Your credit score is the key to financial tools like credit cards, mortgages and auto loans. A good score (FICO Score of 670 to 739 or higher) can mean approval and desirable rates, while bad credit (FICO Score 580 or below) can make approval difficult or mean a higher cost of borrowing.
The average FICO Score is 714, according to the fall 2026 edition of the FICO® Score Credit Insights report, which analyzed Harris Poll data from July 20-22, 2026.
That's unchanged since October, but represents a one-point decline from July 2025. Delinquent student loan payments are a leading factor, according to FICO, whose credit score algorithms are used in 90% of lending decisions in the U.S.
While still considered a good credit score, 714 is a bit shy of the record 718 reached in April 2023.
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The average credit score
What is a credit score?
Introduced in 1989, the FICO Score is a three-digit figure that indicates to lenders how likely you are to repay your debt in full and on time. It's generated based on a variety of criteria:
Payment history (35%): This accounts for how you've made payments on time and is the largest factor in calculating your credit score.
Credit utilization (30%): Your credit utilization is the amount of credit you're using versus your total credit limit across all accounts. It's the second largest factor in determining your score.
Length of credit history (15%): This looks at the average age of your accounts. Older accounts signal you have more experience handling credit.
New credit (10%): This tracks recent credit applications and new accounts. Opening many accounts quickly can temporarily lower your score.
Credit mix (10%): Lenders want to see that you've handled different types of credit, including credit cards and personal loans.
While FICO is the industry standard, VantageScore is another credit score model some lenders use.
The average credit score
FICO reported that the average credit score in July 2026 was 714. While 850 is a perfect score, 714 is still considered "good" for both FICO and VantageScore.
A 714 would qualify you for a prime car loan interest rate. It's well above the 620 needed for a conventional mortgage, but shy of the 760 that would get you the best rates for a home loan.
FICO score ranges
Excellent: 800 to 850
Very good: 740 to 799
Good: 670 to 739
Fair: 580 to 669
Poor: 300 to 579
VantageScore ranges
Excellent: 781 to 850
Good: 661 to 780
Fair: 601 to 660
Poor: 500 to 600
Very poor: 300 to 499
Government stimulus programs during the COVID-19 pandemic helped buoy credit scores, as did an inability to travel and purchase luxury goods. Scores have declined in recent years, however, as interest rates have risen and more consumers have fallen behind on their payments. The end of the moratorium on student loan payments is another contributing factor.
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How to improve your credit score
1. Pay down revolving lines of credit
How well you make on-time payments is the biggest factor in your credit score, and paying your credit card bills on time is the fastest and easiest way to raise your score. Not only does it show a positive payment history, but it lowers your credit utilization ratio, too.
2. Increase your credit limit
Your credit utilization ratio is the amount you owe across your accounts compared to your total available credit, expressed as a percentage. Paying down your bills is the best way to lower your ratio, but you can also ask your credit card company for a limit increase. The catch is, you can't tap that additional credit or you'll just slide deeper into debt.
3. Avoid opening new lines of credit
How often you apply for and open new accounts affects your credit score, as well. Each application requires the issuer to conduct a hard credit inquiry, which can temporarily lower your score by several points.
4. Check your credit report for errors
Review your credit reports with all three credit bureaus for any errors that could be negatively impacting you. You can get free copies at AnnualCreditReport.com or by calling 877-322-8228.
About 25% of Americans have at least one error on their credit reports, according to the Federal Trade Commission. Common mistakes include:
- Accounts or loans listed as unpaid that have been successfully settled
- Individual loans listed multiple times
- Debts that are incorrectly reported in collections
- Fraudulent accounts listed as a result of identity theft
- Incorrect current balance or credit limit
- Information from someone with a similar name or Social Security number
- Closed accounts reported as open
Disputing a credit report error may take more time and effort on your end, but it's worth it.
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How to check your credit
Most credit card issuers provide free credit score access to their cardholders, although they rarely offer information on both FICO and VantageScore from all three bureaus.
CreditWise from Capital One provides free FICO Score 8 from TransUnion, while Experian's free credit monitoring service delivers your Experian credit report and the FICO score it generates.
For the most thorough data, sign up for myFICO, a paid subscription gives you access to your FICO scores, including specialized versions used for mortgages, auto loans and credit cards across the three bureaus.
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Credit scoring model used
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For both FICO and VantageScore scores from all three agencies, you'll need to enroll in a credit monitoring service or identity theft protection service, which usually also comes with dark web monitoring, password managers and VPN generators.
You can also subscribe to a credit repair service, which will work to correct any mistakes or fraudulent items on your credit report, thereby raising your score.
Credit score FAQs
What is considered a good credit score?
A FICO Score of 670 or above is generally considered good. Scores of 740 or higher are considered very good to exceptional.
How can I check my credit score?
Your credit score may vary depending on which credit bureau is used to calculate your score. You can get a free FICO 8 Score based on your TransUnion report from CreditWise from Capital One and a your Experian FICO 8 Score by enrolling in Experian's free credit monitoring service. A paid myFICO subscription gives you access to your FICO scores from all three bureaus, plus specialized scores used for mortgages, auto loans and more.
How can I improve my credit score?
On-time payments account for 35% of your credit score, so making credit card and loan payments on time and in full is the best way to raise your score. If money is tight, you can try requesting a credit limit increase from your credit card issuer. It's free, fast and will automatically lower your credit utilization ratio which accounts for 30% of your score.
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