Credit scores run from 300 to 850 in both major models. Lenders do not read the exact number — they read the tier it falls into.
FICO tiers
| Range | Label | Share of U.S. consumers (approx.) |
|---|---|---|
| 800-850 | Exceptional | 21% |
| 740-799 | Very good | 25% |
| 670-739 | Good | 21% |
| 580-669 | Fair | 17% |
| 300-579 | Poor | 16% |
VantageScore uses similar bands with slightly different labels. Most personal lenders quote from FICO 8 or FICO 9.
What each tier costs on a $10,000, 3-year personal loan
| Tier | Typical APR | Total interest |
|---|---|---|
| 780+ | 8% | ~$1,280 |
| 720-779 | 12% | ~$1,957 |
| 670-719 | 17% | ~$2,830 |
| 620-669 | 24% | ~$4,120 |
| 580-619 | 31% | ~$5,500 |
Moving one tier up is worth roughly $700-$1,400 on a single loan of this size. Across a mortgage, an auto loan, and insurance premiums, the lifetime difference between fair and very good credit runs into the tens of thousands.
What builds the score
- Payment history — 35%. One 30-day late can cost 60-110 points from a high score.
- Amounts owed — 30%. Mostly credit utilization.
- Length of credit history — 15%. Average age of accounts; closing old cards hurts here.
- Credit mix — 10%. Having both revolving and installment accounts.
- New credit — 10%. Hard inquiries and recently opened accounts.
Why your scores differ between apps
Free score apps usually show VantageScore 3.0 from one bureau. Lenders typically pull FICO from a specific bureau, often an industry-specific version (auto or bankcard enhanced) that runs on a 250-900 scale. A 20-40 point spread between what you see and what a lender sees is normal.
Practical targets
- 620 — the floor for most mainstream personal lenders
- 670 — rates stop being punitive
- 720 — access to the best personal loan and auto pricing
- 760 — best mortgage tier; further gains are marginal
If you are within 20 points of the next tier, spend a month on utilization before applying. The rate difference usually dwarfs the wait. See the 100-point plan.