How credit score ranges work
Most consumer credit scores run from about 300 to 850. Lenders loosely group them into bands — lower scores signal more risk and lead to higher rates or declines, while higher scores unlock the best pricing.
- Excellent — roughly 800+
- Very good — roughly 740–799
- Good — roughly 670–739
- Fair — roughly 580–669
- Poor — below about 580
Typical minimums by loan type
Requirements vary by lender and program, but as a general guide:
- Mortgages — conventional loans often look for the high 600s and up; some government-backed programs allow lower.
- Auto loans — widely available across the range, but the best rates favor the 700s.
- Personal loans — many lenders want the mid-600s or higher for competitive pricing.
The rate matters more than the cutoff
Getting approved is only half the story. The same loan can cost very different amounts depending on the rate your score earns — and that gap runs for the whole life of the loan.
| High score → 7% — payment / interest | ~495 / ~4,700 |
| Lower score → 12% — payment / interest | ~556 / ~8,370 |
| Extra cost of the lower score | ~3,670 |
What lenders weigh besides the score
Your score is central, but lenders also look at your debt-to-income ratio, income stability, employment, the size of your down payment and how long you have used credit. A strong file in those areas can offset a borderline score.
How to improve before you apply
- Pay every bill on time — payment history is the biggest factor.
- Lower your credit-card utilization by paying balances down.
- Avoid opening several new accounts right before applying.
- Check your credit reports and dispute any errors.
Even a move into the next band can meaningfully cut your rate, so it is often worth waiting a few months to raise your score before borrowing.
Don't fixate on the approval cutoff — the rate is where the real money is. The same car loan can cost a few thousand more over its life just because your score sits one band lower, so it's often worth waiting a couple of months to nudge your score up before applying.
Frequently asked questions
What is the minimum credit score for a mortgage?
It depends on the program. Conventional loans often look for the high 600s and up, while some government-backed options allow lower scores, usually with other conditions.
Does a low score mean I will be denied?
Not necessarily. A low score can still be approved by some lenders, but typically at a higher interest rate. Strong income, low debt and a larger down payment can help.
How much does my score affect the rate?
A lot. Moving between score bands can change the rate by several percentage points, which over the life of a loan can mean thousands of dollars in extra interest.
How fast can I raise my score?
Lowering card balances and correcting report errors can help within a billing cycle or two, while building a longer on-time payment history takes months. Avoid new debt right before applying.
The rate-by-score example runs the same loan at two rates to show the cost gap; actual approval and pricing depend on the lender, the loan type and the rest of your application.
Treat this as background, not advice — it isn't financial, tax or lending guidance. Your bank or lender sets the actual rates, fees and approval terms, so check any number against a written offer before you commit.