A good credit score generally starts at 670 or higher on the FICO scale. Hitting this range signals to lenders that you’re a reliable borrower, which can boost your chances of getting approved for loans, securing housing and qualifying for a better interest rate.
So, what exactly goes into a good credit score? Let’s break it down.
What are the credit score ranges?
Credit scores range from 300-850, with 300 being considered poor and 850 the highest score you can achieve. Both FICO and VantageScore, the two most commonly used scoring systems, use this same range.
What is a good FICO score?
A FICO score of 670 or above is considered good. Across age groups, the average FICO score in 2025 was 715.
FICO credit score range | Rating | What it means |
|---|---|---|
800-850 | Excellent | Best approval odds and lowest interest rates |
740-799 | Very good/Good | Strong approval chances and good rates |
670-739 | Good/Fair | You’ll qualify for most credit |
580-669 | Fair/Poor | Interest rates may be higher and approvals harder |
What is a good VantageScore?
A VantageScore above 660 is good, or prime. In 2025, the average VantageScore in the U.S. was 701.
VantageScore range | Rating | What it means |
|---|---|---|
781-850 | Super prime | Best approval odds and lowest interest rates |
661-780 | Prime | Strong approval chances and good rates |
601-660 | Near prime | You’ll qualify for most credit |
300-600 | Subprime | Interest rates may be higher and approvals harder |
Why is a credit score important?
Your credit score demonstrates how likely you are to pay your future debts. This helps lenders determine the risk of lending to you, which can affect the interest rate you’ll pay on a loan or your chances of getting approved. But credit scores are rarely the only factor considered. Lenders may also take into account your debt-to-income ratio, collateral, work history and background checks.
Read more: How Ally Bank’s saving and spending buckets can help you pay off debt
What affects your credit score?
Five factors go into calculating your FICO credit score:
Payment history (35%): A history of on-time payments is key to a good credit score.
Amount you owe: Keep your credit utilization (how much of your available credit you are using) low for a higher score.
Length of your credit history (15%): Typically, the longer you’ve had open credit accounts, the better.
Credit mix (10%): A mix of different credit types, such as credit cards, loans and mortgages, can help boost your score.
New credit (10%): Opening too many credit accounts within a short timeframe can negatively affect your score.
VantageScore uses a similar model, though the factors may be weighted differently.
How to improve your credit score
Your credit score may go up or down over the course of your life. If you want to improve your score:
Pay bills on time and in full ( automation can help!)
Keep your credit utilization low, typically under 30% of your available credit
Limit new credit applications, or spread out the time between opening new accounts
Maintain older credit accounts
Stay on top of your score — you can check your score for free in the Ally Bank app
Focus on your financial health
Whatever your financial goals may be, building your credit is an important part of your overall financial health. Even if a mortgage, car loan, business loan or personal loan is not part of your plan today, building your credit will help you get access to the financing you need when you need it.
