A credit score number is often called a FICO score, for Fair Isaac Corporation, the California company that developed the system upon which it is based. The score is supposed to distill all the information in your credit report, using a formula to calculate a single number that indicates your credit worthiness. It's designed to give creditors a fast and accurate prediction of the risk involved in providing you a loan.
According to Fair Isaac the median score is 723 whereas according to Experian (using the Fair Isaac risk model) the average credit score is 678. Each individual has three diifferent credit scores because the three credit agencies have their own, independent databases. As these databases are independent of each other, they may contain entirely different data. Many lenders check an applicant's score from each bureau and use the median score to determine the applicant's credit worthiness.
0-500 -Poor
500-700 -Avg
(500-580 -Bad
580-620 -Low
620-680 -Satisactory
680-700 -Good)
700+ -Excellent
Certain credit lenders may offer better rates and/or discounts if your score is over 720.
According to Fair Isaac the median score is 723 whereas according to Experian (using the Fair Isaac risk model) the average credit score is 678. Each individual has three diifferent credit scores because the three credit agencies have their own, independent databases. As these databases are independent of each other, they may contain entirely different data. Many lenders check an applicant's score from each bureau and use the median score to determine the applicant's credit worthiness.
0-500 -Poor
500-700 -Avg
(500-580 -Bad
580-620 -Low
620-680 -Satisactory
680-700 -Good)
700+ -Excellent
Certain credit lenders may offer better rates and/or discounts if your score is over 720.
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