What is a fair credit score?

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

A fair credit score commonly refers to any FICO^® score between 580 and 669. Most FICO scores fall into one of the following five categories on a scale from 300 to 850:

FICO® score categories	Credit score ranges
Poor	300 to 579
Fair	580 to 669
Good	670 to 739
Very good	740 to 799
Excellent	800 to 850

It’s important to know your credit score and where it falls on the scale, especially if you plan to apply for loans, sign a lease, buy a house or take out credit. Lenders use your credit to help determine how risky it is to lend to you, and a fair score could impact your credit terms and chances of being approved. 

Table of contents:

• What is a fair VantageScore®?
• Is a fair credit score good?
• What is the average credit score?
• What lowers your credit score?
• Fair vs. good credit score
• How to improve your fair credit score

What is a fair VantageScore^®?

If you use VantageScore® as your go-to credit model, a fair score will fall into the 601 to 660 range. VantageScore, another popular scoring model, uses the following five scoring categories to classify credit scores:

VantageScore® categories	Credit score ranges
Very poor	300 to 579
Poor	580 to 669
Fair	670 to 739
Very good	740 to 799
Excellent	800 to 850

Is a fair credit score good?

If your credit score falls into the “fair” range, lenders could view you as a subprime borrower or a financial risk and might hesitate to offer you a line of credit. You might still qualify for credit cards and loans with a fair score, but they’ll likely come with higher-than-average interest rates and up-front deposits. Borrowers with fair credit may also pay more in interest on credit cards and other loan types than borrowers with good or better credit. Some lenders might even reject your application altogether if your score falls below their minimum requirement for approval.

To improve your chances for approval, you can take steps to fix your credit. Moving your score into a higher category over time could earn you lower interest rates on home, student and personal loans and strengthen your approval chances when submitting rental applications.

Fortunately for those with a lower score, lenders also consider other factors when calculating the risk associated with lending to the individual, such as proof of income or employment history. Minimum requirements for approval also vary by lender, so lower credit doesn’t automatically disqualify an individual from taking out lines of credit. 

What is the average credit score?

As of October 2023, the average FICO score in the United States is 717. Any score between 670 and 739 falls into the “good” category, suggesting a considerable number of Americans have a credit score that’s good or better. 

With that said, lenders don’t consider the national average when deciding what an acceptable credit score is. While it can be helpful to see how your score stacks up, meeting the average doesn’t necessarily guarantee approval, just as a below-average score doesn’t guarantee disapproval. 

What lowers your credit score?

Before you can start improving your credit, it’s important to consider what factors might be holding it back. Common credit-lowering actions include missing payments, defaulting on accounts and consistently using more than 30 percent of your available credit. Applying for a lot of credit in a short period can also damage your credit health because it could indicate to lenders that you are in a tough financial situation or have applied for more credit than you can handle.

Once you’ve identified the items hurting your credit, you can start taking steps to address them.

Fair vs. good credit score

When it comes to applying for loans and opening new lines of credit, good credit can qualify you for fantastic opportunities. Good credit is one rung above fair credit and one level below very good credit, according to FICO. However, individuals with fair credit shouldn’t feel discouraged—having a score in the 580 to 669 range can still qualify you for better loans than you might have been restricted to if you had poor credit.

And fortunately, it’s possible to gradually transform a fair credit score into a good one by practicing responsible financial habits.

How to improve your fair credit score

No credit score is set in stone. With the right strategy and a little time, you could get your fair credit to be good, or even very good. Consider the following tips that could help you improve your credit, which could also improve your chances of qualifying for better terms and rates over time.

Keep your credit utilization ratio low

Your credit utilization ratio refers to the percentage of your available credit that’s in use at any given time. Generally speaking, it’s good practice to keep your credit utilization ratio below 30 percent. With less credit in use, your score may rise and lenders may be more inclined to approve any future credit applications.

Pay bills on time

Payment history can greatly impact your credit score, so making payments on time is important if you want to improve it. If you’ve struggled to pay on time, consider setting up automatic payments. It’s also important to get current on any late payments as soon as you can. 

Check your credit reports and dispute any errors

Inaccuracies appear on credit reports more often than you might think. Inaccurate information could harm your credit, so it’s important to regularly monitor your reports from all three credit bureaus and dispute any errors. The process can help ensure your credit reports give lenders the most accurate assessment of your credit history. 

Start improving your score today

If you’re struggling to improve your credit on your own, working with a credit repair service could be invaluable. They could help you design a tailor-made plan to manage your credit and improve your credit over time. By collaborating with a professional, you can come up with a credit strategy that meets your financial needs and goals.

Before you can create a plan to take a fair score to new heights, it’s important to understand where your credit score currently lies and what factors are affecting it. At Lexington Law, our team could help you make sense of your credit—and how to improve it. Take our free credit assessment to get started today. 

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