Everyone knows that having a good credit score is the key to getting the credit you need when you need it, but what exactly is a good credit score in the first place?

There are tons of articles littering the web breaking down everything you need to do to improve your credit score, but none of that is helpful if you don’t have a solid working knowledge of where you fall on the range of possible scores.

If your current score is good enough, you might not need to worry in the first place. But if your score is way down on the list, you should be more realistic about your expectations.

The average FICO score is 716. Knowing where you stand relative to that is the first step in figuring out how good your credit is. With that in mind, let’s look at the commonly estimated ranges and conditions lenders associate with them.

800-850: Exceptional Credit

Any FICO score over 800 is considered “Exceptional Credit” and qualifies borrowers for just about anything they want at the best possible rates available.

If you are already in this range, you have nothing to worry about and can get the best possible terms regardless of your situation.

740-799: Very Good Credit

Borrowers that fall in the range from 740 to 799 are considered to have “Very Good Credit.”

These are also extremely valuable customers for most lenders, and anyone in this range can typically get close to the same options that are available to consumers in the top tier.

670-739: Good Credit

If your FICO score has you anywhere between 670 and 739, you fall into the “Good Credit” category. Anyone in this range can still work out a deal with most lenders, but you are not likely to qualify for the best rates like customers in the higher ranges.

Consumers in this range may also need to come up with higher down payments for mortgages or put in a little more work to demonstrate that they can afford the payment that comes with the loan.

580-669: Fair Credit

Consumers are considered to have “Fair Credit” when their FICO scores fall into the 580-669 range. This is not a good place to be, but it is not impossible for someone in this range to get a loan.

To pull off a mortgage with a credit score in this range, the borrower will need to come up with a significant down payment, have more documentation than the average borrower, and have additional mortgage insurance.

300-579: Poor Credit

If your FICO score falls below 580, it is considered “Poor Credit” by most lenders. This is not a fun place to find yourself.

Consumers in this category will need help finding a lender willing to work with them at all, and if they do, they will certainly be signing up for higher rates and may need a cosigner as well. Even that may not be enough to get a deal done at this level.

Regardless of where you currently fall in the range of possible credit scores, there is no reason to think you can’t move up or down one or two levels much quicker than you think.

If you aren’t where you want to be, there are plenty of resources all over the internet to help you map out a plan to get there. The sooner you get started, the sooner you will get ahead.