A good credit score chart can help display how you compare amongst your peers.
And a detailed overview of this type is only available thanks to FICO.
In the past, before FICO came along, lenders used their own scorecards to judge a borrowers ability to keep up with payments in a timely manner.
This scorecard varied from one lender to the next and so wasn’t comprehensive as it is now.
In the late 1980’s, the Fair Isaac Corporation (FICO) created the first general purpose credit scoring system.
This has been adopted by all the leading credit reporting agencies.
Credit Score Chart
Essentially, a credit score is a number that’s been calculated by FICO’s software which is used by all three credit bureaus: Experian, TransUnion and Equifax.
Each bureau places a particular weight on various factors so your credit score will differ from each agency.
Since FICO is most widely used by lenders (over 90 percent), the credit score chart below is based on FICO’s data and shows what percentage of the population fall into certain FICO score ranges.
(Click image to view larger version)
All data comes from FICO | Is 650 a Good Credit Score?
Types of credit scores
Despite FICO being the main provider, there still exist hundreds of credit scores that cater to specific industries.
In fact, FICO alone has 49 credit score versions that highlight a specific industry/segment. These include auto, mortgage, credit cards and even a personal finance score.
Different financial institutions use alternative scoring models to decide a borrower’s capability of abiding by the loan terms.
Here are a few popular score ranges:
Two Credit Scoring Systems
After FICO, VantageScore is another credit score range that is popular. This model is a result from a collaboration between the three credit reporting agencies.
What’s contained in your credit report?
Your report comes with your identification information, including your current and previous addresses.
You’ll also find your history of dealing with credit such as the payments you’ve previously made for your student, mortgage or car loan, and the credit cards in your name.
Federal law permits you to view your credit report from each agency for free once per year.
Here’s a look at delinquency rates based on credit score:
(Click on image to view larger version.)
So, how is your FICO credit score determined?
Your FICO score is weighted based on five categories. You can track your FICO credit score and improve in the areas that are weakest:
- Payment History: 35%
- Credit Utilization: 30%
- Length of Credit History: 15%
- Credit Mix: 10%
- New Credit Applications: 10%
What is the Average Credit Score?
The average credit score has typically been in the fair category over the last few years. However, it’s been gradually rising which can indicate an improving economy.
(All data comes from FICO | Is 650 a Good Credit Score?)
What is considered to be an excellent credit score?
To have an excellent credit score you’ll need at least a score of 760. For you to fall into this category, you must have:
1) no bankruptcies
2) no negative marks or any collection accounts.
The main reason why everyone strives to reach this level is that you get qualified for the best rates available.
However, with anything above 700, you become eligible for relatively good rates on credit card or loans.
Below you’ll find a credit score chart depicting the percentage of certain age groups with credit and which age group achieves FICO scores 760 or above:
(Click on image to view larger version)
What’s considered a bad credit score?
On the other hand, anything below 620 is considered to be a bad score. It could mean that you:
1) Dealt with bankruptcy
2) Have many late payments or collection accounts
3) Have excessive amounts of debt
With this kind of credit score, it’s difficult for you to qualify for any major purchases such as a mortgage.
To achieve a sound credit score, you’ll need to pay all your bills on time, keep a modest balance (preferably a third of your credit limit), pay off your balances every month and establish a strong credit history. Most importantly, it’s imperative you stay updated with your reports.
Mortgage and Auto Interest Rates based on Credit Score
The tables below display the average rates on mortgages and auto loans based on credit score. These rates will fluctuate throughout the week (Mon – Fri), so be sure to call the bank or your broker for the latest values. These are just for reference:
Fixed Mortgage Rates
Auto Loan Rates
(All APR data comes from Informa Research Services, Inc which gathers averages from thousands of financial lenders)
The benefits of having good credit
An excellent credit score has many benefits that include:
- Increased negotiating power
- Increased borrowing limits
- Appealing interest rates
Your credit score plays a vital role in your financial endeavors. Staying up-to-date with it and maintaining a good score is paramount. Be sure to check back for an updated credit score chart on this website.