May 04, 2026
What Is a Good Credit Score vs. a Bad One and What's the Difference?
On the FICO scale, which runs from 300 to 850, a good credit score is 670 or above, and a bad credit score is generally anything below 580. The range between 580 and 669 is considered "Fair," meaning you can access some credit but at significantly higher rates. The practical difference between a good and bad score is not just a number, it is thousands of dollars in extra interest paid over a lifetime of loans, approvals you get denied, and apartments you cannot rent. For renters specifically, building credit through rent reporting is one of the most efficient ways to move from bad to good without taking on new debt.
Table of Contents
The Full Credit Score Range Explained
There are two main scoring models used in the United States: FICO and VantageScore. Both use a 300 to 850 scale. FICO is used by approximately 90% of top lenders, so it is the standard worth understanding.
Score Range | FICO Rating | What Lenders Think |
800-850 | Exceptional | You are extremely low risk, best rates available |
740-799 | Very Good | Trusted borrower, competitive rates on almost everything |
670-739 | Good | Solid credit, approved for most products at reasonable rates |
580-669 | Fair | Some risk, approved for some products, higher rates |
300-579 | Poor | High risk, limited options, often only secured products |
The line between "good" and "bad" in practical terms sits at around 670. Below that, your financial options narrow and your costs rise. Above it, the market increasingly works in your favor.
What a Bad Credit Score Actually Costs You
This is where the difference between a good and bad score becomes concrete. The numbers below are based on typical market rate differentials between score tiers as of 2026.
Auto loans
On a $25,000 car loan over 60 months:
Score of 720: approximately 6% APR, monthly payment around $483, total interest roughly $4,000
Score of 580: approximately 14% APR, monthly payment around $581, total interest roughly $9,900
Difference: nearly $6,000 in extra interest on the same car.
Mortgages
On a $300,000 30-year mortgage:
Score of 760: approximately 6.5% APR, total interest paid roughly $382,000
Score of 620: approximately 8% APR, total interest paid roughly $491,000
Difference: over $109,000 in extra interest on the same home.
Renting an apartment
Most landlords require a minimum score of 620. Below 620, your options narrow to private landlords, which limits your choice of location, unit quality, and price. Above 700, you gain a meaningful competitive advantage in approval and may qualify for a lower security deposit.
Learn more about what landlords look for when screening renters.
Credit cards
Below 580, you are typically limited to secured credit cards, which require a deposit and offer no rewards. Above 670, you qualify for unsecured cards with cash back, travel rewards, and higher limits.
What a Good Credit Score Unlocks
A score of 670 or above is not just a threshold, it is a shift in how the financial system treats you:
Lower interest rates on every borrowing product
Higher credit limits with less collateral
Faster apartment approvals without a co-signer
Lower or waived security deposits on utilities and phones
Access to premium rewards credit cards
Better car insurance rates in most states (insurers use credit as a pricing factor)
More negotiating leverage on loan terms
The compounding effect over a lifetime is significant. A person who maintains Good to Exceptional credit from their mid-20s onward will pay tens of thousands less in interest than someone who stays in the Fair or Poor range, without any difference in what they buy or borrow.
The Most Common Causes of a Bad Credit Score
Understanding what drives a score down is the first step to fixing it. The most common causes of a poor or fair credit score are:
Missed or late payments, payment history is 35% of your FICO score. Even one 30-day late payment can drop a score by 50 to 100 points. See why your credit score dropped and how to fix it.
High credit utilization, using more than 30% of your available credit limit drags your score down. Above 50%, the damage is significant. Learn how to lower your credit utilization.
Collections and charge-offs, unpaid debts sent to collections create major negative marks that stay on your report for seven years.
No credit history, a thin or nonexistent credit file means you start at a structural disadvantage. For renters, this is where rent reporting is particularly powerful.
Too many hard inquiries, applying for multiple credit products in a short window signals financial stress and lowers your score.
How to Move From Bad to Good Credit
The path from a poor or fair score to a good one is not complicated, but it requires consistency over time. The core actions are:
Make every payment on time from this point forward, set up autopay on every account to eliminate the risk of a missed payment
Lower your credit card balances, pay them down before your statement closing date to reduce your reported utilization; see how to improve your credit score in 30 days for the fastest moves
Add rent reporting, Roots Growth reports your monthly rent to all three credit bureaus for $10/month, adding consistent positive payment history starting with your very next rent check
Dispute any errors, pull your free report at AnnualCreditReport.com and correct anything inaccurate; see how to check your credit report for free
Be patient, moving from Poor to Good typically takes 12 to 24 months; from Fair to Good, 3 to 12 months
For a complete timeline, read how long it takes to build credit from scratch.
Ready to start moving the number?Join Roots Growth for $10/month →
Frequently Asked Questions About Good vs. Bad Credit Scores
Q: What is considered a bad credit score? A: On the FICO scale, a score below 580 is considered Poor, and 580 to 669 is considered Fair. Both ranges are typically associated with limited credit access and higher borrowing costs. Most financial experts consider anything below 670 to be a credit score worth actively working to improve.
Q: What is a good credit score number? A: A FICO score of 670 or above is generally considered Good. Scores of 740 or above are Very Good, and 800 or above are Exceptional. See what is a good credit score and how do you get one for the full breakdown.
Q: Can you get a loan with a bad credit score? A: Yes, but at significantly higher interest rates. Lenders who approve borrowers below 580 typically charge rates that can be two to three times higher than what a borrower with a good score would pay. In some cases, collateral or a co-signer is also required.
Q: How long does it take to go from bad credit to good credit? A: Moving from Poor (below 580) to Good (670+) typically takes 12 to 24 months of consistent on-time payments, lower utilization, and positive credit-building activity. Moving from Fair (580-669) to Good can take 3 to 12 months. See how to start fixing your credit for the step-by-step process.
Q: Does a bad credit score affect renting an apartment? A: Yes significantly. Most landlords require a minimum score of 620. Below that, you are limited largely to private landlords who evaluate applications individually. A score above 700 gives you a meaningful competitive advantage in most markets. See how to find an apartment with bad credit.
Q: What is the fastest way to improve a bad credit score? A: The fastest single action is paying down credit card balances to lower your utilization ratio, this can show results in one billing cycle. Disputing inaccurate negative items is another fast-moving action. Adding rent reporting starts building positive payment history immediately.
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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