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What Is a Good Credit Score for a Mortgage? Each lender has their own criteria for credit scoring as well as their own thresholds for a good score vs. Related: Should You Worry About No Credit Score? A Good Credit Score Is In the Eye of the BeholderĪlthough the FICO and VantageScore charts above display a general idea of how lenders may interpret different credit score ranges, lenders and other companies can, and often do, differ in their opinions of creditworthiness.įor example, just because you’re considered to have a good credit score to an auto dealer doesn’t mean a mortgage lender would consider that same score to be a good credit risk. Choose a secured card that reports to all three credit bureaus for the best chance having your good payment behavior improve your credit standing. If you have poor or bad credit, building a credit history with a secured card can be a good way to start. Reviewing your credit reports can help you spot any errors that may be having a negative impact on your score so you can take steps to correct them.

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You can check your credit reports from each of the three credit bureaus once a year for free through (Note that through April 2021, you can check it for free weekly). If possible, aim for 30% or less overall and on individual credit cards. For example, if you have a $10,000 limit and debt of $5,000, you’re utilizing 50% of your available credit. Credit utilization is measured by how much of your credit limit you use. Late and missed payments are the single biggest factor affecting your score.

Pay your bills on time every single month.

If you have an average credit score or worse, it’s worth taking steps to improve your score over time. Just like FICO Scores, the higher your credit score on the VantageScore scale, the lower the risk you represent to lenders. VantageScores use a 300 to 850 credit score range. Although FICO Scores are the most popular choice among lenders, VantageScore credit scores deserve your attention too. Launched in 2003, VantageScore is a joint venture between the three major credit reporting agencies-Equifax, TransUnion and Experian. Related: FICO Score Facts You Probably Didn’t Know VantageScore Credit Score Ranges The higher your score, the lower the risk you represent to anyone who lends you money. They help lenders predict the risk of a borrower defaulting on a loan.

Regardless of the range, FICO Scores serve the same purpose. Auto FICO scores, for example, range from 250 to 900. There are also industry-specific FICO scoring models that use a different scale.

A good credit score is pretty similar between FICO and VantageScore scoring models with a few key differences: FICO Score RangesįICO is the oldest and most widely used credit score brand and uses a scoring range of 300 to 850. In the United States, there are two popular credit score brands that compete in the lending marketplace: FICO and VantageScore.