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For better or worse, credit scores touch your life in more ways than you might think. The three national credit bureaus (Transunion, Equifax and Experian) each sell a score based on your behavior, and they all hired the same company to figure that important three-digit number. |
| The FICO score --- the credit score "most lenders use". |
| The FICO score grades more than just delinquency. It is also influenced by the proportion of loan balances to loan amounts, the number of consumer finance accounts, and even the number of credit cards shown as open on a report. |
What's in your FICO score? |
| Lots of different credit data make up your credit report and can be grouped into the five categories below. The larger the percentage - the more importance. |
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Your credit score may not come up exactly the same on each bureau because each bureau places a slightly different emphasis on different items.
And lenders look at many things when making a credit decision including your income, how long you have worked at your present job and the kind of credit you are requesting.
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What's a Good Credit Score? |
| The FICO score scale ranges from 300 to 850. Your score is like a ranking and obviously you want to rank as high as you can. Basically it's helps lenders predict behavior. The scale below shows what the odds are you will have a payment that is 90 days late or worse in the next two years. |
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credit score
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delinquency rate
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300 - 499
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87%
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500 - 549
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71%
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550 - 599
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51%
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600 - 649
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31%
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650 - 699
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15%
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700 - 749
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5%
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750 - 799
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2%
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800 - 850
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1%
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| Credit scores that are higher than 725 are considered good, while thos that fall below 600 are considered bad. If your score ranges between 750 - 850, that would be conisdered excellent, making loans easier to aquire. Those scores that fell between 660 - 749 are good, but would likely have conditions and be limited in amounts borrowed. And the lower you go...the harder to get any type of good deal. |
Find out what the score really looks at, how to read a report and how you can improve yours by going through the links above. |
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