and build good credit habits.

Understanding Credit Scores

Your credit score is a numerical representation of your creditworthiness, calculated based on various factors such as your credit history, payment behavior, and outstanding debts. The most commonly used credit score model is the FICO score, which ranges from 300 to 850. The higher your FICO score, the more likely lenders are to approve your credit applications and offer you favorable terms.

To determine your credit score, credit bureaus gather information from your credit report, which contains details about your credit accounts, payment history, and other financial activities. They then use a formula to calculate your score, taking into account factors such as your payment history, outstanding balances, length of credit history, and new credit applications.

It’s important to note that your credit score is not a fixed number, but rather a snapshot of your credit history at a specific point in time. Your score can change over time as you make payments, open or close accounts, or apply for new credit. As such, it’s crucial to maintain good credit habits and regularly monitor your credit report to ensure that it is accurate and up-to-date.

What is a Good Credit Score in the US?

A good credit score can vary depending on the lender or credit issuer you’re working with. However, in general, a FICO credit score of 670 or higher is considered “good,” while a score of 740 or higher is considered “excellent.” Scores below 670 are considered “fair” or “poor,” which can make it more difficult to qualify for credit or obtain favorable terms.

It’s essential to understand that credit scores can vary depending on the credit bureau used and the credit scoring model. For example, the VantageScore credit score model uses a scale that ranges from 300 to 850, with a score of 661-780 considered “good,” and a score of 781 or above considered “excellent.”

While a good credit score is important for obtaining credit, it’s not the only factor that lenders consider. They will also look at your income, employment history, and other financial factors when making a lending decision.

If your credit score is below 670, there are several steps you can take to improve it. First, review your credit report to ensure that there are no errors or inaccuracies that are dragging down your score. You can dispute any errors with the credit bureau to have them corrected.

Next, focus on paying your bills on time and reducing your outstanding debts. Making timely payments and keeping your balances low can help boost your credit score over time. It’s also essential to avoid opening new credit accounts unless necessary, as this can lead to multiple inquiries on your credit report, which can lower your score.

Tips for Improving Credit Scores

Improving your credit score can take time and effort, but it’s a crucial step in achieving your financial goals. Here are some tips to help boost your credit score:

  1. Make Payments on Time: Payment history is the most significant factor in determining your credit score, so it’s crucial to make payments on time. Late payments can stay on your credit report for up to seven years and can have a significant negative impact on your score.
  2. Reduce Outstanding Balances: Another factor that affects your credit score is the amount of outstanding debt you have. Keeping your balances low and paying off high-interest debt can help improve your credit score over time.
  3. Monitor Your Credit Report: Regularly monitoring your credit report can help you spot errors or inaccuracies that may be dragging down your score. You’re entitled to one free credit report from each of the three major credit bureaus per year, so take advantage of this to stay on top of your credit health.
  4. Avoid Applying for Too Much Credit: When you apply for new credit, the lender will typically run a hard inquiry on your credit report, which can lower your score. Try to limit the number of credit applications you submit and only apply for credit when you really need it.
  5. Keep Old Credit Accounts Open: The length of your credit history is another factor that affects your credit score. Keeping old credit accounts open and in good standing can help boost your score over time.

By following these tips, you can help improve your credit score and achieve your financial goals. Remember that improving your credit score takes time, so be patient and persistent in your efforts.


Your credit score is a crucial aspect of your financial health and impacts your ability to obtain credit, secure favorable loan terms, and achieve your financial goals. Understanding what constitutes a good credit score, how to monitor your credit report, and how to improve your score can help you take control of your credit health.

In this article, we’ve discussed what a good credit score is in the US, how credit scores are calculated, and tips for improving your credit score. By implementing these tips and being mindful of your credit behavior, you can work towards achieving a good credit score and unlocking more financial opportunities.

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