Key Takeaway: A fair credit score depends on the credit scoring model, but it’s usually considered 580 to 669 by FICO® and 601 to 660 by VantageScore. You’ll often have access to loans and credit cards with a fair credit score, though your options will likely be more limited and you won’t get the most competitive rates and terms.
A credit score of at least 580 to 601 is usually considered a fair credit score, depending on the scoring model. The two most common models — FICO® and VantageScore — each weigh factors slightly differently. FICO® considers 580 to 669 a fair credit score, and VantageScore considers 601 to 660 a fair score.
Each credit-scoring model uses a unique formula to calculate credit scores based on the information in your credit reports. A fair credit score will often get you access to loans and credit cards, but not at the best rates and terms.
And keep in mind that different lenders have their own standards for rating credit scores. Credit Karma offers free VantageScore 3.0 credit scores from Equifax and TransUnion.
- What is fair credit?
- What are the benefits of good credit scores?
- Next steps: Monitoring your progress
- FAQs about fair credit scores
What is fair credit?
Having fair credit generally means your credit history has some blemishes or is relatively limited, but it hasn’t fallen into the “bad” credit range. Lenders may view you as a subprime borrower, which signals a higher risk than borrowers with a good credit score.
From a lender’s perspective, fair credit suggests you’re willing to pay your debts but there might be red flags, such as …
- High credit card balances
- A short credit history
- A few late payments in your past
Because of this perceived risk, some lenders may still be willing to lend to you, but they may charge higher interest rates or require additional security deposits.
The three major consumer credit bureaus — Equifax, Experian and TransUnion — may each have different information about you on file since not all creditors report to each bureau. Because your scores are based on this data, a lender checking your TransUnion report might see a slightly different picture than one checking your Experian report.
Different credit-scoring models also weigh information in your credit reports differently, so your scores will likely have some variability.
What is good credit
A good credit score is usually considered 670 to 739 by FICO® and 661 to 780 by VantageScore®. A good credit score will likely get you better terms and rates than a fair credit score, but keep in mind that to access the most competitive rates, you’ll likely need a score of 740 or better.
VantageScore® credit score ranges
Many top banks, lenders and card issuers use VantageScore 3.0. While there are multiple VantageScore scores, Credit Karma provides scores from the VantageScore 3.0 credit scoring model.
On a standard credit score range of 300 to 850, a fair VantageScore 3.0 is between 601 and 660.
- 300–600: Poor
- 601–660: Fair
- 661–780: Good
- 781–850: Excellent
FICO® credit score ranges
FICO® scores are also used by many lenders. While VantageScore and FICO versions have similarities, their ranges differ slightly. A fair FICO® Score 8 credit score is between 580 and 669.
- 300–579: Poor
- 580–669: Fair
- 670–739: Good
- 740–799: Very Good
- 800–855: Exceptional
What are the benefits of good credit scores?
Moving your scores out of the “fair” range and into the “good” range can have a real impact on your financial life. While fair credit usually allows you to access credit, having good credit scores can improve your options in several key ways.
Better credit card offers
Credit card issuers typically reserve their best card offers — including cards with rewards, cash back and introductory APRs — for people with excellent or good credit. With fair credit, you may be limited to secured cards or cards with fewer perks or lower credit limits.
Lower interest rates
In general, people with higher credit scores are more likely to qualify for lower rates on personal loans, auto loans and mortgages. Lenders view these borrowers as lower risk and offer better terms to win their business.
Those lower rates can make a meaningful difference in how much you pay over time.
For example, let’s say you wanted to take out a personal loan for $10,000 with a three-year repayment plan. If you receive a 7% interest rate versus a 17% interest rate, you’ll save more than $1,700 in interest over the life of the loan.
A debt repayment calculator can help you figure out exactly how much to pay each month and when you’ll finish paying off your debt.
Lower insurance premiums
In some states, insurance carriers can use credit-based insurance scores, such as a home insurance score, to help determine your premiums for auto or home insurance. Studies have shown a correlation between credit history and insurance claims, so people with better credit tend to pay less for coverage.
More rental options
Landlords often run a background check — which may include a credit check — before renting an apartment or house to a tenant. If you have fair credit, a landlord might require a larger security deposit or a cosigner. In competitive rental markets, higher scores can give you an edge over other applicants.
Next steps: Monitoring your progress
Improving a fair credit score takes time, consistency and understanding your credit scores. Scoring models typically focus on these five credit score factors.
- Payment history — This is typically the most important factor and looks at whether you have a track record of paying on time.
- Amounts owed — This is typically the second-most important factor and takes into account your credit utilization rate, or how much debt you carry compared to how much available credit you have across your accounts.
- Length of credit history — This considers the age of your accounts, including your longest and shortest accounts and average age.
- Credit mix — This refers to the different types of credit you may have, such as a credit card and an auto loan. A mix of types can show you know how to handle different types of financial products.
- New credit — This considers the amount of new credit applications you’ve sent in recently and is affected every time a lender does a hard credit check on your credit report.
Focusing on positive habits — like paying on time and reducing your debt — can help you gradually move your score into the “good” range. Routinely checking your credit report to dispute errors you find is also important.
For more quick tips, check out our guide to improving your credit score.
FAQs about fair credit scores
Having a fair credit score is better than having a poor score, and it usually means you can still get approved for some loans and credit cards. However, “fair” credit often comes with higher interest rates and fewer borrower perks than “good” or “excellent” credit. Improving your score can help you get better terms.
Your credit scores are influenced by several factors found in your credit report. The most influential factors generally include your payment history (whether you pay on time), your credit utilization (how much debt you have vs. your limits), the length of your credit history, your mix of credit types and recent hard inquiries from new credit applications.
To improve a fair score, focus on paying your bills on time and paying down high credit card balances to lower your utilization rate. Avoid applying for multiple new credit accounts in a short period. Regularly check your credit reports for errors and dispute inaccuracies.