When Is Your Credit Score High Enough? - NerdWallet (2024)

MORE LIKE THISThe Ultimate Credit Score GuideMaking MoneyPaying Your BillsPersonal Finance

Easy access to free credit scores has helped many Americans improve their credit. But at a certain point, chasing every possible point gets you nothing except bragging rights.

How do you know when your credit score is high enough for you to relax?

Checking your credit score is a bit like checking your weight. You don’t need to obsess over every fraction of a pound, and an occasional indulgence (or high credit card balance) won’t do lasting damage if your habits are generally healthy.

Get score change notifications

See your free score anytime, get notified when it changes, and build it with personalized insights.

Get started

When Is Your Credit Score High Enough? - NerdWallet (1)

What’s your goal?

Most credit scores are on a scale of 300 to 850. Nationally, the average credit score is 717 for FICO 8, as of October 2023, and 700 for its competitor, VantageScore 3.0, as of October 2023. So that’s one way of comparing your number.

But being about average doesn’t necessarily put you in the best position to qualify for the credit product you want at decent interest rates. A score of 720 or better puts you in the "excellent" credit score range.

Atlanta-based credit expert John Ulzheimer, who has worked for FICO and credit bureau Equifax, says a healthy range depends on what your goals are. If you want to buy a car, you probably need a score of at least 720 to get the lowest interest rates, he says.

If you want to qualify for a mortgage with the best terms or a top-tier rewards card, Ulzheimer suggests you aim for at least a 760 — and higher is safer.

Morris Armstrong of Connecticut, founder of Armstrong Financial Strategies, likes having a score cushion. “I think that if your numbers are above 780 that you are fine and should not worry. That is still an excellent number, but if you are competitive — and I understand that it is now trendy — then you will want to achieve a higher bragging-right number.”

A “perfect” score — an 850 on the most commonly used scale — requires a credit history spanning many years and having few or no credit missteps. And, as far as lenders are concerned, someone with a 780 or so is every bit as likely to repay borrowed money as someone with an 850.

Ultimately, your score is a tool to get approved for credit products that help you achieve your goals. Reaching those goals is more important than obsessing about a couple of points on your score.

Check your credit health

If you’re not sure where your credit score stands, there are plenty of ways to check it. NerdWallet offers a free credit score, as do many other personal finance websites and some credit card issuers.

If you have years of on-time payments and use your credit cards fairly lightly, you probably have a decent score. If you are younger, it may take a little time to build a great score, and learning about how credit works is a good way to do that.

If there’s a certain product you want, say a mortgage or a travel rewards card, you can often get a general idea of the minimum score needed for approval. It’s best to be comfortably above that because your scores fluctuate a bit depending on your recent financial activity.

Track your credit score with the NerdWallet app

Track your budget, finances and credit - all in one place and all for free.

When Is Your Credit Score High Enough? - NerdWallet (2)

Habits that help

Healthy credit habits, practiced consistently, build high scores. For best results:

  • Pay on time, every time. Payment history is the largest of the factors that affect your credit score, so pay attention to it.

  • Use only a small portion of your credit limit. The next biggest influence on scores is “credit utilization,” your balance relative to your credit limit on each card.

  • Keep cards open unless you have a compelling reason — such as fees you think are not worth it or poor customer service — to close them. You want to show a long history of using credit responsibly.

  • Space credit applications at least six months apart, making sure to research the best credit cards for your needs before applying.

  • Check your credit score at least monthly to see how your spending and payment behaviors affect your score.

And if you make a mistake? Expect to see it reflected in your score. But you can speed recovery by getting back in the routine of the healthy habits above.

Some mistakes fade more quickly than others. A late payment can damage your score for some years. High credit utilization, on the other hand, stops hurting your score once your lender reports you’ve paid down the high balance.

You can try to squeeze out every possible point, but if your score is comfortably high, it’s unlikely to boost your borrowing power. Once you’re well into the worry-free zone, you can cruise if you want to.

When Is Your Credit Score High Enough? - NerdWallet (2024)

FAQs

When Is Your Credit Score High Enough? - NerdWallet? ›

Generally speaking, a good credit score is 690 to 719 in the commonly used 300-850 credit score range. Scores 720 and above are considered excellent, while scores 630 to 689 are considered fair.

What credit score is high enough? ›

Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.

At what score does your credit become good? ›

For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750.

How rare is a 780 credit score? ›

A 780 FICO® Score is above the average credit score. Borrowers with scores in the Very Good range typically qualify for lenders' better interest rates and product offers. 25% of all consumers have FICO® Scores in the Very Good range.

Can I buy a house with a 780 credit score? ›

Conventional lenders now require a 780 credit score or higher to qualify for the lowest mortgage interest rates, so anything above 780 is considered an excellent score to buy a house.

What is the average US credit score? ›

What is the average credit score? The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.

Is 2 years of credit history good? ›

Anything less than two years is considered a short credit history. Once you have established between two and four years of credit, lenders will better understand how well you manage your credit accounts. A credit age of five years will raise your score as long as you've been managing your accounts well.

Is a 900 credit score possible? ›

Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.

Who has a 999 credit score? ›

A credit score of 999 from Experian is the highest you can get. It usually means you don't have many marks on your credit file and are very likely to be accepted for a loan or credit card.

What is the poorest credit score? ›

Well, there are several credit score ranges. For instance, 780–850 may be considered "excellent" while 720–780 may be seen as "good." But when it comes to a range that may be seen as bad, a score between 300 (the lowest) and 660 fits into the “poor” category.

How much can I borrow with a 780 credit score? ›

You can borrow over $100,000 with a 780 credit score if you get a mortgage or a home equity loan. Keep in mind, the exact amount of money you will get depends on other factors in addition to your credit score, such as your income, your employment status and even the lender.

Can you buy a house with a 720 credit score? ›

Home loans

Assuming you have enough income, a 720 credit score is likely high enough to help you get a government-backed mortgage such as an FHA for VA loan. However, it's probably not high enough to get the lowest interest rates available.

What is a good credit score to buy a house? ›

You'll typically need a credit score of 620 to finance a home purchase. However, some lenders may offer mortgage loans to borrowers with scores as low as 500. Whether you qualify for a specific loan type also depends on personal factors like your debt-to-income ratio (DTI), loan-to-value ratio (LTV) and income.

Can I buy a car with a 720 credit score? ›

Absolutely. Your 720 credit score will qualify you for an auto loan, assuming your income justifies it. However, it's important to realize that your credit score can make a big difference in the interest rate you get. And this is especially true in auto lending.

How much can I borrow with a 700 credit score? ›

You can borrow from $1,000 to $100,000 or more with a 700 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.

How many people have an 850 credit score? ›

In the U.S., only about 1.7 percent of the scorable population had a perfect 850 FICO credit score in April 2023, according to FICO data. This suggests that for most people, a perfect score is simply too hard to reach — but it also suggests that it's not really necessary, either.

References

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Catherine Tremblay

Last Updated:

Views: 6245

Rating: 4.7 / 5 (67 voted)

Reviews: 90% of readers found this page helpful

Author information

Name: Catherine Tremblay

Birthday: 1999-09-23

Address: Suite 461 73643 Sherril Loaf, Dickinsonland, AZ 47941-2379

Phone: +2678139151039

Job: International Administration Supervisor

Hobby: Dowsing, Snowboarding, Rowing, Beekeeping, Calligraphy, Shooting, Air sports

Introduction: My name is Catherine Tremblay, I am a precious, perfect, tasty, enthusiastic, inexpensive, vast, kind person who loves writing and wants to share my knowledge and understanding with you.