What Is A Good FICO (Fair Isaac Corporation) Score?

A good FICO score for most consumers falls between 670 and 739. This 'Good' band sits above the Fair range (580‑669) and below Very Good (740‑799), and lenders typically view it as sufficient for standard credit products such as auto loans, mortgages, and most credit cards. For the exact industry definitions, see the official FICO score range guide.

Someone with a 680 score usually qualifies for an average‑rate auto loan and can open a new credit‑card account with modest limits. A borrower scoring 720 often secures a mortgage with competitive interest rates, while a 735 score may grant access to premium cards and higher credit limits. If you aim for the best rates or the most exclusive offers, pushing into the 740‑799 Very Good range can make a noticeable difference.

A FICO score of 740 or higher - falling into the Very Good (740‑799) or Exceptional (800‑850) brackets - generally secures the lowest interest rates on mortgages, auto loans, and credit cards. Lenders often shave a few basis points for every 20‑point rise above 740, while scores under 720 can cost 1‑2 % more in APR.

Because higher FICO scores signal lower risk, lenders reward the Very Good and Exceptional ranges with their best rates; a Good score (670‑739) may still earn decent terms but rarely the top‑tier offers. This distinction explains the lender preferences we'll explore in the upcoming sections on mortgages, auto loans, and credit cards. For the official range definitions, see FICO score range guide.

Lenders generally prefer FICO scores of 740 or higher for mortgage approval and the lowest rates.

• Very Good (740‑799): most conventional lenders target this range for standard loan products and qualify borrowers for competitive interest rates.
• Exceptional (800‑850): scores in this tier unlock the best‑available rates, may waive private‑mortgage‑insurance, and give borrowers the strongest negotiating power.
• Good (670‑739): still acceptable for many lenders, especially for conventional loans with a larger down payment; rates are higher than in the Very Good range.
• Fair (580‑669): typically required only for government‑backed loans such as FHA or VA; borrowers may face higher rates and stricter documentation requirements.
• Below 580: considered Poor and rarely approved for mortgages unless the borrower has a substantial down payment or a strong compensating factor like high income or significant assets.

Lenders generally favor borrowers with a Good FICO score (670‑739) or higher for auto loans; a Very Good score (740‑799) typically secures the lowest APRs, Fair scores (580‑669) may still be approved but at higher rates, and scores below 580 are often declined.

• Good (670‑739) - considered acceptable; most lenders offer standard terms and modestly higher rates than Very Good.
• Very Good (740‑799) - preferred tier; usually qualifies for the best interest rates and promotional incentives.
• Exceptional (800‑850) - rare in the auto market but guarantees the most competitive pricing.
• Fair (580‑669) - may be financed, but lenders typically impose higher APRs and stricter conditions.
• Poor (<580) - generally results in denial or limits borrowers to subprime lenders with steep rates.

Lenders generally favor a FICO score of Good (670‑739) or higher when approving credit cards.

A score in the Good range usually earns standard cards with modest rewards, while a Very Good score (740‑799) unlocks premium cards offering higher cash‑back or travel perks. An Exceptional score (800‑850) gives access to elite cards that feature the best interest rates, highest credit limits, and exclusive benefits.

Applicants with a Fair score (580‑669) may still receive a card, but it will often be a secured or subprime product with lower limits and higher fees; other factors such as income or existing debt also influence the decision.

Pay down balances, fix errors, add positive accounts, diversify credit types, and time payments; these five actions can raise your FICO score quickly.

1. Reduce revolving utilization - Pay off credit‑card debt so the ratio of balances to limits falls below 30 %. Lower utilization improves the score within one or two billing cycles, especially for scores in the Poor (below 580) or Fair (580‑669) range.
2. Correct inaccurate items - Review your credit reports, dispute any errors, and request deletions. A single removed charge‑off or mis‑reported late payment can boost a score by 20‑50 points almost instantly.
3. Become an authorized user - Ask a trusted family member to add you to a long‑standing, low‑balance credit‑card account. The positive payment history and low utilization may lift your score, even if you have a thin file.
4. Add a small installment loan - Open a credit‑builder loan or take a modest personal loan and make on‑time payments. The new installment mix can improve the 'credit mix' factor, nudging scores from Fair toward Good (670‑739).
5. Shift payment timing - Pay bills a few days before the statement closing date to keep reported balances low, and set up automatic payments to guarantee no missed dates. Consistent on‑time payments reinforce the strongest scoring pillar, payment history.

These steps target the three major FICO components and often produce noticeable gains within a few months, setting you up for the better rates discussed in the earlier sections on mortgage and auto‑loan preferences.

Negative items pull your FICO score down, and the hit varies by what the item is, how recent it is, and where your score sits in the Poor‑to‑Exceptional range. A single 30‑day late payment can shave 20‑100 points, a collection or charge‑off may erase 60‑125 points, and a Chapter 7 bankruptcy can drop 150‑200 points, especially if you started in the Good or Very Good brackets.

• Most negative items - late payments, charge‑offs, collections, repossessions - stay on your credit report for 7 years from the first delinquency date.
• A Chapter 7 bankruptcy remains for 10 years; a Chapter 13 bankruptcy stays for 7 years after the discharge.
• Tax liens linger for 7 years after they're paid or become incontestable.
• Hard inquiries drop off after 2 years, with their effect on your FICO score usually fading within the first 12 months.
• Positive data (on‑time payments, low balances) never expires and gradually outweighs older negatives as they age.

If a late‑payment tag, an inquiry, or an inaccurate balance shows up on your report, you can dispute it to prevent the error from dragging down your FICO score.

• Gather the original document that proves the correct information (bank statement, payment receipt, or lender letter).
• Log in to the credit‑bureau website (Equifax, Experian, or TransUnion) and locate the 'Dispute' section.
• Upload the supporting document, describe the inaccuracy, and select the item you want removed or corrected.
• The bureau must investigate within 30 days and send you the findings.
• If the investigation confirms the error, the bureau updates the entry and notifies the other two bureaus.
• Review the updated report; a removed late payment can lift a Poor score (below 580) into the Fair range (580‑669), while correcting a balance error may push a Good score (670‑739) toward Very Good (740‑799).

Once the dispute resolves, monitor your FICO score regularly and consider setting up alerts for future changes. For a step‑by‑step guide, see Consumer Financial Protection Bureau's dispute instructions.

Lexington Law addresses identity‑theft claims by filing the required paperwork and disputing fraudulent items to help restore your FICO score.

• They guide you through the FTC Identity Theft Report and the Identity Theft Affidavit, then submit both to the three major bureaus.
• They place a fraud alert or credit freeze, which forces lenders to verify your identity before opening new accounts.
• They dispute each unauthorized account, collection, and inquiry, citing the FTC report and any supporting documentation you provide.
• They monitor the bureaus' responses, follow up on unresolved items, and request removal of any inaccurate negatives that remain.

By handling these steps, Lexington Law may accelerate the clearing of fraudulent entries, which can gradually lift your FICO score once the false data disappears. This process ties directly into the dispute workflow described earlier and sets the stage for the 'when Lexington Law can't help' scenarios discussed later.

If you're self‑employed, lenders mainly check three things: your FICO score, documented income stability, and debt‑to‑income ratio.

Traditional lenders usually stick to the FICO score bands you saw earlier. They typically require a Good score (670‑739) or higher, may reject applications in the Fair (580‑669) or Poor (below 580) range, and focus on payment history, credit utilization, and length of credit.

Lenders that specialize in self‑employment often look past the score. They may accept a Fair score if you can show two‑plus years of steady 1099 or Schedule C income, a low debt‑to‑income ratio, and sufficient cash reserves. A 620 score coupled with three years of profitable tax returns and a 20 % down payment can still qualify for a mortgage at a competitive rate.