What is a good credit score? Here’s what experts say

Getting a good credit score - or raising a bad one - is on the minds of millions of Americans this year.

Around 40 percent of Americans have made improving their credit score a 2026 resolution, according to a survey from Wells Fargo. Having a good credit score opens the door for lower interest rates on auto, home, and personal loans and credit cards, potentially saving you thousands of dollars in interest payments over your lifetime.

But what exactly is a good credit score? The definition has changed over time, said Matt Schwartz, a mortgage broker and co-founder of home loan lender VA Loan Network.

“The concept of a good credit score has, over time, risen with the amount of debt that people carry, as well as their reliance on risk models to make lending decisions,” Schwartz told The Independent by email. “These days, a good credit score is not just a sign that a borrower is able to make payments on time. It is a sign that a borrower is able to exercise restraint.”

These days, a good credit score is 670 to 739, according to FICO. The credit scoring firm and others create a credit score based on an individual’s credit history - and the higher the score, the less risky a borrower, and vice versa.

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Consumers tend to have multiple credit scores because there are multiple scoring models, but their FICO score is used most often by lenders, according to MyCreditUnion.gov. In fact, 90 percent of top lenders use it when making a lending decision, according to FICO.

However, the range of scores included in the “good” range can change depending on the credit score you’re looking at. VantageScore, which the three credit bureaus (Equifax, Experian and TransUnion) use, considers good a score of 611 to 715.

“Technically, a good credit score is…in the mid-to-high 600s, although this varies depending on the scoring model used,” Schwartz said. “For most lenders, a good credit score is one that is at least 700.”

While there is a technical side to defining a good credit score - FICO’s range, for example - there’s a practical side to it, too. A “good” score for one borrower might be different than another borrower.

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“Relatively speaking, good means approvals become easier, borrowing becomes less expensive, and conditions are less stringent,” said Colin Sahagun, CEO at fintech startup Stelrix.

In that sense, a good credit score is the one that helps you achieve your financial goals. If you want a car loan at a lower rate than your current auto loan, boosting your 600 score to a 650 may be good enough.

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However, if you’re applying for a premium credit card with big perks and stringent credit requirements, your goal may be to hit an 800 to improve your chances.

Credit scores impact whether a lender approves a credit card or loan, and, just as important, the terms you get. In general, the better the credit score, the better the terms.

“The benefits [of good credit] are substantial: lower borrowing costs, which can materially affect long-term wealth building; higher approval odds for essentials like housing, auto financing and major purchases where credit is often a gatekeeper; and better product access with higher limits, better rewards, fewer deposits and fewer restrictions,” Sahagun told The Independent by email.

This is how your credit score can impact your interest rate and total payment on a $10,000 personal loan repaid over five years, based on a loan calculator from U.S. Bank:

Even within the range of a good credit score - 670-739 - there are tiers that impact borrowing terms. For example, credit scores of 670 and 739 are considered in the “good” range, according to FICO, but the two scores create big differences when applied to a $10,000 personal loan.

The lower score gets an interest rate that’s 5.5 percent higher - meaning $30 more for every monthly repayment. Over the life of the loan, it totals nearly $1,800 more in interest.

The benefits of a good credit score go beyond the dollars and cents of loan terms, too, Sahagun said.

“Strong credit means less friction and less stress because it reduces the number of extra steps and conditions people face,” he said. “You also gain better negotiating power because lenders compete more for low-risk borrowers.”