5 Thoughts on What is considered a excellent credit score?
  1. Reply
    January 9, 2013 at 11:19 am

    From Money Magazine:
    Scores above 740 to 760 will get you the very best rates available.
    Scores higher than that are really unecessary.
    ^^^ This was a quote.

    Are you sure this was a Fico score?
    That’s impressive since only about 1% of the population can get scores in the 800’s.
    Hopefully you know not to fall for those 5/5’s or 5/1’s.
    Banks are still pushing these variable rate loans and scamming people.
    Interest rates are going up, and up and up in the next few years…

  2. Reply
    stan c
    January 9, 2013 at 11:30 am

    Excellent is between 750/840.

  3. Reply
    January 9, 2013 at 12:18 pm

    This should help you to understand how credit scores work..

    FICO scores from 300 to 850 and Vantage scores from 501 to 990.

    Here is the breakdown for both systems.

    Vantage Plus system scores from 501-990.

    FICO system scores from 300-850.
    Elite-740-& up
    Sub-prime-624-& under

    FICO is the only one that matters since it’s the one that all major lenders look at.

    So as you can see it depends on if your looking at a true FICO score or a Vantage plus score.

    As far as what makes up credit scores it’s the following;
    1. Payment history (longer the better) 35%
    2. Time in bureau (longer the better) 15%
    3. Types of credit (mix of credit cards & installment loans) 10%
    4. New credit (new accounts and inquiries) 10%
    5. Debt to credit ratio (lower the better) 30%

    And just so you will know Experian only uses Vantage, Equifax only uses FICO and Transunion uses both depending of which type of credit report is requested of which there are 3. The standard that people get from the Internet, the auto enhanced which only car dealers and lenders see and the factual which only mortgage people see. The last two are not available to the general public.

    To have the very best score and profile people need 3-4 credit card accounts (revolving) with balances below 30% of their credit limits and 2 cars, homes, boats, motorcycles, computers, furniture or personal accounts (installment) all with good long payment history’s.

    Add to this that unless you get your scores either direct from either Equifax or myfico.com your getting what’s called a FAKO score which makes it even worse because they all have their own system to calculate scores.

  4. Reply
    timothy p
    January 9, 2013 at 1:08 pm

    If those are FICO scores then they are excellent. If they are vantage scores then they are good (B). If they are any other scoring model then they are useless.

    Keep in mind that this isn’t the sole factor in your mortgage. You need to have a good down payment, loan to value ratio, debt to income ratio and employment history to qualify for the best rates.

  5. Reply
    January 9, 2013 at 1:11 pm

    Actually, new loan level prices adjustments were just rolled out by Fannie and Freddie, so you now need at least a 760 credit score and 25% down to not get pricing hits…

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