We all know how important FICO scores are so here are some basics to enhance your FICO knowledge.
Good borrower credit scores help make it possible to qualify at better rates. This is how FICO Scores are weighted and structured:
35% by Payment History
30% by Balances Owed
15% by Length of Credit History
10% by New Credit
10% by Types of Credit in Use
And the overall calculated ranges:
720 - 850 Excellent, A-paper credit, the "good-guy" rates available
680 - 719 Good, not much of a compromise on rates
620 - 679 OK or Fair, clearly in range for FHA consideration
580 - 619 Low, bottom of the range for FHA consideration, "alternate credit" comes heavily into play
500 - 579 Poor, truly nothing can be done without credit rehabilitation
Good borrower credit scores help make it possible to qualify at better rates. This is how FICO Scores are weighted and structured:
35% by Payment History
30% by Balances Owed
15% by Length of Credit History
10% by New Credit
10% by Types of Credit in Use
And the overall calculated ranges:
720 - 850 Excellent, A-paper credit, the "good-guy" rates available
680 - 719 Good, not much of a compromise on rates
620 - 679 OK or Fair, clearly in range for FHA consideration
580 - 619 Low, bottom of the range for FHA consideration, "alternate credit" comes heavily into play
500 - 579 Poor, truly nothing can be done without credit rehabilitation
Just for your information, FICO stands for Fair Isaac Corporation, wtih Fair and Isaac being the last names of the two men who created the corporation as well as the scoring scenario.
If you would like to discuss your FICO score or other real estate mor mortgage questions, please contact us!
If you would like to discuss your FICO score or other real estate mor mortgage questions, please contact us!
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