What Is a Good Credit Score? Here's Your 2026 Guide
What Is a Good Credit Score? Here's Your 2026 Guide
A good credit score ranges from 670 to 739 according to FICO. This range can unlock better interest rates, saving you money on loans and credit cards. The average American's credit score is 714, according to Experian, which places many in the 'good' category.
Why This Matters
Your credit score could save or cost you thousands of dollars. For example, someone with a score of 670 might pay $1,000 more in interest over a 30-year mortgage than someone with a score of 740. On credit cards, higher scores often mean lower interest rates, which translates to hundreds of dollars in savings annually.
Understanding Your Credit Score
What Is a Good Credit Score?
A good credit score typically falls between 670 and 739. Scores above 740 are considered very good, while 800 and above are excellent. These ranges are guidelines used to assess your creditworthiness and determine the interest rates you qualify for.
Why Scores Matter
Credit scores impact everything from loan approvals to apartment rentals. A higher score often means better terms and easier access to credit. According to the Federal Reserve, a poor credit score could lead to a rejection for a mortgage, or result in paying up to 1.5% more in interest.
How to Improve Your Credit Score
- Check Your Credit Report: Obtain your free credit report annually and check for errors.
- Pay Bills on Time: Late payments can lower your score by 100 points.
- Reduce Credit Card Balances: Aim to use no more than 30% of your credit limit.
- Avoid New Hard Inquiries: Each hard inquiry can drop your score by 5-10 points.
You could spend an hour doing this manually — or let BON Credit do it in seconds, for free.Download →
Common Mistakes and Myths
Myth 1: Checking your score lowers it. Fact: Personal checks are soft inquiries and don’t affect your score.
Myth 2: Closing old cards helps. Fact: This can hurt your score by reducing available credit and shortening credit history.
FAQ
What affects my credit score the most?
Payment history and credit utilization are the two biggest factors, making up 65% of your score.
How often should I check my credit score?
Monthly checks are ideal. You can get alerts for significant changes using apps like BON Credit.
Can I get a perfect credit score?
While it's possible, a score above 800 provides nearly all the benefits of a perfect score.
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Key Takeaways
- A good credit score ranges from 670 to 739.
- Maintaining a good score can save you thousands in interest.
- BON Credit helps you monitor and improve your score for free.
- Common myths can mislead you; understand your score fully.