Your FICO credit score is based on the way you manage credit, from your payment history to your recent credit applications. It also plays a major role in your ability to access new credit. That’s why it’s important to understand what a FICO score is, how it’s calculated and how FICO score ranges affect everything from whether your next credit card application gets accepted to how much interest you’ll pay on your mortgage.

What is a good FICO score? Why should you work toward the “very good” or “exceptional” FICO score ranges? Let’s take a look at what FICO is, how to determine where you fall on the FICO score chart and where to get a free FICO score.

What is a FICO score?

A FICO score is any credit score provided by the Fair Isaac Corporation. The Fair Isaac Corp. is not the only service that provides credit scores—VantageScore, for example, also issues credit scores and is FICO’s main competitor.

That said, FICO is quite possibly the leading credit score issuer in the industry. According to, 90 percent of top lenders use FICO scores to make lending decisions, including whether to accept or decline a credit application and how much interest to charge.

What are the FICO score ranges?

Every FICO credit score falls within one of five FICO score ranges. These rankings are designed to help lenders understand whether you are likely to use credit responsibly or whether you are likely to be a credit risk.

Here’s a breakdown of the five categories of FICO scores:

  • 800-850: Exceptional—Your credit is either perfect or very close to it. Lenders consider you an exceptional consumer and are likely to offer you very favorable interest rates and loan terms.
  • 740-799: Very good—Your credit is well above average and you are considered a responsible borrower. You are eligible for nearly all of today’s best credit cards as well as lower interest rates on credit cards, mortgages and loans.
  • 670-739: Good—Your credit score is close to the national average, and you have proved that you can handle credit accounts without defaulting. Lenders are likely to accept your credit applications, but may not offer you the best interest rates.
  • 580-669: Fair—Your score is below average, which indicates that you might be a potential credit risk. You might have more difficulty taking out new lines of credit.
  • 300-579: Poor—Your score is well below average and your credit history indicates that you might not be able to handle credit accounts responsibly. Lenders may reject your credit applications unless you specifically apply for credit cards designed to help you rebuild your credit.

What is a good FICO score?

A good FICO credit score is any score of 670 and above. But if you really want to take advantage of lower interest rates, better credit card rewards and more favorable loan terms, you’re going to want to get your FICO credit score into the very good or exceptional range.

Building a good credit score is one of the best things you can do for your overall financial health. But getting your credit score into the good FICO score range is just the baseline. According to FICO, the average credit score was 711 as of July 2020.

When you have good credit, lenders understand that you are unlikely to default on your debts—but you haven’t yet proven that you are an exceptional credit consumer. This means you may not qualify for some credit cards designed for people with excellent credit. If you’ve gotten yourself into the good FICO score range, give yourself a pat on the back and then ask yourself what you can do to get your credit score even higher.

Why is your FICO credit score important?

Your FICO credit score matters because lenders, landlords and insurance companies use credit scores to help them make decisions. Having a credit score that falls within the very good or exceptional FICO score range, for example, could save you a lot of money on your mortgage. Having a credit score that falls within the fair or poor ranges, on the other hand, could make it more difficult to access new lines of credit. A low FICO credit score might even affect your ability to rent an apartment.

This is why having good credit is so important. Once you build a good FICO score, doors will begin to open for you. If you continue to increase your FICO score, you’ll have access to better credit cards, higher rewards, lower interest rates and more financial opportunities.

Why are there different FICO scores?

FICO is continually updating its credit score models, which is why there are many different FICO scores. Currently, most lenders use the FICO 8 model to make credit decisions—but FICO recently introduced the FICO Score 10 Suite. This latest scoring model is designed to improve on both the FICO 8 and FICO 9 models by providing a more accurate assessment of an individual’s potential credit risk.

There are also different types of FICO credit scores. If you are refinancing a car loan, for example, a lender might look at your FICO Auto Score. If you are applying for a credit card, a lender might check either your FICO 8 score or your FICO Bankcard Score.

FICO is also working to help more consumers access the benefits of a good FICO credit score. The UltraFICO score factors bank account balances and other noncredit data into your FICO score. This makes UltraFICO an excellent option for people who have a limited credit history or who want to build credit without a credit card.

Do you need to know your FICO 8 score vs. your FICO 9 score vs. your FICO Auto Score? According to FICO, knowing your FICO 8 score is good enough for most situations, since FICO 8 is the most widely used credit score model. That said, you may want to look into more specialized FICO scores if you are considering applying for a car loan or taking out a mortgage.

How is your FICO score calculated?

FICO calculates your credit score by pulling data from your Experian, Equifax and TransUnion credit reports. FICO uses this information to generate a three-digit FICO credit score based on the following five factors:

How to get a free FICO score

It’s a good idea to check your credit score on a regular basis. If you want to get a free FICO score, here are some tips:

  • Many banks and credit card issuers offer free credit scores.
  • A good credit monitoring service will not only provide you with updated credit score information but will also help you understand why your credit score might have changed and what you can do to improve your score in the future. If you want a free FICO 8 score, consider signing up for Experian’s free credit monitoring service.
  • Some personal finance apps, such as Mint, offer free credit scores. However, Mint uses the VantageScore model—which means that although you’ll still get a good overview of where you stand, you may need to look elsewhere for a free FICO score.