For example, if you check your free credit score online or sign up for a credit monitoring service, there’s a good chance you’ll be viewing some version of a VantageScore. VantageScore credit scores are more dominant in the consumer credit score marketplace – the landscape of options for consumers to check their own credit scores. In fact, FICO is so well known that people often refer to a “FICO Score” and a “credit score” as if they were one and the same (kind of like how people will call a tissue a Kleenex). According to FICO, its scores are used in 90% of U.S. In the present lending environment, FICO is king. Ultimately, it’s up to each lender to choose which credit scoring brand it prefers. These two companies develop the scoring software which most lenders use to predict the risk of doing business with you. The two most common brands of credit scores used by lenders in the United States are created by Fair Isaac Corporation (also called FICO) and VantageScore Solutions. Just like multiple brands create mobile devices (think Apple and Samsung), there are multiple brands which create credit scores. However, it might help for you to think of a credit score like a tangible product you can touch, such as a mobile phone or tablet. Multiple brands of scoresĬredit scores are complex mathematical algorithms sold to lenders in the form of software. Different Kinds of ScoresĪs mentioned above, credit scores come in multiple brands, types (or categories), and generations. Generic credit scores are designed to predict the likelihood that you’ll become 90 days late on a credit obligation within the next 24 months. If your lender is using a generic score (300–850), here are two credit score range charts that provide insight into how those numbers fall on a scale of very poor, through average credit, and up to exceptional. Here’s the main point to remember: With any scoring model, the higher your score falls on the scale, the better. Still, deciphering that information can be complicated. You can ask your lender which specific credit report it will pull and which credit score it will use for your application. While reasonable efforts are made to maintain accurate information, the information is presented without warranty. Some articles may contain sponsored content, content about affiliated entities or content about clients in the network. Consumers should verify terms and conditions with the institution providing the products. We make every effort to provide up-to-date information however, we do not guarantee the accuracy of the information presented. Any opinions, analyses, reviews or recommendations expressed in our content are of the author alone, and have not been reviewed, approved or otherwise endorsed by the advertiser. When MoneyTips content contains a link to partner or sponsor affiliated content, we’ll clearly indicate where that happens. We are an authoritative source of accurate and relevant financial guidance. When you visit MoneyTips, we want you to know that you can trust what’s in front of you. Which credit report from which credit bureau (Equifax, TransUnion, or Experian) your score is based on.The range for the credit score the lender is using. The credit scoring model the lender is using (brand, type, and version).If you want to figure out what is considered an excellent credit score by a lender, you’ll need to know the following: When you apply for new credit, lenders use credit scores to predict your level of credit risk. And while that is certainly the most popular credit score range, it’s not the only possibility. Most people will tell you that credit scores range from 300–850. There are different brands of credit scores, different types of scores created by those brands for different purposes, and different generations of credit scores as well. Not only that, each credit reporting agency has a unique file of your credit accounts, each with the ability to generate a different credit score based upon your data. The reason there are so many credit scores available commercially is because scores come in many shapes and sizes. You have not one, not three, but actually hundreds of different credit scores based on your credit history. There’s no such thing as “the” credit score range. Keep reading for a breakdown that should be helpful. The answers to those questions, and many others dealing with credit score ranges, depend upon many different factors. What you might not understand clearly, however, is what “good credit” means in terms of the numbers.Īt what point does fair credit end and good credit begin? What score is classified as excellent credit? You already know that it’s important to earn good credit.
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