According to FICO, five elements make up your credit score:

·         Payment history (35%)

·         Your credit utilization, or how much of your credit you’re actually using (30%)

·         Length of your credit history (15%)

·         Recently issued credit (10%)

·         Types of credit used (10%)

How do banks rank credit scores?

Finding the best credit card often means having to know where your credit scores fall on the spectrum of typical consumers. Over the past few years, lenders have ratcheted expectations skyward. Before the financial crisis of 2008, many banks considered a 680 FICO score “good.” Today, it’s just “fair.” Research from FICO, Experian and Informa Research reveals how banks look at credit scores today:

·         Excellent: 760-850 on FICO, 900-990 on VantageScore or an “A” letter grade.

·         Good: 700-759 on FICO, 800-899 on VantageScore or a “B” letter grade.

·         Fair: 620-699 on FICO, 700-799 on VantageScore or a “C” letter grade.

·         Poor: Below 620 on FICO, below 700 on VantageScore or a “D” or “F” letter grade.

You may also have heard a bank representative or a mortgage broker note that you’ve got a “thin credit file.” That just means your limited credit history makes it hard for a credit card issuer to figure out whether you’re a good risk. Building a track record with a student credit card or secured credit card usually improves your score over time.

A big thank you to Claudine Porikos of Group One mortgage for the above information.
You can reach Claudine at:
Group One Mortgage NMLS #53185
900 E Indiantown Rd Suite 110
Jupiter, Fl 33477
561-745-6075  fax  561-747-8409

For more information, visit our website or call us at (772) 888-2885.
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