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Credit Score Q & A

By: Financial Hotline
Summer 2026 (Vol. 44, No. 2)

Q: What is considered a good credit score?

A: A good credit score is generally 670 or higher on the FICO scale (the most widely used by lenders), with 740+ being very good and 800+ exceptional.

Credit Score Ranges (FICO, used by 90% of lenders):

  • Poor: 300-579
  • Fair: 580-669
  • Good: 670-739
  • Very Good: 740-799
  • Exceptional: 800-850

The U.S. average FICO score is around 713-715 (solidly 'good'). The VantageScore (used by some free monitoring tools and lenders) uses the same 300-850 range but labels tiers differently: Good/Prime: 661-780 and Excellent/ Superprime: 781-850. A score in the good range or better helps you qualify for better interest rates on loans, credit cards, mortgages, etc. (e.g., lower APRs on cars or homes). Scores below 670 often mean higher rates or denials.

Q: How can I improve my score?

A: Credit scores are based on factors like:

  • Payment history (35% of FICO)
  • Amounts owed / credit utilization (30%)
  • Length of credit history (15%)
  • New credit (10%)
  • Credit mix (10%)

Quickest wins (can show results in 30 days or less):

  • Pay all bills on time. Set up autopay or reminders to avoid late payments.
  • Keep balances below 30% of your limits (ideally under 10%). Pay down cards (especially before statement closing dates) or request limit increases. This can boost your score fast.
  • Check and fix errors. Get free weekly credit reports at AnnualCreditReport.com. Dispute inaccuracies (e.g., wrong accounts, outdated info) with the bureaus.

4. Longer-term strategies include:

  • Keep old accounts open to maintain a longer credit history.
  • Build a healthy mix of credit types (e.g., cards and installment loans) if needed, but don't open too many new accounts at once.
  • Consider becoming an authorized user on a trusted person's well-managed card or adding rent and utilities via services like Experian Boost.
  • If you have collections, negotiate pay-for-delete or settlements.

Q: I am working on clearing old debts Are there any new laws effecting credit scores that I need to know about?

A: Yes, here's what stands out:

  • Removal of Medical Debt from Credit Reports. In early 2025, the CFPB finalized a rule removing all medical debts from credit reports and banning their future inclusion. This affected around 15 million Americans and approximately $50 billion in debt, with average score boosts estimated around 20 points. This builds on earlier voluntary removals of paid/small medical debts by the bureaus.
  • Implementation of the Credit Score Competition Act (2018 Law Now Active). In April 2026, federal housing regulators began rolling out VantageScore 4.0 and preparing for FICO 10T in mortgage underwriting. This enforces competition beyond the long-dominant older FICO model.
  • BNPL Data Inclusion ? FICO is adding Buy Now, Pay Later data to certain scores, which can help responsible users by reflecting positive payment behavior (though it also adds visibility into that debt).

Proposed legislation we are are hoping to see become law includes bills to require lenders to consider consumer-authorized alternative data (rent, bank statements, etc.) for mortgages under the Equal Credit Opportunity Act. This targets the over 32 million people with thin or no credit files. There are also various Fair Chance in Housing Act amendments under discussion for accuracy, reseller rules, and expanding alternative data use.

These changes align with ongoing pushes for fairer, more inclusive credit evaluation. No sweeping new federal consumer protection laws passed in early 2026 specifically on scoring, but the medical debt ban and mortgage model competition deliver tangible benefits now.