What Is a Good Credit Score? Ranges Explained, Including the Credit Score to Buy a House
Most credit scores run from 300 to 850, and a score of roughly 670 or higher is commonly treated as a good credit score, with scores in the 740s and up usually counted as very good. If you are asking what is a good credit score for a home loan, the answer depends on the type of loan, but a higher score generally means more loan options and a lower interest rate. This guide explains the ranges, what lenders look at, and how your score can change what a house costs you.
How Credit Score Ranges Work
A credit score is a three digit number that sums up how you have handled borrowed money. It is calculated from the information in your credit reports, which are kept by the major credit bureaus. There is more than one scoring model, and each bureau may have slightly different information about you, so it is normal to see a few different numbers at the same time.
The bands below are the ones most commonly used for the popular scoring models. To the best of our knowledge they are a fair general guide, but each lender sets its own cutoffs.
| Score range | Common label | What it usually means for borrowing |
|---|---|---|
| 800 to 850 | Exceptional | Usually qualifies for the lowest rates a lender offers |
| 740 to 799 | Very good | Often close to the best pricing |
| 670 to 739 | Good | Approved by many lenders at reasonable rates |
| 580 to 669 | Fair | Fewer options and higher rates are common |
| 300 to 579 | Poor | Approval is harder and costs tend to be highest |
If you want the bigger picture on scores, reports and utilization, you can browse all of our credit score guides in one place.
What Goes Into Your Score
The exact formulas are private, but the scoring companies publish the main ingredients. In plain English, these are the things that move your number:
- Payment history: whether you pay on time. Late payments, collections and charge offs weigh heavily.
- Amounts owed: especially how much of your credit card limits you are using. This is called utilization, and you can read more about how credit utilization affects your score.
- Length of credit history: how long your accounts have been open, on average and in total.
- New credit: recent applications and newly opened accounts.
- Credit mix: having different kinds of credit, such as cards and installment loans.
Payment history and amounts owed tend to matter most. That is why paying down card balances is one of the more common ways people see their score change, sometimes within a billing cycle or two after the new balances are reported.
What Credit Score to Buy a House?
There is no single credit score to buy a house. Minimum score requirements depend on the mortgage program, lender and underwriting method. Some programs have published score thresholds, while others do not set a universal program-level minimum; lenders may also apply their own requirements. Here is how it generally works, to the best of our knowledge:
- Conventional loans (not backed by the government) often look for a score in the low 600s or higher, and the best pricing usually goes to borrowers in the 740s and above.
- Government backed loans, such as FHA loans, can allow lower scores, sometimes paired with a larger down payment for scores at the bottom of the range.
- VA and USDA loans are for eligible veterans and certain rural buyers. The programs themselves may not set a hard minimum, but lenders usually do.
Rules and minimums change, so I always point people to the official sources. The Consumer Financial Protection Bureau (CFPB) has plain language home buying guides at consumerfinance.gov, and the Department of Housing and Urban Development (HUD) explains FHA loans at hud.gov.
Your score is only one piece. Lenders also look at your income, your savings, your down payment and your debt to income ratio, which compares your monthly debt payments with your monthly income. You can run your own numbers with our free debt to income ratio calculator before you talk with anyone.
How Your Score Changes the Cost of a Home
Lenders use your score to price risk. A lower score often means a higher interest rate, and on a 30 year loan, even one percentage point adds up. The rates below are made up for illustration, not quotes.
Example: two buyers each borrow $200,000 for 30 years.
- Buyer A has a higher score and gets 6% interest. The monthly principal and interest payment is about $1,199.10.
- Buyer B has a lower score and gets 7% interest. The monthly payment is about $1,330.60.
- Difference per month: $1,330.60 minus $1,199.10 = $131.50.
- Difference per year: $131.50 × 12 = $1,578.
- Difference over the full loan: $131.50 × 360 payments = $47,340.
Same house, same loan amount, and roughly $47,000 more in interest over 30 years if the loan runs its full term. You can try your own numbers with our mortgage calculator with a savings comparison to see how different rates change the payment and the total interest.
Checking and Improving Your Score
Before applying for any loan, it helps to know where you stand. Many people look at both their score and their full credit reports, because the reports show the details behind the number, including any mistakes.
- Get your reports. Here is how to get your credit reports and what to look for in them. The official source for reports is annualcreditreport.com, and the CFPB and FTC explain your rights.
- Look for errors. Accounts you do not recognize, wrong balances or late payments you did make on time can be disputed with the bureau. The CFPB and FTC describe how disputes work.
- Know the main levers. On time payments and lower card balances are the factors people can most directly influence. Our guide to steps to improve your credit score walks through the trade offs.
- Plan around timing. New applications can cause a small, temporary dip, which is something to keep in mind in the months before a mortgage application.
Scores are not permanent. Negative items fade in importance over time, and steady on time payments build a better history month by month.
FAQ
Is 700 a good credit score?
Yes, by the commonly used bands, 700 falls in the good range. It is usually enough for many types of credit, though the lowest rates on a mortgage are typically reserved for higher scores.
What is the lowest credit score to buy a house?
It depends on the loan type and the lender. To the best of our knowledge, some government backed loans allow scores in the 500s, while conventional loans usually look for higher scores. Check the CFPB and HUD for current program rules, since they can change.
Why are my credit scores different on different sites?
There are several scoring models and versions, and each credit bureau may have slightly different information about you. Mortgage lenders often use specific older model versions, so the score a lender sees can differ from the one you see in an app.
Does checking my own credit score lower it?
No. Checking your own score or report is a soft inquiry and does not affect your score. A hard inquiry happens when a lender pulls your credit because you applied for new credit, and that can cause a small, temporary drop.
How long does it take to raise a credit score?
It varies. Lower card balances can show up once the new balances are reported, often within a month or two. Recovering from late payments or collections usually takes longer, because those items stay on reports for years even as their weight shrinks.