A Guide to American Credit Score Ranges: Where Do You Fit?

Credit scores can sometimes feel like secret codes. It can be hard to tell where a score comes from, or why it seems to go up or down at the slightest provocation. It can also be tough to understand where you stand on the credit score spectrum — and what your score really says about your ability to secure new financing.

The good news is that, while different credit scoring companies do sometimes calculate scores differently, they’re fairly transparent about what makes your score rise or fall. And if you keep doing all the right things, your credit score is pretty much guaranteed to improve over time. Here’s what you need to know about credit score ranges, how they impact your ability to borrow or refinance, and how to polish up your credit file going forward.

Why is having a good credit score important?

Your credit score can make or break your ability to apply for new lines of credit — including private student loans¹, auto loans, and mortgage loans. It will also prove pivotal if you’re considering refinancing² your existing debt. Refinancing at a lower rate can save you up to thousands of dollars in interest over the life of your loan — but you’ll only qualify for a low rate if you have a higher credit score³.

People who have very good or excellent credit scores often have an easier time not only getting approved for different types of loans, but also qualifying for lower interest rates. If you submit an application for a student loan or other credit while you have a low credit score, you may get approved — but only at relatively high interest rates. If you have a good score, on the other hand, you’re more likely to qualify for a lender’s best rates. Whether you’re taking out a new student loan or initiating a student loan refinance, those lower rates can save you tons of money over time.

American credit score ranges explained

Typically, American credit scores range from 300 to 850. Within this spectrum, scores are placed in a few different ranges or categories, which vary from “poor credit” to “excellent credit.” Different credit scoring models organize these credit ranges slightly differently. But in general, you will likely have a hard time getting approved for new lines of credit if your score falls below the “fair credit” threshold (580 for the FICO scoring model or 600 for the VantageScore model). Conversely, you’ll qualify for higher rates if your score is close to 800 on either model.

FICO credit score ranges

The FICO score, developed by the Fair Isaac Corporation, is a three-digit number based on FICO’s proprietary formula for analyzing your credit report. If you haven’t had a credit account for long, you likely won’t have a FICO score, which requires at least six months of payment history before it generates a credit report. As of 2023, the average American’s FICO score was 715.

FICO scores range from 300 to 850 as follows:

300-579: Poor

580-669: Fair

670-739: Good

740-799: Very Good

800-850: Exceptional

VantageScore ranges

Like the FICO score, your VantageScore credit score is a three-digit number ranging from 300 to 850. This scoring model was developed as a collaboration between the three credit reporting bureaus, Equifax, Experian, and Transunion. In order to have a VantageScore, you need to have at least one credit account that’s been open for at least a month.

VantageScore 3.0 and 4.0 models range from 300 to 850 as follows:

300-499: Very poor

500-600: Poor

600-661: Fair

661-780: Good

781-850: Excellent

Other credit score models

The FICO and VantageScore models are the two main types of credit scoring models that most lenders use. Sometimes, you might come across other tools or services that reference additional scores going by different names, but those scores are also usually based on the FICO or VantageScore.

Equifax also has its own scoring model for U.S. borrowers, which ranges from 280 to 850. However, the bureau states that this is an “educational credit score” and that prospective lenders won’t use it to assess your creditworthiness.

Both mainstream scores have different variations, so you might, for example, hear about the VantageScore, VantageScore 3.0, and VantageScore 4.0. Additionally, there are some industry-specific FICO scores for certain types of loans. These range from 250 to 900 and provide lenders with more specific information about a borrower’s likelihood of defaulting. Ultimately, however, these scores are all based on different analyses of the same information.

Average credit scores by age

As long as you don’t make any serious credit mistakes—like missing payments, racking up massive credit card balances you can’t pay, or defaulting—your credit score should slowly but continuously improve as you get older. That’s because your credit history ages with you, and the more experience you have with making payments on time, the less likely you are to present a serious credit risk to a lender.

Here are the average FICO scores by age and generation, according to recent reporting from Business Insider:

Specific data about VantageScores is harder to find, but here’s how each age group fares for excellent credit, according to Chase:

Under 30: 62% of borrowers have scores above 620 (fair); only 2% have scores above 800 (excellent)

30-39: 29% of borrowers have scores above 720

40-49: 39% of borrowers have scores above 720

50-59: 49% of borrowers have scores above 800

60+: 70% of borrowers have superprime scores

What affects my credit score?

Your VantageScore and FICO credit scores are influenced by roughly the same data, but each one weighs the various factors slightly differently. Below you’ll see how each factor affects the different credit score models.

The main things contributing to your score are:

• Your payment history. This includes whether you’ve made on-time or late payments. It makes up 35% of your FICO score and is an “extremely influential” piece of your VantageScore, according to Equifax.

• Your credit utilization ratio. This is how much of your available credit you’re using at any given time. It makes up 30% of your FICO score and is “highly influential” in your VantageScore.” The VantageScore formula also considers the specific amounts you owe on each credit account, and considers this variable “moderately influential.”

• Your length of credit history. Credit scoring models reward borrowers who have had open lines of credit for longer periods of time. The length of your credit history constitutes 15% of your FICO score and is “highly influential” on your VantageScore.

• The mix of credit types you have. Your credit mix describes the variety of credit you have. Credit cards, revolving credit accounts, and installment loans — like student loans and car loans — are all different credit types. This makes up 10% of your FICO score, and VantageScore calls credit mix “highly influential.”

• How much new credit you’ve applied for. Every time you apply for new credit, you trigger a hard inquiry into your credit report. (This is different from a soft inquiry, involved in most preliminary or prequalificiation checks. Soft inquiries don’t affect your score.) The frequency at which you submit new credit applications makes up 10% of your FICO score and makes a slight impact on your VantageScore.

How do I check my credit score?

You can check your credit score for free in a number of ways. Credit monitoring services like Equifax and Experian allow you to check your FICO score for free, and to upgrade to paid services to see additional data about your report. Many banks and credit card companies also provide similar free credit score-checking services.

It won’t hurt your credit score to check it. Your score can fluctuate each month as a result of normal changes in your spending habits—such as by using more or less of your total credit limit than usual. Equifax and Experian’s free score checking services allow you to sign up for monthly alerts about your score.

You can also get a full, free credit report from each reporting agency once per year from AnnualCreditReport.com.

How can I improve my credit score?

Improving your credit score can help you access private student loans at a lower cost. It can also help you qualify for affordable refinancing on federal or private student loans. If your score isn’t as high as you’d like it to be, here are a few ways you can move forward on the right track.

• Always make your payments on time: You should always make all of your payments on time, whether that’s for a student loan, rent payment, or credit card. If you’re a current student, you might not have any loan payments due for several more years. So, once your student loans enter repayment, make sure you understand when your first payment will come due so you can make every single payment on time. You can set up automatic payments to help you avoid missing any—and as a bonus, many student loan lenders, including Earnest* and all federal student loan servicers, offer a .25%⁴ interest rate discount for autopay.

• Apply for a new credit card**:** Having a mix of different types of credit can help you build history and trust with lenders. If you’re a student and don’t have a credit card, consider applying for a student credit card, which may come with student-specific perks or other rewards catered to your personal finance situation.

• Pay off a loan balance: Your debt-to-income ratio is a factor lenders consider when assessing you for a loan or credit account. If you have access to savings that can help you lower a loan balance significantly, this will lower your credit utilization rate and could significantly improve your score.

• Use a score-boosting service: Experian Boost allows you to link accounts like cell phone bills and streaming services to your credit file. You could get a few extra points almost instantly by doing so.

• Keep your credit utilization under 30%: To keep your credit utilization rate in check, make sure you’re paying off credit cards or other revolving lines of credit in full every month and that you don’t regularly use more than 30% of your total credit limit.

• Don’t close your oldest accounts, even if you’re not using them: When you close a credit account, this lowers your average age of credit. This is one of the reasons your score can dip slightly after you pay off your student loans. So, if you have an old, fee-free credit card you’re not using, keep it open even if you’re not using it. If you really do need to close the account, do what you can to manage the impact to your credit.

What if I don’t have a credit score?

If you’ve never applied for credit and don’t have records with any of the three main credit bureaus, that means you’re “credit invisible.” This doesn’t mean that you’ve done anything wrong—it just means you haven’t yet had a chance to prove your creditworthiness as a borrower.

Taking out student loans in your name can help you build credit once you start paying them off. On top of paying off student loans, you can apply for a secured credit card, get added as an authorized user on someone else’s credit account, or sign up for credit-boosting services to improve your credit score.

Find out how much you could save with Earnest

There are different types of consumer credit scoring models, but each one considers the same main criteria: your history of on-time payments, the length of your credit history, and how much debt you have at any given time. The higher you score in these categories, the higher your credit score generally is.

A good credit score can help you secure low interest rates on new student loans and on student loan refinances, while a bad credit score can hold you back. Fortunately, there are plenty of ways to boost a low credit score—and there are plenty of lenders with flexible eligibility requirements that can help you find affordable loan options. Earnest is one of those lenders. Find out today what kind of rates you could score on new student loans or a student loan refinance with Earnest. It only takes a couple of minutes—and it won’t hurt your credit score to check.

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This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

Information in this blog, including the rates advertised. are current as of xx/xx/xxxx and is subject to change. For current rates, please visit www.earnest.com.