So you're wondering what is considered a good credit score? Let me tell you something straight - when I first started building credit, I thought hitting 700 was like winning the lottery. Then I tried to refinance my car loan and got hit with higher rates. That's when I realized "good" isn't always good enough.
Here's the raw truth they don't tell you: Credit scores feel like moving targets because they are. What's considered a good credit score in 2024 depends on who's looking at it and why. Mortgage lenders? Auto dealers? Your new landlord? They all see things differently.
The Credit Score Breakdown: FICO vs. VantageScore
We need to talk about the two big players - FICO and VantageScore. FICO's been around since dinosaurs roamed (well, 1989), and it's used in about 90% of lending decisions. VantageScore came later but is gaining ground fast.
Honestly? I find VantageScore's rating system unnecessarily confusing. They call scores between 661-780 "good". But since most lenders prioritize FICO, let's focus there.
| FICO Score Range | Rating | What It Means For You |
|---|---|---|
| 800-850 | Exceptional | Lowest rates, instant approvals, premium perks |
| 740-799 | Very Good | Excellent rates, easy approvals |
| 670-739 | Good | Average rates, most approvals |
| 580-669 | Fair | Higher rates, possible denials |
| 300-579 | Poor | Credit card denials, security deposits required |
Notice that 670-739 sweet spot? That's what's generally considered a good credit score. But here's where it gets messy...
Where "Good" Actually Falls Short
Last spring, my cousin applied for an apartment with a 710 score - solidly in "good" territory. The landlord rejected him because their cutoff was 720. For mortgages? Many lenders reserve their best rates for 760+ scores.
What is considered a good credit score for credit cards? With rewards cards like Chase Sapphire Preferred? They typically want 720+. Store credit cards might approve you at 650.
The reality check: "Good" means you'll likely get approved for most things, but you'll pay more than someone with excellent credit. A 30-year mortgage on a $400,000 home costs $150 more per month at 6.5% (good credit) vs 5.8% (excellent credit). That adds up to $54,000 over the loan!
The 5 Factors That Actually Move Your Score
Forget those "quick fix" schemes. After helping dozens of friends repair credit, I've seen what works. Here's what matters most:
- Payment History (35%) - Late payments hurt like hell. One 30-day late can drop your score 100+ points. Set up autopay for minimum payments immediately
- Credit Utilization (30%) - This is the ratio of your balances to limits. Keep it below 30% overall and per card. Maxed cards scream risk
- Credit Age (15%) - Don't close old accounts! My oldest card is a crappy Capital One Platinum ($49 annual fee) from college. I keep it active buying $5 Amazon gift cards quarterly
- Credit Mix (10%) - Lenders want to see installment loans (mortgage, auto) AND revolving credit (credit cards)
- New Applications (10%) - Each hard inquiry knocks off 5-10 points. Rate shopping for mortgages/autos within 45 days counts as one inquiry
What surprises most people? Utilization has a memory. If you maxed cards last month but paid them off today, your score rebounds immediately. But late payments? They linger for 7 years.
| Action | Short-Term Impact | Long-Term Impact |
|---|---|---|
| 30-day late payment | -60 to -110 points | Stays for 7 years |
| Maxing a credit card | -10 to -45 points | None after paying down |
| Opening new card | -5 to -10 points | Positive after 6 months |
Industry-Specific Credit Expectations
Defining what constitutes a good credit score gets murky when lenders have different standards:
Mortgage Lenders Are Toughest
For conventional loans:
- 620+ - Bare minimum approval
- 740+ - Best interest rates
- 760+ - Ideal for jumbo loans
FHA loans might accept 580 scores but you'll pay higher mortgage insurance premiums. VA loans? Usually 620+.
Auto Loan Reality Check
Dealerships advertise "bad credit approved!" but wow do they punish you for it:
- 720+ - 0-3% APR deals
- 650-719 - 4-8% APR
- 600-649 - 10-15% APR
- Below 600 - 15-25% APR or denial
See why settling for "good" costs you? That's $3,000+ extra interest on a $25,000 car loan.
Credit Cards: The Tier System
What is considered a good credit score for premium cards?
- 780+ - Chase Sapphire Reserve, Amex Platinum
- 720+ - Travel rewards cards (Capital One Venture)
- 670+ - Cashback cards (Citi Double Cash)
- 580+ - Secured cards (Discover it Secured)
Pro tip: Credit card companies use different bureau reports. Capital One pulls all three bureaus. American Express loves Experian. Check your state's common pull at CreditBoards.com.
Free Credit Monitoring Tools That Don't Suck
You don't need paid services. Seriously - these free options work:
- Experian Free Credit Monitoring - Gives actual FICO 8 score monthly
- Credit Karma - VantageScore 3.0 from TransUnion/Equifax (good for alerts)
- AnnualCreditReport.com - Weekly free reports until 2023 (extended due to COVID)
- Your Credit Card - Discover, Capital One, BofA all offer free FICO scores
I check Credit Karma weekly because their alerts are instant. When my dentist's billing service messed up and sent a $50 bill to collections? I knew within hours.
Fix Your Credit Faster Than You Think
From 580 to 780 in 18 months - that's what my friend achieved with these steps:
Emergency Credit CPR (Scores Below 600)
- Dispute errors IMMEDIATELY - 34% of reports have mistakes
- Negotiate pay-for-delete agreements with collectors
- Get added as authorized user on someone's old card (Cost: $0)
The 650-720 Grind
- Aggressively lower utilization below 10%
- Install Self Credit Builder Loan ($25/month)
- Request credit limit increases every 6 months
Breaking Through to 750+
- Never use more than 10% of any card
- Add mix with small personal loan (Even $500 from Upstart helps)
- Become primary account holder for utilities with Experian Boost
Don't waste money on credit repair companies. I tried Lexington Law once - paid $129/month for six months and they did nothing I couldn't do myself.
Credit Score Myths That Drive Me Crazy
Let's bust some dangerous misinformation:
Myth: "Checking your own score hurts it"
Truth: Soft inquiries don't affect scores. Check daily if you want.
Myth: "You need to carry a balance to build credit"
Truth: Paying in full monthly is ideal. Interest doesn't help your score.
Myth: "Closing old cards helps your score"
Truth: It trashes your credit age and utilization ratio. Keep them open!
Your Burning Credit Questions Answered
How long does it take to go from bad to good credit?
Typically 12-24 months with consistent effort. Major negatives (bankruptcy, foreclosures) take 3-7 years to fade.
Is 700 a good credit score in 2024?
It's decent - you'll qualify for most things but not get premium rates. Mortgage lenders consider 740+ excellent.
What's the fastest way to boost my score 50 points?
Reduce utilization below 10% immediately. If you have collections, negotiate pay-for-delete agreements.
Do debit cards build credit?
Nope. Only credit products reported to bureaus help. Get a secured card if starting out.
How often do credit scores update?
Whenever creditors report - usually monthly after billing cycles close. Some update weekly though.
The Bottom Line
Determining what is considered a good credit score depends on context. While 670+ technically qualifies as "good", you're leaving money on the table if you stop there.
Mortgage lenders reserve their best rates for 740+. Premium credit cards want 780+. Landlords? They keep raising their minimums yearly.
I won't sugarcoat it - credit building sucks. It's slow and frustrating. But when I finally hit 760 last year? My car insurance dropped $400 annually. Refinanced my mortgage saving $280/month. Got approved for the Chase Sapphire Reserve with 100,000 bonus points.
That's the real difference between "good" and "great". Thousands yearly staying in your pocket instead of funding banks' profits.
The game may be rigged, but now you know how to play it.
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