Credit Ranges - What Your Score Means for Your Everyday Life

Introduction

Even if you’re absolutely new to credit, there’s a good chance you know that a high credit score is preferable to a low credit score.

But at what point do scores go from helping you to hindering you? Are there good scores, OK scores and bad scores?

To help answer questions like this, the credit industry uses labels for credit score ranges. You’ve probably heard them before, with names like “good,” “prime, “subprime” and more.

But what do they mean? And how does the credit score range you fall into affect you? Let’s find out.

Understanding Credit Score Models

Before we dive into credit score ranges, we need to understand a few basics about your scores.

That’s right, scores, because we actually have more than one credit score.

Different companies have developed their own models for generating credit scores from the information on your credit reports. The two major ones are FICO^® and VantageScore^®.

These companies have created various versions of their scoring models over the years. The FICO Score 10 suite and VantageScore 4.0 are the most recent models, although FICO Score 8 and VantageScore 3.0 are still the most used. Lenders choose which company and model they prefer.

Each company’s models source and process the information on your credit report in different ways, but they both currently use credit scores ranging from 300 to 850.

The companies also use different names and cutoffs for their credit score ranges, but we’ll group similar ranges together to keep things simple.

Very Good to Exceptional / Excellent / Superprime

Let’s start from the top. These high-level score ranges include:

FICO

• Exceptional (800 to 850)

• Very Good (740 to 799)

VantageScore 3.0

• Excellent (781 to 850)

VantageScore 4.0

• Superprime (781 to 850)

Regardless of the model, the highest credit score ranges come with the most benefits.

With a credit score in these ranges, you’re likely to qualify for almost any credit product you apply for. Lenders will see that you pay your bills on time, can manage multiple credit accounts wisely and overall, you’re a low-risk customer.

If you fall into these credit score ranges, you’ll probably have an easier time applying and being approved, and get lower interest rates, higher credit limits and the best terms overall.

Good / Prime

Even if they aren’t at the top of the list, these credit score ranges are nothing to sneeze at. These include:

FICO

• Good (670 to 739)

VantageScore 3.0

• Good (661 to 780)

VantageScore 4.0

• Prime (661 to 780)

If your score is in this range, you may still have some of the same advantages as the tier above. Lenders can see you have a good history of managing credit well, even if there might be a little bit of room for improvement.

Still, there are plenty of perks with a good credit score. You’ll probably qualify for better interest rates on auto and home loans and be able to choose from many rewards credit cards with good terms.

And as of 2024, the average U.S. credit scores fall within this range. The average FICO credit score is 715 and the average VantageScore 4.0 credit score is 702.

Fair / Near Prime

Moving down the scale a bit further, let’s take a look at the next set of ranges:

FICO

• Fair (580 to 669)

VantageScore 3.0

• Fair (601 to 660)

VantageScore 4.0

• Near prime (601 to 660)

At this level, there may be some challenges. Credit cards are still available, but their interest rates are likely to be higher.

You might not be accepted for some lucrative rewards cards or get the best loan terms. And your credit limits might be smaller than for higher ranges.

If you fall within these ranges, you may want to work on your credit score to get better terms. You can start by responsibly managing the credit you can get (or already have access to).

It may also be a good idea to check your credit report for any errors, since those can ding your score significantly.

Very Poor to Poor / Subprime

These are the lowest credit score ranges, which include: 

FICO

• Poor (300 to 579)

VantageScore 3.0

• Poor (500 to 600)

• Very poor (300 to 499)

VantageScore 4.0

• Subprime (300 to 600)

In this range, lenders may consider you a high-risk borrower. It might signal that you have issues with your credit, some major negative credit events in the past, and that you could become delinquent. So you’d be less likely to be approved for new lines of credit or auto loans.

In fact, because credit scores are used in a variety of situations, a credit score in this range may even make it harder to find a new apartment.

The good news? Credit scores aren’t permanent, so there’s always a way to improve your score.

First, it’s a good idea to understand what does and doesn’t affect your credit score. You want to avoid anything that can lower your credit score.

Then you can do things like check your credit report for errors, consider secured cards or cards for building or rebuilding credit and remember to pay at least the minimum balance on time, every time.

That last part is important, since your payment history is one of the major factors in calculating your credit score. A late or missed payment could undo the progress you’ve made.

Bottom Line

Credit score ranges help us better understand what our actual credit score number means.

Yes, falling into one of the upper ranges is a huge benefit and falling into the lower ranges can really limit your opportunities. But when you’re building credit, it can be incredibly helpful and motivating to know that you’re close to crossing the threshold from “fair” to “good.”

If you’re currently in the lower credit score ranges and looking to improve your score, you may want to consider a secured credit card, like the Credit One Bank Secured Card.

Secured cards are typically easier to obtain and require an initial deposit as collateral, which will typically equate to your credit limit. These cards are specifically designed to help build or rebuild credit with responsible use.