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 Score 9 has been available to consumers since 2016. You can purchase it from FICO or possibly get it free from your credit card issuer, a lender or credit counselor through FICO's Open Access program, which allows lenders and credit counselors to share scores used in lending decisions.
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.
The credit score used in mortgage applications
While the FICO® 8 model is the most widely used scoring model for general lending decisions, banks use the following FICO scores when you apply for a mortgage: FICO® Score 2 (Experian) FICO® Score 5 (Equifax) FICO® Score 4 (TransUnion)
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.
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.
In FICO Score 9, paid collections are treated differently from unpaid collections. Specifically, the model places less emphasis on paid collections when calculating a credit score. This means that paid collections will have a smaller impact on a person's credit score than unpaid collections.
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.
FICO® Score 9 from Experian®
Simple access via Wells Fargo Online, to help you know where you stand.
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.
Paying (and repaying) fully and on time.
35% of your FICO credit score is influenced by your payment history, so it's imperative to pay back fully, and on or before the deadline. To make it easier for yourself, automate the payment of recurring bills and subscriptions, so you don't have to lift a finger.
Your credit scores typically update at least once a month. However, this may vary depending on your unique financial situation. Credit scores are calculated based on the information included in your credit reports. So, for your credit scores to update, the information in your credit reports must first change.
670 to 739: Good Credit Score
Lenders generally view those with credit scores of 670 and up as acceptable or lower-risk borrowers.
Your credit reports from Experian, TransUnion and Equifax could have different information because creditors can choose which bureau(s) they want to report to, as well as what they report and when. As a result, the same scoring model could give you different credit scores based on each of your three credit reports.
For over 25 years, FICO Scores have been the industry standard for determining a person's credit risk. Many lenders use FICO Scores to make faster, fairer, and more accurate lending decisions. Other credit scores can be very different from FICO Scores—sometimes by as much as 100 points!
This is because Credit Karma makes use of another credit scoring model compared to many lenders and possibly does not have access to all the data required to calculate your credit score.
FICO Score 9 makes it easier to improve your credit score by minimizing the effect of medical debt, allowing you to report on-time rent payments, and excluding fully paid collections debt. But it's still important to practice good credit habits to avoid decreasing your credit score.
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.
Your FICO score is a representation of your credit worthiness. FICO offers specific products and solutions for car dealers and auto loans. Their product is called Auto Score 8. As you can see here from FICO's promotional materials, Auto Score 8 is meant to help dealers, “Improve accuracy and speed of decision making.
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.
Lenders use it to help determine whether to approve someone for a loan or a mortgage and assess how much interest they might be charged. The FICO Score 8 can range from 300 to 850, with anything over 700 usually considered good credit health.
What is the highest credit score possible? To start off: No, it's not possible to have a 900 credit score in the United States. In some countries that use other models, like Canada, people could have a score of 900. The current scoring models in the U.S. have a maximum of 850.