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What's Considered a Bad Credit Score?

4 min read

Last Updated: February 5, 2025

Table of contents

Key Takeaways

FICO and VantageScore® are the two major credit scoring models. They calculate credit scores differently, but both offer an idea of your creditworthiness. Neither has a “bad” range.
A low credit score may make it difficult to qualify for the financial products you want or get favorable rates.
There are easy things you can do to improve your credit score, like making on-time payments and reducing your credit debt.

Your credit score plays a major role in your financial life. A credit bureau calculates your score using a credit scoring model (also called an algorithm) that puts a numerical value to your credit history. Each credit bureau and credit scoring model will assess risk differently, so you might see different numbers and wonder what they mean.

Lenders look at your credit score to determine your creditworthiness.

A low credit score may make opening a new credit card account, buying a home, taking out a personal loan, or even renting an apartment more difficult. However, what qualifies as a “bad credit score” depends on your creditor and needs.

Credit score ranges

Lenders use credit scores to predict how likely you are to repay bills on time. Credit score ranges streamline the application and approval process. Fair Isaac Corporation (FICO)¹ and VantageScore^® are two well-known credit scoring agencies. While both companies use a scoring range of 300 to 850, they calculate and categorize scores differently. Both scoring systems use five ranges, but those ranges differ slightly.

FICO^® Score Ranges		VantageScore^® 4.0 Ranges
Exceptional	800 to 850	Excellent	781 to 850
Very good	740 to 799	Good	661 to 780
Good	670 to 739	Fair	601 to 660
Fair	580 to 669	Poor	500 to 600
Poor	300 to 579	Very poor	300 to 499

As of October 2024, FICO^® lists the average credit score as 717.

Are there good and bad credit score ranges?

Both FICO and VantageScore^® have “good” credit score ranges. FICO^® Scores also have “very good” and “exceptional” ranges, while VantageScore^® calls its highest range “excellent”.

However, you’ll notice neither scoring agency has a “bad” credit score range. Lenders may require different credit score ranges for each product, so what credit score will qualify you can vary.

A credit score in the “fair” or “poor” ranges on the FICO^® Score scale or the “poor” or “very poor” on the VantageScore^® scale may indicate you’re a credit risk to a lender and make it more difficult to reach your financial goals.

Is it bad to check your credit score?

The simple answer is no. It’s a common misconception that checking your credit score hurts your credit; it doesn’t. In fact, it’s good to check your credit to identify increases or decreases in your score.

When you’re aware of changes in your credit score, you might make changes as necessary to improve your credit. Staying on top of your credit score and credit report could help you maintain your financial well-being, especially if you plan to make any significant life changes soon.

What's a bad credit score for you?

While lenders prefer good credit scores, what qualifies as a bad credit score depends on your needs and situation. Certain credit cards, mortgages, and loans, have stricter score requirements than others and you might need excellent credit to get them. Likewise, some landlords may require specific credit scores for certain units.

The credit scoring model each company uses to check your credit may also affect what qualifies as a bad credit score for you. For example, a 662 credit score would be “fair” under the FICO^® Score model but “good” under the VantageScore^® model.

Lenders may approve you for new credit even if you have a lower credit score. However, you may receive terms with higher interest rates or additional fees. A low credit score may also prevent you from qualifying for certain rewards credit cards.

Can you help a bad credit score?

Yes, you can help a low credit score. If your score isn’t as high as you’d like it to be, a few changes could help:

Pay your credit card bills on time each month and pay the required minimum payment. When possible, pay more than the minimum.
Keep your credit utilization ratio as low as possible. Your credit utilization ratio is the percentage of available credit you’re using. You lower that ratio by paying down your credit card balance or increasing your credit limits.
Take out a new credit card. A new card could increase your credit limit and improve your credit mix. A credit card company may even offer a specific credit card for low credit scores.

Did you know?

If you have poor credit, it may be difficult to get a new credit card. That’s where a secured credit card may be able to help. See if a Discover it^® Secured Credit Card is right for you.

Learn More

While “bad credit” may not have one universal meaning, a low credit score can make it more challenging to meet your financial goals. If you can keep your score in the higher credit score ranges of FICO^® Score and VantageScore^® models, you may find it easier to get approval for the credit you need. If your score slips below those ranges, don’t panic. You could help it over time by taking a few simple steps.