Credit 101: Part 3 – Understanding Credit Score Ranges

Credit 101 part 3 credit score

The Differences in Credit Score Ranges

As we previously mentioned in Part 1 and Part 2 of our Credit 101 series, not all credit scores are created equal.  What does that mean?  The credit score you receive from Equifax will be different than the one you receive from Experian or TransUnion.  Then there is your FICO (Fair Isaac Corporation) score.  This is the most commonly used credit report by lenders and since they have their own “scoring system,” it will be different from the other three.

Just as your score will be different in each credit report, the agencies each have different score ranges:

Credit Report Score Range How to Obtain Notes
FICO 300-850 www.myfico.com
  • Must pay fee to obtain score
  • Since most lenders use this score, it is recommended to obtain this report
  • Keeping and maintaining a FICO score of 725 or better is a good goal to set for yourself
Experian 330-830 www.experian.com
  • Must pay fee to obtain score
Equifax 280-850 www.equifax.com
Transunion 300-850 www.transunion.com
Vantage 501-990 www.experian.com/consumer-products/vantage-score
  • Created by the three major bureaus to compete with FICO
  • You may have heard Clark Howard refer to this as a FAKO (fake-o) score, since it will lead you to believe your true score is higher than it really is.

 

For more information or to reach a Peach State loan specialist please contact us.

Credit 101, Part 2

credit score diceWhat’s in a Credit Score

Now that you know how to obtain your credit report, from our Credit 101 Part 1 Article it’s important to understand how the credit reporting agencies determine your credit score.  According to www.myfico.com, your score is calculated from several different pieces of credit data in your report.  This data is grouped into five categories, each of which is weighed differently.  The five categories break down as follows:

Pie

 

Continue Reading…