What Is a Good Credit Score in 2026?

July 2026

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The question "what is a good credit score" has a technically correct answer and a practically useful one, and they are not the same number. FICO — the scoring model used by roughly 90% of top lenders — defines the "good" range as 670 to 739. That definition is accurate. But it is also incomplete, because the threshold where lenders actually switch you into their best rate tier is not 670. It is 740.

A 670 score is above average. The average FICO score in the United States was 717 as of mid-2026. A 670 qualifies for most credit products and will not result in an outright denial from most lenders. What it will produce is interest rates that are meaningfully higher than those available to borrowers in the 740-plus range — a difference that compounds into real money over the life of a mortgage, auto loan, or credit card balance.

Understanding the score ranges, what each range actually unlocks, and where the real premium threshold sits is the foundation for setting a useful credit building target. The complete system for building toward that target is in the Credit Score Building Strategies cluster.

The FICO Score Ranges: What Each Tier Means

FICO scores range from 300 to 850. The scale is divided into five tiers, each associated with a different level of lender risk assessment and a different set of practical outcomes.

Population percentages approximate, based on Experian and FICO data as of mid-2026. Average FICO score 717 per Experian 2025 State of Credit report.

The Real Target: Why 740 Matters More Than 670

FICO's tier boundary at 670 marks the entry point for "good" credit. But most lenders have their own internal scoring tiers that determine rate pricing, and those internal thresholds do not align perfectly with FICO's published categories. In practice, the rate breakpoint that most lenders use for their best available pricing sits at approximately 740 — not 670.

This gap has real dollar consequences. On a $400,000 30-year mortgage, the difference between the rate available at 680 versus 740 is typically 0.5 to 1.0 percentage points. At a 0.75 percentage point difference, that single number change saves approximately $190 per month — or roughly $68,000 over the life of the loan. The dollar math for auto loans is smaller but still significant: a 3 percentage point rate spread on a $35,000 vehicle financed over 60 months produces approximately $2,700 in additional interest.

The practical implication for anyone building credit: 670 is a meaningful milestone that unlocks access to most credit products. But 740 is the target that unlocks the best pricing on those products. A building strategy that stops at "good enough to get approved" leaves money on the table every year on every product that carries an interest rate.

What Each Score Range Actually Unlocks

Score ranges produce different outcomes depending on the product. The same score that qualifies for one product at excellent terms may produce only average terms on another. Here is what each major tier unlocks in practice across the products that matter most.

FICO vs VantageScore: Why the Same Score Can Mean Different Things

FICO and VantageScore are the two major credit scoring systems. Both use a 300–850 scale, but their tier labels and boundary lines differ in ways that matter for understanding where you actually stand.

The practical consequence: a 750 FICO score is "very good." A 750 VantageScore is also "good" under VantageScore's wider good tier (661–780). The same number means something different depending on the model. More importantly, the same person can have scores that differ by 20–40 points between FICO and VantageScore because the models weight credit factors differently.

In 2026, mortgage lenders are now permitted to use VantageScore 4.0 alongside FICO models for federally backed mortgages. VantageScore 4.0 incorporates trended data (how balances have changed over 24 months), rent payments, utility payments, and telecom payments in some cases. A person with a thin traditional credit file but a strong history of on-time rent and utility payments may score higher under VantageScore 4.0 than under FICO 8. The model the specific lender uses for the specific application is what determines which score matters for that decision.

How to Move From Your Current Score Toward 740

The path from wherever you are now to 740 depends on which factors are currently limiting the score. The highest-leverage actions differ by starting point.

Starting below 580: The priority is eliminating active negative items — collections in the collection process, accounts with recent missed payments, any charge-offs. Positive payment history accumulation matters but is offset by active negatives. The fastest path up from this range involves both stopping the bleeding and building new positive history simultaneously through a secured card or credit-builder loan.

Starting at 580–670: The dominant factor is almost always utilization combined with limited positive payment history. Bringing card balances below 30% (and ideally below 10%) before statement close produces the fastest measurable improvement. Building out the positive payment history record month over month moves the score steadily upward.

Starting at 670–720: The gap between here and 740 is typically a combination of utilization management and account age. Making a pre-statement payment on the highest-utilization cards to lower the balance before it is reported is the highest-leverage single action. The guide to increasing your credit score quickly covers the specific tactical sequence for this range.

Starting at 720+: The remaining gap to 740 is usually account age and a small utilization issue. Time and consistent behavior are the primary drivers at this range. Forcing it with aggressive tactics rarely accelerates it meaningfully — the account age factor requires time, not action.

Frequently Asked Questions

What credit score do I need to buy a house in 2026?
The minimum for a conventional mortgage is typically 620. FHA loans are available at 580 with 3.5% down or 500 with 10% down. But the minimum to qualify and the score that gets the best rate are different numbers. For the best available conventional mortgage rates, lenders typically price at their lowest tier for scores of 740 and above. Moving from 680 to 740 before applying for a mortgage is one of the highest-ROI financial moves available, given the dollar impact over a 30-year loan.

Is 700 a good credit score?
Yes — 700 is in the FICO "good" range (670–739) and above the national average of 717. A 700 score qualifies for most credit products and produces competitive but not optimal rates. The 40-point improvement from 700 to 740 moves the score into the "very good" tier where most lenders offer their best available pricing. For context, 45.5% of Americans now have scores of 740 or above, meaning 700 is good but not in the premium tier.

How long does it take to go from 580 to 700?
With consistent positive behavior — on-time payments, utilization below 30%, no new negative items — a 120-point improvement from 580 to 700 typically takes 12 to 24 months. The timeline depends heavily on whether there are existing negative items on the report. A file with no derogatory items and thin positive history can move faster than a file with recent late payments or collections that are still actively damaging the score. The fastest path involves both adding new positive accounts and managing utilization aggressively while waiting for any negative items to age.

Does a higher score above 800 save me more money?
Generally no — not in a meaningful way. Most lenders have rate tiers that top out at 740 or 760. Moving from 780 to 820 typically produces no rate improvement on mortgages, auto loans, or credit cards. The primary value of scores above 800 is resilience: a higher baseline means the score can absorb a temporary negative event — a utilization spike, a hard inquiry — without dropping out of the premium tier. The practical target for most people is 740, not 800.

What credit score do landlords typically require?
Most landlords and property management companies look for a minimum of 620–650 for standard approval. Scores below 580 frequently result in either denial or a requirement for a larger security deposit or a co-signer. In competitive rental markets with low vacancy rates, some landlords set higher internal minimums of 680–700. Scores above 670 clear most rental requirements without additional conditions. The specific credit score requirements for rental applications and other products are covered in the credit score requirements guide.