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What Is A Good FICO Credit Score? FICO stands for Fair Isaac Corporation. This company does data analysis and "decision management" for the world. Since the FICO scoring model, which they created, is used to convert your credit report into a score, they’re one of the three companies you’ll have to go to if your credit score has dropped. Since this is also the same scoring system used by Experian, one of the other of the three credit-reporting companies in the United States, it’s important to understand the scale and what it means. Remember that there are two other companies who generate consumer credit reports besides FICO… Equifax and TransUnion, each of which use a different scoring model to convert their reports into scores. However, since Equifax is now using the FICO system as well, it’s important to understand the system. However, TransUnion doesn’t use it. 
When you hear somebody refer to a “Good FICO score” they’re talking about the score produced through the FICO scoring model. So, the FICO score is the one most commonly used by mortgage lenders. Since most lenders also consider other scores, this is why you will see offers for "3-in-1" credit reports and scores. In this way you are being offered access to all three of your reports and scores. Having a good FICO score will help you qualify for a home loan, because it's the number most commonly used by mortgage lenders in the U.S. So, what is a good FICO score in the current economy? Because we’re currently in an economic crisis, the definition of "good" has risen. Now-a-days you’ll need to have a higher credit score if you want to qualify for the best interest rates on a mortgage. Since the FICO range goes from 300 to 850, a good credit score is one that allows you to both qualify for a mortgage loan and get a decent interest rate on that loan. However, there’s there's a lot of flux in the mortgage industry right. A couple of years ago, you might have qualified for the lowest interest rates on a mortgage loan with a FICO score of 650 or above; today, however, that’s no longer the case. In the current economy you will probably need a FICO score above 750 to qualify for the best rates on a loan. It is true that you might get approved for a loan with a score between 650 and 750, but you won't get the lowest rates. You'll be paying a bigger mortgage payment each month. Thus, if you can boost yourself up above 750 before applying for a mortgage, you'll be in much better shape. So a good FICO score in the current economy would be 700 or above. If your score is above that, it should allow you to get financing for a home. 720 or above would even be better; and if you can clear the 750 FICO range you're in great shape because you'll qualify for the best interest rates a mortgage lender has to offer. Get Your 3 Free Credit Scores For $0 |
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