what is decent credit

What is a decent credit score? Good credit scores are 690-719 on the scale used for VantageScores and FICO scores.

Scores between 690 to 719 are generally good credit. Credit scores between 690 and 719 are exceptional, while scores between 630-689 and 689 are fair. Scores below 630 are bad credit.

FICO, the most well-known credit scoring system, and VantageScore, its competitor, both use a range of 300-850.

What is a good FICO Score?

Fair Isaac Corp. is the company that developed FICO, the credit scoring system. It draws on data from three credit reporting agencies: TransUnion, Equifax, Experian, and TransUnion.

FICO Score is a number that indicates a consumer’s creditworthiness. It can range from 300 to 850.

According to FICO’s website, a good FICO score is between 670- 739. FICO states that scores between 580-669 and 739 are fair. Scores between 740-799 and 799 are very good. Anything over 800 is considered exceptional.

FICO reported that the average credit score for 2021 was 716. This falls within the acceptable range.

What makes a VantageScore good?

VantageScore, FICO’s rival, produces a similar score using the same credit report data from all three bureaus. BFN gives you a credit score for free using VantageScore credit reports and TransUnion credit reports.

VantageScores between 661-780 are generally a “prime credit tier” by the company. VantageScores greater than 780 are “superprime,” while scores between 601 and 660 are “near-prime.” VantageScores lower than 600 are termed “subprime.”

A good credit score

Good credit is important as it will determine whether you can borrow money and how much interest you’ll have to pay.

A good credit score can help with:

  • A credit card that is unsecured and offers a good interest rate or a balance transfer card.
  • It is possible to lease or loan a car.
  • A mortgage with a favorable rate of interest
  • If you don’t have an Emergency Fund or run out, the ability to open credit to pay for expenses in a crisis.

Good credit scores can also help in other ways. In many states, those with better credit ratings pay less for auto insurance. Moreover, landlords may use credit scores to screen tenants.

A good credit rating is important, regardless of whether you intend to apply for credit.

Questions frequently asked

Lenders define a good credit score as:

As they decide whether or not to give you credit, lenders such as mortgage providers and credit card issuers may have their standards for what “good credit” is.

So what is a decent credit score? A high credit score allows you to get the things you want or need, such as access to credit in a pinch or lower mortgage rates.

What factors affect your credit score?

Two factors are most important in determining your credit score: Your payment history (whether you pay on time) and your credit utilization (how much credit you have available).

Other factors are important but less weighty: how long you have credit, whether your credit history is varied and how often you apply for credit.

How to build a strong credit score

Your credit score will be if you have good credit habits and practice them consistently. Here are some things you should do:

  • Be punctual with your payments. This is crucial because your payment history will have the greatest impact on your score. A missed or late payment could cause severe damage to your credit score. It can also stay on your credit report for up to seven years.
  • Keep your credit card balances below your credit limit. Credit utilization should be under 30%. Lower is better. Your credit score will reduce by high utilization. However, you can minimize the damage if you can lower your balances. Credit reports will show lower utilization. You may also reduce your utilization by obtaining a higher credit limit or becoming an authorized user on a card with a small limit.
  • Credit accounts should remain open unless you have a compelling reason to close them, such as high fees, poor service, or other reasons. Your score won’t reduce by keeping older accounts open. It helps to increase your average age of accounts. Closing an account reduces your overall credit limit, which can increase your credit utilization.
  • Do not submit multiple credit applications within a short period. Credit checks to determine creditworthiness can lead to a temporary drop in your score. However, many applications in a short period can increase your risk.
  • You should monitor your credit reports.

Common questions regarding credit scores

Is 700 good credit?

A 700 credit rating is generally good. Good credit is more likely to be approved for credit. However, lenders may also consider other factors. You’re more likely to receive favorable terms, such as a lower interest rate.

What’s an excellent credit score?

High credit scores range from 720 to the highest score of 850. Not everyone needs to score 850. Scores above 800 will get you the best credit terms.

What’s a fair credit score?

A fair score falls within the 630-689 area. It might be harder to get credit or the terms you desire.

What’s a bad credit score?

Scores below 630 fall within the poor credit range. These tips can help you build your credit profile.


credit bureaus
checking your credit
credit mix
fico and VantageScore
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bill on time
VantageScore 3.0
credit scoring models

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