Maybe your banking app just showed you a 688. Maybe a leasing office asked for "good credit" and never said what that means. Either way, you may be wondering: is a 700+ credit score basically mandatory now?
It isn't. Here's where your number lands on the FICO Score, built by Fair Isaac Corporation (FICO), and what it means for a Federal Housing Administration (FHA) mortgage or a regular one.
The short answer: On the FICO Score most lenders use, a good credit score is 670 to 739 on a scale of 300 to 850, according to myFICO. Scores of 740 to 799 are very good, and 800 and up is exceptional. A 700 isn't a hard bar: an FHA mortgage needs a 580 for maximum financing, under rules from the U.S. Department of Housing and Urban Development (HUD).
Key takeaways
- On FICO's 300-to-850 scale, 670 to 739 is good. The national average was 714 in FICO's spring 2026 report, so a 700 sits just under it.
- For an FHA loan, 580 is the line for maximum financing. From 500 to 579, FHA limits the loan to 90% of the home's value.
- Fannie Mae dropped its 620 minimum for loans run through its automated system in November 2025.
- Paying on time (35%) and how much of your limits you use (30%) drive most of a FICO Score. Your income isn't part of it.
Credit score ranges: what counts as good
A good credit score is 670 to 739 on the FICO scale, which runs from 300 to 850. Here are FICO's own labels, as myFICO publishes them:
- Exceptional: 800 to 850
- Very good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: below 580
"There is no single minimum credit score required by all lenders," myFICO says, and each lender sets its own criteria.
Why your app and your lender show different numbers
"You do not have just "one" credit score," the Consumer Financial Protection Bureau (CFPB) says. Each score depends on the bureau's report and the model doing the math. Lenders most often use FICO Score 8, according to myFICO, so a free app's number won't always match the bank's.
Is 700 a good credit score?
Yes, though it's just under average. FICO's spring 2026 Credit Insights report put the national average at 714 on March 24, 2026, and a record 48.1% of consumers had scores of 750 or higher.
A mortgage example: where the cutoffs actually bite
For a mortgage, the published cutoffs sit well below 700, but one point can still change your down payment.
FHA loans: 580 is the line
HUD's rules, restated in Mortgagee Letter 2026-11 on Oct. 8, 2026, set three tiers:
- 580 or higher: "eligible for maximum financing," FHA's smallest down payment.
- 500 to 579: the loan is limited to 90% of the home's value.
- Below 500: not eligible for an FHA-insured loan.
Take Marisol, 31, a dental assistant in Allentown, Pennsylvania, shopping for a $300,000 home. She's an illustrative buyer, not a client.
- With a 579: FHA will insure at most $270,000, so she needs at least $30,000 down. That's our arithmetic, assuming the home appraises at the price and leaving out closing costs.
- With a 580: she qualifies for FHA's maximum financing, so she can put down less than that $30,000.
Starting Jan. 1, 2027, lenders can also use FICO 10T and VantageScore 4.0, but HUD says "the existing minimum credit score thresholds remain unchanged."
Conventional loans: the 620 floor is gone in Fannie Mae's system
Plenty of sites still say a regular mortgage needs a 620. In a November 2025 Selling Guide announcement, Fannie Mae removed that minimum for loans run through Desktop Underwriter, its automated system, starting Nov. 16, 2025. Fannie Mae says the system "will rely on its own comprehensive analysis of risk factors to determine eligibility." The current Selling Guide still sets a 620 minimum for manually underwritten fixed-rate loans and 640 for adjustable-rate ones.
What moves your score up or down
Two habits drive most of a FICO Score: paying on time and keeping balances low. Here's how myFICO weighs the five parts:
- Payment history, 35%. The biggest single factor.
- Amounts owed, 30%. How much of your available credit you're using. "Many experts recommend using less than 30 percent of your total credit limit," the CFPB says, and people with the highest scores often use less than 10%.
- Length of credit history, 15%. Older accounts in good standing can help.
- New credit, 10%. Several applications in a short stretch can count against you.
- Credit mix, 10%. A blend of cards and loans plays a small role.
If high balances are holding you back, our guide on how to pay off credit card debt compares the payoff methods. If an unpaid hospital or doctor's bill is the worry, our guide to whether medical debt affects your credit score explains when it can show up.
Three myths that keep coming up
- "I paid off my card and my score dropped." If you closed the card, its limit stopped counting. "Closing an existing card can increase your credit utilization ratio and lower your score," the CFPB says. Owe $1,500 across $10,000 of limits and you're at 15%. Close a $5,000 card and the same $1,500 is 30% (our arithmetic).
- "Checking my score will lower it." It won't. "Checking your own credit report is not an inquiry about new credit, so it has no effect on your score," the CFPB says.
- "A bigger paycheck means a better score." FICO doesn't count your salary at all. Still, in a Harris Poll for FICO of 2,059 adults in February 2026, 67% thought income affects credit scores or weren't sure.
Where to start this week
- Pull your free reports at AnnualCreditReport.com. The CFPB says you can see each of the three bureaus' reports online for free once a week. Dispute any error.
- Put every card and loan on autopay for at least the minimum.
- Find your utilization: total card balances divided by total limits. Work toward less than 30%.
- Think twice before closing an old card, especially before a loan application.
- Make room in your budget for bigger payments; our budget guide for beginners shows how.
If you would like help turning this into a plan, KAV Solutions offers a complimentary Financial Needs Analysis. A licensed insurance professional walks through your debts, your budget and your family's protection goals with you. The analysis is free and you never pay KAV a fee. If you choose to buy a policy, the insurer pays the professional a commission.
Frequently asked questions
What's the highest credit score you can have?
On base FICO Scores, the top is 850. Versions built for auto lenders and card issuers run from 250 to 900, according to myFICO. So a 900 exists, but only on those industry scores.
How long do late payments stay on your credit report?
Credit bureaus can generally report negative payment information for up to seven years, according to the CFPB, and positive information can stay longer. Bankruptcies can stay for up to ten years.
Do you need to carry a credit card balance to build a good score?
No. "You don't need to carry a balance on credit cards to get a good score," the CFPB says. Paying the full balance every month helps get you the best scores and keeps your interest costs as low as possible.
Can your credit affect what you pay for car or home insurance?
It can. An auto or homeowners insurer may look at your credit history to decide whether to issue or renew a policy and what to charge, the National Association of Insurance Commissioners (NAIC) says. If credit led to an adverse action, the insurer must tell you.
KAV Solutions is a women-led team of licensed insurance professionals based in Pennsylvania. This article is general education, not individualized financial, tax, or legal advice. Lender credit requirements vary and change.
