What Is a Good Credit Score? Here's What Lenders Actually Want

What Is a Good Credit Score? Here's What Lenders Actually Want

When people ask "what is a good credit score," they're really asking: will lenders approve me, and what rate will I pay? A score that's "good enough" for a credit card might not be good enough for a mortgage at a rate you can actually afford.

The Short Answer: 670+ Is "Good," But 740+ Is Where Real Benefits Start

• 800–850: Exceptional — best rates on everything
• 740–799: Very Good — nearly as good as exceptional for most products
• 670–739: Good — approved for most things, not always best rate
• 580–669: Fair — subprime territory; high rates, limited approvals
• 300–579: Poor — most traditional lenders will decline

What's a Good Score for a Mortgage?

For conventional mortgages, minimum is 620 — but there's a huge difference between minimum and optimal:

• 760+ score: ~6.5% APR → $1,896/month on $300k
• 680–719: ~7.2% APR → $2,040/month (+$144/month)
• 620–639: ~8.5% APR → $2,307/month (+$411/month)

Going from 620 to 760 saves $411/month — $4,932/year — $147,960 over 30 years.

What's a Good Score for a Car Loan?

• 720+ (Super Prime): ~5-7% APR
• 660–719 (Prime): ~7-10% APR
• 620–659 (Near Prime): ~11-15% APR
• 580–619 (Subprime): ~15-20% APR

On $35,000 / 60 months: difference between 7% and 18% is $9,175 in total interest (~$153/month extra).

What's a Good Score for a Credit Card?

• Premium rewards cards (Sapphire Reserve, Amex Platinum): 720+
• Good rewards cards (Citi Double Cash, Chase Freedom): 670+
• Basic approvals: Some cards at 580+ with higher APRs

What's a Good Score to Rent an Apartment?

Most landlords want 620-650 minimum. Competitive markets (NYC, SF, LA) often prefer 680-700+.

The Average American's Score

Average FICO: 716 — technically "good." But someone at 716 who improves to 760 might qualify for a better mortgage rate (saving $100+/month), better rewards credit cards, and lower auto loan rates (saving $50-100/month).

What Your Score Is Worth Annually

Improving from 620 to 740: Mortgage savings ~$150/month ($1,800/year), auto loan ~$80/month ($960/year), credit card interest ~$600/year. Total: $3,360+/year. Every year. Without earning a single extra dollar.

BON Credit may earn compensation from partner offers mentioned in this article.