Your credit score comes from an algorithm that the credit bureaus use or develop to gage how credit worthy you are (Also known as FICO®). The credit score is provided to lenders to give them an idea of how well you pay your bills, the odds that you will default and your overall credit performance. Many lenders depend on your credit score when considering loan approval. A low credit score can squeeze your chances for loan approval. Credit scores are important because they are used by almost all lenders and have a direct impact on your credit. The higher your credit score the better your chance of getting good loan rates and approvals. The lower the credit score the higher interest rates you will pay because your higher risk. You can get your credit score from the bureaus which some use their own formula and some use Fair Isaac®. Also many companies offer credit scoring but the numbers vary depending on which score you get. Generally it is a good idea to get the credit score that the bureaus use and not a credit score that a credit website may come up with. Where does your score fall?
| FICO Score | Odds of a Delinquent Acct. | RATING |
|---|
| 585 |
2.25 to 1 |
POOR CredIT |
| 600 |
4.5 to 1 |
POOR CredIT |
| 615 |
9 to 1 |
POOR CredIT |
| 630 |
18 to 1 |
POOR CredIT |
| 645 |
36 to 1 |
POOR CredIT |
| 660 |
72 to 1 |
POOR TO FAIR |
| 680 |
144 to 1 |
POOR TO FAIR |
| 700 |
288 to 1 |
FAIR TO GOOD |
| 760 |
576 to 1 |
GOOD TO EXCELLENT |
| 780 AND OVER |
EXCELLENT CredIT LOW DEFAULT RATE |
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