The base FICO scoring model periodically gets updated. Any time your FICO Score crosses over into a better range (as determined by the individual lender), there’s a chance you may unlock better financing offers. ![]() Plus, higher FICO Scores can often save you money in the form of lower interest rates and lower fees. With good FICO Scores, you have a better chance of qualifying for loans, credit cards, new apartment leases and more. In general, a FICO Score of 670 or above typically qualifies as “good.” If your FICO Score climbs to 740 or higher, it’s “very good.” And FICO Scores between 800-850 range are “exceptional.” Just as beauty is in the eye of the beholder, the interpretation of your FICO Score depends on who you ask. What does a good FICO Score mean?įICO Scores fall into five different ranges - poor, fair, good, very good and excellent. Some lenders use VantageScore credit scores as well, a competing credit score brand created by the three major credit reporting agencies. In the United States, 90% of top lenders use FICO Scores to evaluate new financing applications. The more likely you are to pay on time, the higher your FICO Score will be. They predict the likelihood that you’ll pay a credit obligation 90 days late or more during the next 24 months. This information is fed into an algorithm, which makes up your FICO Score.įICO Scores range from 300–850. ![]() Your credit reports include your borrowing history, including type of account (revolving or installment), amounts owed, payment history, open and closed dates and more. Your credit scores are derived from information lenders provide to the big three credit bureaus - Equifax, Experian and TransUnion - that is collected in your credit reports.
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