What's a Good Credit Score? The Numbers That Actually Matter in 2026

I get this question at least once a week: "What credit score do I need?"

The honest answer? It depends on what you're trying to do. But I'm going to give you something more useful than that cop-out — the actual numbers that matter, what they'll get you, and how to think about your score strategically.

The Credit Score Ranges (FICO)

Most lenders use FICO scores, which range from 300 to 850. Here's how they break down:

• 800-850: Exceptional — You're in the top tier. Lenders love you.
• 740-799: Very Good — You'll qualify for the best rates on almost everything.
• 670-739: Good — Solid. You're above average and won't have trouble getting approved.
• 580-669: Fair — You'll get approved, but not at the best rates.
• 300-579: Poor — Limited options. You'll need to rebuild.

The average FICO score in America is currently around 717, according to Experian. So if you're at 720, you're doing better than most people.

What Score Do You Actually Need?

Here's the breakdown by goal:

For a Mortgage

• Minimum to qualify: 620 (conventional), 580 (FHA)
• To get good rates: 740+
• To get the best rates: 760+

The difference matters. On a $400,000 30-year mortgage, the difference between a 6.5% rate (good credit) and a 7.5% rate (fair credit) is about $250/month — or $90,000 over the life of the loan.

For an Auto Loan

• Minimum to qualify: Around 500 (subprime lenders)
• To get good rates: 660+
• To get the best rates: 720+

Auto lenders are more forgiving than mortgage lenders, but the rate spread is still significant. A 3% difference in APR on a $35,000 car loan adds about $2,700 in interest over 5 years.

For Credit Cards

• Basic cards: 580+
• Rewards cards: 670+
• Premium cards (Amex Platinum, Chase Sapphire Reserve): 720+

For Renting an Apartment

• Most landlords want: 620+
• Competitive markets (NYC, SF): 700+ often expected

For Employment

Some employers check credit (with your permission). They don't see your score, but they see your report. Late payments, collections, and bankruptcies can raise red flags, especially for financial roles.

The Magic Number: 740

If I had to pick one target, it's 740.

At 740, you qualify for the best rates on most products. Going from 740 to 800 rarely saves you any additional money — lenders typically have the same "best rate" bucket for everyone above 740 or 760.

So if you're at 745, don't stress about getting to 800. You're already in the winner's circle. Focus on other financial goals.

What Actually Affects Your Score

Five factors, weighted differently:

1. Payment History (35%) — Pay on time. Every time. This is the biggest factor.

2. Credit Utilization (30%) — How much of your available credit are you using? Keep it under 30%, ideally under 10%.

3. Length of Credit History (15%) — Older accounts help. Don't close your oldest card.

4. Credit Mix (10%) — Having different types (cards, loans, mortgage) helps slightly.

5. New Credit (10%) — Too many applications in a short period hurts.

Quick Wins to Boost Your Score

If you need to move your score up:

Immediate impact (1-2 months):

• Pay down credit card balances below 30% utilization
• Become an authorized user on someone's old, good-standing card
• Dispute errors on your credit report

Medium-term (3-6 months):

• Set up autopay on everything (never miss a payment)
• Ask for credit limit increases (lowers utilization ratio)
• Don't apply for new credit unless necessary

Long-term (6+ months):

• Keep old accounts open
• Let your credit age naturally
• Maintain good habits consistently

The Myths That Won't Die

"Checking my credit hurts my score." No. Checking your own credit is a "soft inquiry" and has zero impact. Check it as often as you want.

"I need to carry a balance to build credit." Absolutely not. Pay your full balance every month. The interest you pay doesn't help your score.

"Closing a card improves my score." Usually the opposite. It can hurt your utilization ratio and average account age.

"All credit scores are the same." Nope. You have multiple scores (FICO 8, FICO 9, VantageScore, etc.). Different lenders use different ones. Don't panic if one app shows 720 and another shows 705.

Where to Check Your Score (Free)

• Credit Karma — VantageScore (not FICO, but directionally useful)
• Discover Credit Scorecard — Free FICO (even if you're not a customer)
• Experian — Free FICO 8
• Your bank/credit card — Many now offer free scores on statements
• AnnualCreditReport.com — Free full reports from all three bureaus (weekly)

The Bottom Line

Your credit score isn't a test of your worth as a person. It's a tool — one that can save or cost you tens of thousands of dollars over your lifetime.

Aim for 740+. Pay on time. Keep utilization low. Don't obsess over the last 30 points.

And if you're below where you want to be? Every month of good behavior moves you in the right direction. It's a marathon, not a sprint.

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What's your credit score goal? Share in the comments — I'll help you figure out if it's the right target.