Key takeaways
- FICO scores range from 300 to 850.
- Credit scores below 670 could use some improvement.
- As of April 2017, the average FICO credit score in the U.S. is 700.
Your credit score says a lot about you. Whether you’re buying a car or house, or refinancing your student loans, lenders look at your credit score to gauge how reliable you are as a borrower. This information is then used to determine your interest rate.
Generally speaking, a credit score 670 and above is considered “good” by most lenders. What exactly is your credit score saying about you?
What your credit score means
To help explain the separation between good credit scores and the not-so-good, let’s reference FICO®, one of the most common types of scores.
FICO scores range anywhere from 300 to 850. They also come in five tiers:
- 850-800:If this is your credit score, you get an A+. Excellent work.
- 799-740:Pat yourself on the back — scores in this range indicate you’re a very good borrower.
- 739-670:This is a good credit score. However, you still have room to improve to try to capitalize on better rates.
- 669-580:These scores fall into the “needs improvement” category and are considered less than average.
- 579-300:Scores in this range can cause a number of problems, including the possibility that lenders don’t approve your loan at all.
What is the average credit score?
According to FICO, the average credit score in the U.S. rose to 700 in April 2017, markingthe first timeit’s been above the 600s since FICO began recording the average in 2005.
More information
Credit is critical to your financial wellbeing. It can be used as an asset to aid with major purchases in your life. To learn more on how to build credit, please call 1-888-333-5145, visit usonline, or Ask a Citizen atyour nearest Citizens branch.
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