Your credit score isn’t a grade. It’s a price tag on every loan you’ll ever take.
Borrow $10,000 for three years with a score in the high 700s and you might pay about $2,000 in interest. Borrow the same $10,000 with a score around 600 and it could cost about $5,300 (the example below shows the math). Same loan, same payoff date, roughly $3,300 apart, and the only thing that changed was a three-digit number.
This guide explains what a credit score is, the credit score ranges lenders use, what counts as a good credit score, and what yours is likely to cost you when you borrow. If you already know your number and want to raise it, our guide to improving your credit score picks up where this one ends.
What is a credit score?
A credit score is a three-digit number, usually from 300 to 850, that predicts how likely you are to pay back what you borrow on time. Lenders use it to decide whether to approve you and what rate to charge.
The score is calculated from the information in your credit reports at the three national credit bureaus: Equifax, Experian and TransUnion. Those reports list your credit cards and loans, your balances, whether you paid on time, and any collections or bankruptcies.
Two companies build most of the scores lenders use. FICO makes the FICO Score, and VantageScore Solutions, owned by the three bureaus, makes the VantageScore. Each has several versions, so you don’t have one credit score. You have dozens. They’re often close, but they can sit 20 or 30 points apart.
Your score doesn’t include your income, your job, your savings, your age, race, religion, national origin, sex or marital status. Lenders may look at income and savings separately, but the score itself is built only from your credit history.
Credit score ranges
Most FICO and VantageScore versions run from 300 to 850, but they label the ranges differently.
| FICO Score | Label |
|---|---|
| 800 to 850 | Exceptional |
| 740 to 799 | Very good |
| 670 to 739 | Good |
| 580 to 669 | Fair |
| 300 to 579 | Poor |
| VantageScore 3.0 and 4.0 | Label |
|---|---|
| 781 to 850 | Excellent |
| 661 to 780 | Good |
| 601 to 660 | Fair |
| 300 to 600 | Poor |
FICO labels as used by Experian; VantageScore labels as used by TransUnion (Experian calls the same tiers super prime, prime, near prime and subprime). Individual lenders set their own cutoffs and may group scores differently.
The average FICO Score in the U.S. was 713 at the end of 2025, according to Experian, two points lower than a year earlier. That puts the typical American in the “good” range, about 30 points short of “very good.”
Find your own range in the table before you apply for anything. It tells you which offers are realistic and which ones are a waste of an application.
What is a good credit score?
A good credit score is 670 or higher on the FICO scale, or 661 or higher on VantageScore. At that level, most lenders see you as a reliable borrower and approve you for mainstream loans and cards.
Good isn’t the same as best. For many loans, the lowest advertised rates go to borrowers at 740 or above, which is where FICO’s “very good” range starts. Above about 760 to 780, extra points rarely change your rate, because you’re already in the lender’s top pricing tier.
So don’t chase 850. The real money is in crossing the lines lenders price by: from below 580 to fair, from fair to good, and from good to very good. Each of those jumps can change the rate you’re offered. The jump from 790 to 820 mostly changes bragging rights.
If you’re within 20 or 30 points of the next tier and don’t need the money this month, it can pay to wait and raise your score before you apply.
What your credit score costs you on a $10,000 loan
A lower credit score costs you money through a higher interest rate. The same $10,000 personal loan, repaid over 36 months, could cost this much at four score levels:
| Credit score | Example APR | Monthly payment | Total interest |
|---|---|---|---|
| 760 and up | 12% | $332.14 | $1,957 |
| About 700 | 16% | $351.57 | $2,657 |
| About 650 | 22% | $381.90 | $3,749 |
| About 600 | 30% | $424.52 | $5,283 |
The borrower at 600 pays about $92 more every month and about $3,300 more in total than the borrower at 760. The borrower at 650 pays about $1,800 more. Those gaps grow with bigger loans and longer terms: on a mortgage, a small rate difference is repeated over 30 years.
Your score isn’t the only thing a lender weighs. Income, existing debt, the loan amount and the term all matter too, which is why two people with the same score can get different offers.
Illustrative example. APRs are examples chosen to show how rates typically rise as scores fall; they are not quotes, offers or current market averages. Your actual rate depends on your credit profile, income, debts, the loan amount and term, and the lender.
See what your score can get you
Send one short request. Lenders in our network that can offer you a personal loan contact you directly with their terms.
Check your optionsWhat credit score do you need for a loan?
There’s no single minimum. Each lender sets its own, and some loan programs set a floor. These numbers come up most often:
| Loan | What to expect |
|---|---|
| Personal loan | No official minimum. Many lenders look for scores in the 600s or higher to qualify, while others lend to lower scores at higher rates. See bad credit loans if you’re below 600. |
| FHA mortgage | 580 or higher qualifies for the 3.5% minimum down payment; 500 to 579 needs at least 10% down. Lenders can require more. |
| Conventional mortgage | Fannie Mae dropped its hard 620 minimum for loans run through its automated underwriting system in November 2025, but many lenders still ask for about 620 or more. |
| Auto loan | No official minimum. Lower scores usually mean a higher rate or a bigger down payment. |
| Federal student loan | No credit score needed for student loans; PLUS loans for parents and graduate students check for adverse credit history instead. See student loans. |
If your score sits just under a lender’s cutoff, ask what the cutoff is before applying. A lender’s answer tells you whether to apply now or spend a few months raising your score first.
How your credit score is calculated
FICO Scores are built from five categories of information in your credit report, each weighted differently for most people.
| Factor | Share of a FICO Score | What it measures |
|---|---|---|
| Payment history | 35% | Whether you’ve paid on time, and how late, how recent and how often any late payments were |
| Amounts owed | 30% | Your balances, especially how much of your credit card limits you’re using (credit utilization) |
| Length of credit history | 15% | The age of your oldest account, newest account and the average of all of them |
| New credit | 10% | Recent applications and newly opened accounts |
| Credit mix | 10% | Whether you handle different types of credit, such as cards and installment loans |
Weights are FICO’s general guide for the population as a whole. The importance of each factor varies from person to person.
VantageScore uses similar information but groups it differently and doesn’t publish fixed percentages. In both systems, the same two things do most of the work: paying on time and keeping card balances low relative to your limits.
Medical debt counts less than it used to. Since 2022 and 2023, the three bureaus have kept paid medical collections, unpaid medical collections less than a year old, and medical collections under $500 off credit reports. A federal rule that would have removed medical debt entirely was struck down by a court in July 2025, so larger unpaid medical collections can still appear. Some states restrict them, though those state laws face legal challenges.
Look at your two biggest factors first. If you have any late payments, get current. If your cards are carrying high balances, paying them down is usually the fastest way to move your score.
FICO vs. VantageScore
FICO says its scores are used by 90% of top U.S. lenders, while VantageScore is common in free credit monitoring apps. Both use the same credit reports and the same 300 to 850 range for their main versions, so they usually tell a similar story.
In practice, three differences matter:
- Thin credit files. VantageScore can score people with a short or light credit history that FICO can’t score yet. FICO generally needs at least one account open for six months and one account reported in the past six months.
- Versions. Lenders don’t all use the newest version. FICO Score 8 is widely used for cards and personal loans, auto lenders often use FICO Auto Scores, and mortgage lenders have long used older FICO versions.
- Mortgages are changing. Fannie Mae and Freddie Mac now accept VantageScore 4.0 alongside classic FICO; FICO Score 10T is approved but not yet in use. FHA lenders can start using both newer models in January 2027.
That’s why the score in your banking app can be 20 or 30 points away from the score a lender pulls. Neither is wrong. Treat your app’s score as a trend line and expect the lender’s number to be close, not identical.
Why your credit scores are different
Your scores differ because each one is calculated from a different report, with a different model, on a different day.
- Different bureaus. Not every lender reports to all three bureaus, so an account or a late payment can appear on one report and not another.
- Different models. FICO 8, FICO 9, FICO 10, VantageScore 3.0 and 4.0 each weigh the same data a little differently.
- Different ranges. FICO’s industry-specific auto and bankcard scores run from 250 to 900, not 300 to 850.
- Different timing. Card issuers usually report once a month, often on your statement date, so a score pulled before and after a report can differ.
When a lender tells you its score for you, ask which bureau and which model it used. That’s the number to track for that kind of loan.
How to check your credit score for free
You can check your credit score for free, and checking your own score never lowers it. It counts as a soft inquiry, which lenders don’t see.
- Look in your card or bank app. Many credit card issuers and banks show a free FICO Score or VantageScore, updated monthly.
- Pull your credit reports. You can get free reports from all three bureaus every week at AnnualCreditReport.com, the only site authorized by federal law for this. Reports show the details behind your score, though they don’t always include the score itself.
- Use a bureau’s free account. The bureaus offer free accounts with a score and report from that bureau. Skip any paid add-on you didn’t go looking for.
Watch out for “free credit score” offers that ask for a card number. Some turn into paid monthly subscriptions after a trial. You never need to pay to see your reports.
Pick one free source and check it once a month, same day each month. Watching one number over time tells you more than comparing five apps.
How applying for a loan affects your credit score
Applying for credit usually triggers a hard inquiry, which for most people lowers a FICO Score by less than five points, according to FICO. Hard inquiries stay on your report for two years, but FICO Scores only count them for one.
Rate shopping is protected for some loans. FICO counts multiple mortgage, auto or student loan inquiries within a short window, 14 to 45 days depending on the score version, as a single inquiry. Credit card applications don’t get that treatment.
Many lenders let you prequalify first with a soft credit check, which shows you likely rates without affecting your score. The request form on Loans.net also uses a soft check. You’d only see a hard inquiry once you choose a lender’s offer and formally apply.
Shop in a tight window. Collect your offers within two weeks, compare total cost, then formally apply for just the one you want.
What hurts your credit score the most
Missed payments hurt your credit score more than anything else, because payment history is the biggest part of your score. A single payment 30 or more days late can drop a strong score by dozens of points.
The biggest score killers, and how long they stay on your credit report:
| Item | How long it stays on your report |
|---|---|
| Late payments (30 days or more) | 7 years |
| Collections and charge-offs | 7 years from the original delinquency |
| Chapter 13 bankruptcy | Usually 7 years |
| Chapter 7 bankruptcy | Up to 10 years |
| Hard inquiries | 2 years (counted by FICO for 1 year) |
High credit card balances also pull your score down, but unlike late payments, they stop hurting as soon as a lower balance is reported. That makes utilization the fastest lever you have.
Their impact also fades. A late payment from five years ago weighs far less than one from last month, so one old mistake doesn’t define your score forever.
Set up autopay for at least the minimum on every account today. It’s the simplest way to make sure the biggest factor in your score never works against you.
What to do if your credit report has errors
If something on your credit report is wrong, you have the right under the Fair Credit Reporting Act to dispute it for free. The bureau generally has 30 days to investigate and must remove or correct information it can’t verify.
- Pull all three reports and mark every item you don’t recognize or that’s wrong.
- File a dispute online with each bureau showing the error, and include copies of any proof.
- Also contact the lender or collector that reported it.
- Keep records of what you sent and when.
If an error isn’t fixed, you can submit a complaint to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.
Ready to raise your score?
Knowing your number is step one. Our guide to improving your credit score walks through the steps that move it fastest, from lowering your utilization to handling collections, and how long each one takes to show up.
Know your score? Put it to work.
One short request, a soft credit check, and lenders in our network that can offer you a personal loan contact you directly.
See your loan optionsFrequently asked questions
What is a good credit score?
A good FICO Score is 670 to 739, and 740 or higher is very good. On VantageScore, 661 to 780 is good. Many lenders reserve their lowest rates for scores of about 740 and up.
What is the average credit score?
The average FICO Score in the U.S. was 713 at the end of 2025, according to Experian. That falls in the good range.
Does anyone have a 900 credit score?
Not on the scores most people see. The main FICO and VantageScore versions top out at 850. FICO’s industry-specific auto and bankcard scores run from 250 to 900, so a 900 is only possible on those.
Is 450 a bad credit score?
Yes. A 450 is in the poor range on both FICO and VantageScore. Most mainstream lenders won’t approve it, but secured cards and credit-builder loans can help you rebuild, and scores can recover once late payments stop.
Can I get a $50,000 loan with a 700 credit score?
Possibly. A 700 score is good, but for a loan that size lenders also look closely at your income and existing debt. Maximum loan sizes vary by lender, and your income has to support the monthly payment.
Does checking my own credit score lower it?
No. Checking your own score or report is a soft inquiry and has no effect on your score. Only hard inquiries, from applying for credit, can lower it.
How often does my credit score update?
Your score can change whenever new information reaches your credit report, which for most accounts happens about once a month. A new score is calculated each time a lender or app pulls it.
What credit score do I need for a personal loan?
There’s no single minimum. Many lenders look for scores in the 600s or higher to qualify, and some work with lower scores at higher rates. Your income and existing debt matter too.
About Loans.net: Loans.net is a loan marketplace, not a lender. When you send a request, it goes to lenders in our network, whose systems review it automatically; a lender that can offer you a loan contacts you directly with its own terms. We don’t make credit decisions, set rates or fees, or fund loans, and we don’t make sales calls. Submitting a request runs a soft credit check, which doesn’t affect your credit score. We may be compensated by lenders and partners in our network. This page is general education, not financial or legal advice.
Sources
- Experian, “What Is the Average Credit Score in the U.S.?” and FICO Score range labels (experian.com, accessed September 2026)
- myFICO, “What’s in my FICO Scores” and “Does Checking Your Credit Score Lower It?” (myfico.com, accessed September 2026)
- VantageScore Solutions (vantagescore.com)
- Consumer Financial Protection Bureau, credit reports and scores resources and complaint portal (consumerfinance.gov)
- Federal Trade Commission, free credit reports (consumer.ftc.gov) and AnnualCreditReport.com
- National Consumer Law Center, “The Latest on Keeping Medical Debt Out of Credit Reports” (2025)
- Fannie Mae, Selling Guide update removing the minimum credit score for Desktop Underwriter loans (November 2025)
- U.S. Department of Housing and Urban Development, FHA credit score requirements (Mortgagee Letter 2010-29, hud.gov)
- FHFA, “Homebuying Advances into New Era of Credit Score Competition” (April 2026) and credit score updates (September 2026)
- TransUnion, VantageScore range labels (transunion.com)
- Fair Credit Reporting Act, 15 U.S.C. § 1681
Related guides
- Improve your credit: steps that raise your score fastest
- Personal loans: how they work and what they cost
- Bad credit loans: what’s realistic with a lower score
- Debt consolidation: one payment instead of several
- Secured vs. unsecured loans: when collateral gets you a better rate
- Loan calculator: estimate your payment and total interest
Last updated: September 2026. Score ranges, averages, inquiry rules, medical debt reporting and mortgage score requirements were checked against the cited sources in September 2026. Worked examples and rates are illustrative.