A good credit rating and a good credit score both refer to a positive assessment of your creditworthiness, but they aren't the same thing. A credit score is a specific three-digit number (typically 300 to 850) calculated by a scoring model like FICO or VantageScore. A credit rating is a broader label (like "Good," "Fair," or "Poor") that describes which range your score falls into. On the FICO scale, a "Good" credit rating starts at 670. For renters, building credit through rent reporting is one of the most direct paths to reaching and maintaining a Good rating.
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Credit Score vs. Credit Rating: What's the Difference?
These two terms are often used interchangeably, but they mean different things.
Credit score: a specific number calculated by a scoring model (FICO, VantageScore) based on data in your credit report. Your FICO score might be 714, for example.
Credit rating: the descriptive label that corresponds to a score range. A FICO score of 714 falls in the "Good" range, so your credit rating would be described as Good.
Think of it like a letter grade. Your test score might be 87 out of 100. That's the equivalent of a credit score. Your grade is a B. That's the equivalent of a credit rating.
There's one additional place where "credit rating" means something different: for companies and governments, credit rating agencies like Moody's and S&P assign letter-based ratings (AAA, BBB, etc.) that work similarly but are entirely separate from consumer credit scores.
What the Credit Rating Categories Mean in Practice
Each step up in rating has a real dollar value. A renter moving from Fair to Good isn't just crossing a threshold. They're unlocking better apartment approvals, lower loan rates, and more financial flexibility across the board. For a full cost breakdown of what each range means in dollars, see what does your credit score actually impact.
What Goes Into Your Credit Rating?
Your credit rating is determined by your credit score, which is calculated from five factors:
Payment history (35%). The single most important factor. Every on-time payment strengthens your rating. Every missed payment damages it. This is why rent reporting is particularly valuable for renters. It converts your largest monthly payment into a recurring positive mark on your payment history.
Credit utilization (30%). How much of your available revolving credit you're using. Below 30% is the benchmark. Below 10% is ideal. See credit utilization: what it is and how to lower it.
Length of credit history (15%). Older accounts strengthen your rating. Closing old accounts, even unused ones, can lower your rating by shortening your credit age.
Credit mix (10%). Having a variety of account types (revolving credit like cards, installment loans, and rent reporting credit accounts) signals responsible credit management.
New credit (10%). Applying for multiple new accounts in a short period creates hard inquiries that can temporarily lower your rating.
How to Move to a Better Credit Rating
Moving from one rating category to another follows the same principles regardless of where you start. It's a matter of which levers you pull and how quickly.
From Poor to Fair (below 580 to 580 to 669): Focus on stopping new damage first. Set up autopay on everything. Pay down the highest-utilization cards. Dispute any errors on your report. This alone can move many people out of the Poor range within 6 to 12 months.
From Fair to Good (580 to 669 to 670 to 739): Maintain a perfect payment record going forward. Continue lowering utilization. Add rent reporting if you haven't already. The consistent positive credit account from Roots Growth builds the payment history depth that pushes scores into the Good range. This transition typically takes 3 to 12 months.
From Good to Very Good or Exceptional (670+ to 740+): Time is the primary driver at this stage. Keep utilization below 10%, maintain your payment streak, keep old accounts open, and limit new credit applications.
For a full step-by-step guide to fixing your credit rating, see how to start fixing your credit.
How Renters Can Reach a Good Credit Rating Faster
Renters face a specific challenge: the credit system was built around debt instruments, and renting creates no debt. That means renters can have years of responsible financial behavior, paying thousands of dollars in rent on time every month, with nothing to show for it on their credit report. Not because you did anything wrong. Because the system was built to reward borrowers, not payers.
The fix is rent reporting. When you enroll in a service like Roots Growth, your on-time monthly rent payments are reported to credit bureaus as a positive credit account. Each payment improves the payment history component of your score, the factor that most directly determines whether your credit rating moves up.
For renters with no credit file or a thin file, adding rent reporting can generate the first entries needed to produce a scoreable credit file and the first steps toward a Good credit rating within 3 to 6 months.
Start Building Toward a Good Credit Rating
If you're a renter focused on moving up to the next credit rating tier, the fastest first move is turning the rent you're already paying into a credit-building event.
That's the idea behind Roots Growth. For $10 a month, members complete short financial education challenges, earn Investable Rewards™, and deploy those rewards into the Roots real estate fund, credit repair, home-purchase services, and other Growth Market partners. Rent reporting, credit monitoring, and Rooty, your AI Wealth Coach, are all part of the toolkit.
Start building with Roots Growth →
Frequently Asked Questions About Credit Ratings
What is a good credit rating?
A "Good" credit rating corresponds to a FICO score of 670 to 739. It means you're approved for most credit products at competitive interest rates.
Is a credit rating the same as a credit score?
Not exactly. A credit score is a specific three-digit number. A credit rating is the descriptive label (like Good, Fair, or Poor) that describes which range that score falls into. Both are based on the same underlying data in your credit report.
What credit rating do you need to rent an apartment?
Most landlords look for a credit score of 620 or above, which falls in the Fair range. In competitive markets, a Good rating (670+) gives you a meaningful advantage. Learn more in what landlords look for when screening renters.
How is a credit rating determined?
Your credit rating is determined by your credit score, which is calculated from five factors: payment history (35%), credit utilization (30%), length of credit history (15%), credit mix (10%), and new credit (10%).
How long does it take to improve your credit rating?
Moving from Fair to Good typically takes 3 to 12 months of consistent positive behavior. Moving from Poor to Good takes 12 to 24 months. See how long it takes to build credit from scratch.
Can rent reporting improve your credit rating?
Yes. Rent reporting adds positive payment history (the most heavily weighted factor in your score) every month. Roots Growth reports your rent to credit bureaus as part of its toolkit. Learn more in does paying rent build credit.
About Roots Growth
Roots Growth is a micro-learning platform that helps renters turn financial education into actual wealth. When users complete short challenges they earn reward points that can be directly invested into real estate or used toward home-buying services. Roots Growth also has powerful credit-building tools, like rent reporting and real time credit monitoring. Ready to grow? Join the 29,500+ investors already building wealth today at investwithroots.com.
Disclosure: This content is for informational purposes only and does not constitute financial or legal advice.
Last Updated: April 2026
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