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A credit score is a three‑digit number, usually between 300 and 850, that helps predict how likely you are to repay a loan on time. Lenders use it to help decide whether to approve you and what terms to offer - things like interest rates, fees, and credit limits.
Broadly, higher scores make borrowing easier and cheaper. Lower scores can make approval harder and borrowing more expensive.
What is a Good Credit Score?
Different scoring models use slightly different ranges, but most consumer scores in the U.S. use a 300-850 scale.
According to FICO, the most widely used scoring model, score ranges are typically grouped as:
- 300–579: Poor
- 580–669: Fair
- 670–739: Good
- 740–799: Very good
- 800–850: Exceptional
According to VantageScore, common ranges are:
- 300–600: Subprime
- 601–660: Near prime
- 661–780: Prime
- 781–850: Superprime
In many situations, scores starting around 670 (FICO) or in the prime range (VantageScore) are considered “good” because they suggest you have handled credit reasonably well over time. Lenders may still look at other information - such as your income, debts, and full credit report - but good scores generally unlock better terms than fair or poor scores.
It is also true that in some markets or for some rental and utility decisions, scores in the low‑600s may be accepted. But a higher score usually means more flexibility and more favorable offers.
What makes a lower score?
Lower scores often fall into the fair or poor ranges and can happen for two main reasons:
- Limited history
You have not used much credit yet, so there is not enough information to show a long track record. - Negative events
Your report includes things like late payments, high utilization, accounts in collections, charge‑offs, or bankruptcy.
Fair scores are not “bad,” but they may not qualify you for the best terms. Scores in the poor range can make approval difficult or lead to much higher interest rates.
If you have never had a credit account but see a low score when you apply, it may be a sign of fraud or identity theft. Someone could have used your information to open accounts in your name. If you suspect identity theft, report it through IdentityTheft.gov and dispute any fraudulent accounts with the credit bureaus.
How to maintain a good score
If you already have a good score, the habits that got you there are usually the habits that keep it there.
Key principles:
- Pay on time. Payment history is one of the most important parts of most scoring models. Aim to pay all bills — credit cards, loans, utilities, rent — on time, every month.
- Use rent reporting when available. Positive rent reporting can help make your on-time rent payments more visible in your credit profile, which can support your score over time without requiring you to take on new debt.
- Keep credit utilization low. Try not to use too much of your available revolving credit (credit cards and lines of credit). Many experts suggest staying below 30% of your total credit limits, and lower is generally better.
- Be careful with new credit. Opening too many accounts in a short period can hurt your score and make lenders cautious.
Protect older accounts when it makes sense. Long-standing accounts can help your average age of credit history. If an older card has no annual fee and no other issues, there can be value in keeping it open.
A Note on co‑signing
Becoming a co‑signer on someone else’s loan or credit card can affect your score too. When you co‑sign, you are agreeing to be fully responsible for the debt if the other person does not pay.
If you co‑sign and the other person misses payments, that negative history can appear on your report and hurt your score. It can also increase your overall debt‑to‑income profile in lenders’ eyes. If you decide to co‑sign, make sure you are comfortable with the risk.
Monitor your credit regularly
Monitoring your credit is one of the best ways to spot problems early and stay on track.
- You can request free credit reports at AnnualCreditReport.com, the official site for accessing credit reports from Equifax, Experian, and TransUnion. In addition, residents using the Esusu app can download a fresh credit report each month at no extra cost as part of their credit-tracking tools.
- Many banks and credit card issuers also provide free access to credit scores or credit monitoring tools.
Checking your own reports or scores is a soft inquiry and does not hurt your score.
For renters, Esusu’s Credit Hub offers education and tools designed to help you understand how credit works, track progress, and build healthier credit habits over time.