Poor Credit (300-579)

A credit score between 300 and 579 is considered poor. If your credit score falls into this range, lenders view you as a high-risk borrower. This perception is based on the likelihood that you may have missed payments, defaulted on loans, or carried a high level of debt relative to your income. As a result, securing loans, credit cards, or even rental housing can be difficult. When you do manage to qualify for credit, it’s often accompanied by high interest rates, limited borrowing amounts, and less favorable terms.

For those with poor credit, rebuilding your score is critical, especially if you hope to qualify for a mortgage or car loan in the future. A common issue I see as a debt consultant is individuals who fall into this range due to missed payments or high credit card balances. Improving a poor credit score is possible with patience and commitment. The key lies in consistently paying off your debt, reducing your credit utilization ratio (how much of your available credit you are using), and avoiding late payments.

Steps to Improve a Poor Credit Score

Recovering from a poor credit score starts with addressing the root causes. Creating a realistic budget to avoid missed payments and making a concerted effort to pay down debts is essential. I often recommend clients consider a secured credit card or credit-builder loan as a way to demonstrate responsible credit usage and slowly rebuild their credit profile. Over time, this disciplined approach will lead to gradual improvements in your score.

Fair Credit (580-669)

A fair credit score falls between 580 and 669, which is a step up from the poor range but still not ideal. Borrowers with a fair score may be approved for loans and credit cards, but they will likely face higher interest rates than those with good or excellent credit. This score range often reflects a mix of responsible credit management alongside some financial missteps, such as occasional missed payments or a higher-than-ideal credit utilization ratio.

In my role as a mortgage loan officer, I often see clients in this range who are just on the cusp of becoming strong candidates for better loan terms. They may have had a few credit challenges in the past, such as a temporary job loss or a medical emergency that impacted their ability to make timely payments. However, with proper guidance and financial management, individuals with fair credit can gradually improve their score and increase their chances of securing favorable loan terms.

How to Move from Fair to Good Credit

If you're in the fair credit range, you’re not far from qualifying for better rates and terms, but there is still work to do. The goal here is to stabilize your credit habits. Start by paying all bills on time and paying more than the minimum on any outstanding debts. If you have high balances on credit cards, aim to bring your credit utilization down to 30% or lower. As a debt consultant, I also advise my clients to avoid applying for new credit unless absolutely necessary, as each inquiry can temporarily lower your score. With steady improvement, you can move into the good credit range within months to a couple of years.

Good Credit (670-739)



A good credit score, between 670 and 739, places you in a much stronger position when it comes to borrowing. Lenders see you as a reliable borrower, and you're more likely to qualify for loans with reasonable interest rates and terms. This is the range where many people feel comfortable applying for mortgages, auto loans, and credit cards. While the interest rates might not be as low as those offered to individuals with excellent credit, you're unlikely to encounter the prohibitive costs that come with having fair or poor credit.

Most of the clients I work with in this range have a track record of responsible credit management but may still carry some debt or have had minor issues with missed payments in the past. They’re generally able to qualify for conventional loans with decent terms, although they could potentially save thousands of dollars over the life of a loan by pushing their score into the next tier.

Strategies to Move into Excellent Credit

For borrowers with a good credit score, the focus should be on fine-tuning credit habits. Pay off any remaining balances on high-interest credit cards and avoid carrying large debts. Consistently paying off balances in full each month will help further boost your score. Maintaining long-standing accounts and limiting new credit applications can also strengthen your credit profile, making it easier to transition into the excellent credit range.

Very Good Credit (740-799)

A credit score between 740 and 799 is considered very good, signaling to lenders that you’re an exceptional borrower. People in this range often receive the most competitive interest rates, higher credit limits, and more favorable loan terms. From my perspective as a mortgage loan officer, this score range opens doors to the best mortgage products available, and you’ll have your pick of low-interest loans.

For individuals in this range, managing credit is typically a matter of maintaining current behaviors. They’ve likely demonstrated a long history of on-time payments, low credit utilization, and responsible credit management. However, even people with very good credit scores should continue monitoring their credit reports for errors and ensuring they maintain healthy financial habits.

 Maintaining a Very Good Credit Score

If you’ve reached this level, your main goal is to maintain consistency. Keep making timely payments, avoid unnecessary debt, and monitor your credit report regularly for inaccuracies that could damage your score. By doing so, you’ll not only protect your excellent borrowing status but also potentially move into the highest credit tier: exceptional.

Exceptional Credit (800-850)

An exceptional credit score, between 800 and 850, places you in the top tier of borrowers. People in this range enjoy the lowest interest rates, highest credit limits, and most favorable terms across the board. This score reflects years of responsible credit management, minimal debt, and an impeccable payment history. Mortgage lenders view borrowers with exceptional credit as virtually risk-free, which leads to the best possible loan products and terms.

As a debt consultant, I remind clients that reaching this level requires long-term commitment and dedication. Maintaining an exceptional score involves consistently paying off debts in full, keeping credit utilization as low as possible, and avoiding new debt unless absolutely necessary. Even a single missed payment could bring a score down from this rarefied range.

How to Keep an Exceptional Credit Score

If you’ve achieved an exceptional credit score, your focus should be on maintaining your hard-earned status. Keep paying all bills on time, regularly check your credit report for any discrepancies, and continue managing debt responsibly. Exceptional credit is a powerful financial tool that can save you thousands of dollars over the life of a loan, so it’s worth protecting with vigilance and discipline.

Learn More About Credit with Sally Bernard

Understanding the five levels of credit scores is crucial to making informed financial decisions. Whether you’re starting with a poor credit score or maintaining an exceptional one, knowing where you stand and how to improve is essential to achieving your financial goals. With careful management and a long-term commitment to responsible credit use, you can climb the credit score ladder and open the door to more financial opportunities. If you have questions about your credit score and how it impacts your ability to secure a mortgage, feel free to reach out—I’m here to help guide you on your path to financial success.