If you’re trying to build or maintain healthy credit, knowing what’s considered a “good” score can be helpful. A good credit score can help you get approved and lock in better rates for loans and other credit.
Higher is generally better, but it’s hard to say specifically what a “good” score is. What’s considered a good score can differ by lender and the type of credit you’re applying for. The score you see when you obtain credit monitoring or buy a credit score along with your credit report may not be the score that the lender is using. There are also different scoring models. That said, read on to learn what a good credit score range is when you check your score with TransUnion. Plus, you’ll find tips on how to maintain healthy credit.
The credit score you see if you’re signed up for TransUnion Credit Monitoring or if you purchased a credit score with your credit report is based on the VantageScore® 3.0 model. Scores in this model range from 300 to 850. A good score with TransUnion and VantageScore® 3.0 is between 720 and 780. As your score climbs through and above this range, you can benefit from the increased freedom and flexibility healthy credit brings. Some people want to achieve a score of 850, the highest credit score possible. Having this “perfect” score may feel like a win, but it isn’t necessary to enjoy the benefits of strong credit.
In TransUnion Credit Monitoring, you may also see a letter grade with your credit score. For VantageScore® 3.0, an A score is in the range of 781–850, while a B score is 720–780. A score of 658–719 is labeled a C. Think of these rankings and ranges as guides, not hard-and-fast rules for what good credit is. You can use them to help stay on the right track, but they don’t necessarily indicate if you will or won’t be approved for credit.
Think of these rankings and ranges as guides, not hard and fast rules for what good credit is.
Practicing healthy credit habits can help keep your score in a good range. It’s smart to keep your balances as low as possible. Your credit utilization, which is how much of your available credit limit you’re using, is a major factor in credit score calculations. Popular advice is to keep your utilization rate below 30%. But the lower the better — it’s smart to leave some breathing room should an unexpected expense come up.
Because your payment history is another important credit score factor, you’re likely to achieve and maintain a good credit score by not missing payments. Automate payments when you can because with multiple services, subscriptions and accounts, it can be easy to let one accidentally slip.
Aim to only apply for credit when needed. Of course, there’s no need to avoid credit altogether. For many people, life’s major purchases may require loans or other credit, and a good credit score lays the groundwork for your credit goals. But because new credit may result in hard inquiries on your report it’s smart to limit credit applications.
Some people like to take advantage of rewards credit cards that are geared toward those with good credit scores. Just make sure you’re mindful in your approach and not overspending and over-applying for the sake of some cash back or travel points.
You may see some short-term movement in your credit score. This happens as information is added or falls off your report, which can happen frequently. Our latest Consumer Pulse revealed one-third of consumers monitor their credit at least weekly. It’s encouraging to see people take an active approach to managing their credit health. But when it comes to your credit score, there’s no need to obsess over minor, day-to-day changes. Nor is it necessary to achieve a “perfect” score. Trying to stay within a certain credit range is a smart, less stressful way to monitor your score.
Also, your credit score may not be the only thing a lender looks at when making a lending decision. For example, if you apply for a mortgage, lenders may also verify your income, personal assets and employment history. Because lenders look at multiple factors, it’s important to strive for overall financial wellness in addition to any credit score goal you may have. Building an emergency savings account and creating a plan to pay down debt, if you have any, will help you be more financially secure and can reflect positively in your credit health.
Since your credit score is based off of the information in your credit report, take time to review your reports regularly. You want to be sure everything is an accurate, true reflection of your financial story. As you become more comfortable reading and understanding the data in your report, the easier it is to identify which information is potentially causing changes in your credit score.
To help you understand your credit report, we’ve created an interactive guide that breaks down each section and explains how the information may impact your credit score.