For base FICO® Scores, the credit score ranges are: Poor credit: 300 to 579. Fair credit: 580 to 669. Good credit: 670 to 739.
FICO is giving a score on the probability that you will pay a loan back. Different versions weigh certain aspects differently, for example version 9 is more friendly to No Scores because it is supposed to look at utility payments which isn't looked at in different versions.
While FICO 8 is the most widely used, newer versions of the score are available. For example, many lenders have upgraded to FICO 9. Unlike older versions, FICO 9 ignores paid third-party collections, places less weight on unpaid medical collections and factors in rental history when reported.
Credit bureaus will assess your credit history by collecting information from lenders and using it to assign you a credit rating from 1 to 9, where 1 means you pay your bills within 30 days and 9 means the lender wrote off your account or transferred it to a collection agency.
Making payments on time each month for credit cards, loans, and other bills can help establish a positive history and lead to a better FICO score. Paying late, on the other hand, can be damaging to your score. FICO scores also view collection accounts in a negative light.
07: The current account was 60 days past due date two times. 08: The current account was 60 days past due date three times. 09: The current account was 60 days past due date four or more times. 38: The current account was 90 days past due date.
Currently, FICO Scores 8 and 9 are widely used among lenders. However, some financial institutions may still use an older scoring model if it works better with their existing business practices. FICO Score 10 is the latest scoring model available to lenders, and its use is gradually expanding.
FICO® and VantageScore® are the two most popular credit scoring models today. FICO and VantageScore credit scores are equally reliable and accurate, based on the specific scoring model that's being used. Tools are available that allow you to check and monitor your credit score for free, with no impact to your credit.
Credit reports and other FICO Score versions will be updated based on the type of subscription you have – monthly for FICO® Basic or FICO® Premier and quarterly for FICO® Advanced. They will also be updated if you purchase additional credit reports that aren't a part of your subscription.
FICO Score 9 for Underserved Markets
Score 9 better supports your loan approval process by providing credit risk analysis on more consumer files. With enhanced capabilities to assess risk on consumers with limited credit history, Score 9 provides improved risk prediction on this growing percentage of the population.
Nor do they use FICO 9, which was introduced in 2014 and includes all kinds of nice changes like decreasing the impact of medical collections and including rent payment data. The most commonly used version of the FICO Score, for non-mortgage lending decisions, is FICO 8, which was released in 2009.
Your FICO® scores are just one type of credit score that lenders or creditors may use when determining whether they'll provide you a loan or credit card. While FICO® scores are commonly used by lenders to assess your credit risk, other credit scores can also give you a good idea of where you stand.
Versions 8 and 9 of FICO scores are similar, but FICO score 9 is generally considered the more forgiving of the two for a few reasons: With FICO 9, third-party collections no longer hurt your credit score once those debts are paid off. FICO 9 treats medical collections differently than other types of debt.
For other types of credit, such as personal loans, student loans and retail credit, you'll likely want to know your FICO® Score 8, which is the score most widely used by lenders.
Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian. Meanwhile, low-credit borrowers with scores of 600 or lower accounted for only 14% of auto loans.
FICO Score 9 is used by many lenders to determine a borrower's creditworthiness. This includes financial institutions such as banks, credit unions, mortgage companies, and other types of lenders such as auto loan providers and credit card issuers.
FICO® Score 9 from Experian®
Simple access via Wells Fargo Online, to help you know where you stand.
Conventional loans typically require a minimum credit score of 620, though some may require a score of 660 or higher. These loans aren't insured by a government agency and conform to certain standards set by the government-sponsored entities Fannie Mae and Freddie Mac.
FICO Score 9 is the second-latest version of the well-known credit scoring model. It was released for lender use in 2014 and is taking its place alongside its predecessor, the widely used FICO 8.
A rating of “9” means that you never pay your bills at all or that you have made a consumer debt repayment proposal to the lender. A letter will also appear in front of the number: for example, I2, O2, R2. The letter stands for the type of the credit you are using.