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Author: Milligram46 Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308362  
Subject: Re: What is a "good" FICO score? Date: 4/20/2005 1:25 PM
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TransUnion doesn't use the standard "FICO" scoring.

True FICO (Fair Issac)

410 to 499: REALLY bad credit. You can't get a mortgage, credit card, car loan, nothing. This kind of credit score will cause you to pay more for auto insurance and could prevent you from getting a job. About 1% of America falls into this category.

500 to 579: Bad credit. You can get sub-prime car financing at criminal rates. Secured credit cards with criminal costs and conditions. You can get a sub-prime mortgage at near criminal rates but will need at least 20% cash down. Below 540 you'll need at least 50% down. This kind of credit score will cause you to pay more for auto insurance and could prevent you from getting a job.

580 to 599: Damaged credit. You MAY be able to get dealer financing on a car. You can get sub-prime financing on a car at reasonable rates, used car rates are still criminal. You can get a sub-prime mortgage including 80/20 financing. You can get secured credit cards. This kind of credit score will cause you to pay more for auto insurance and could prevent you from getting a job.

600 to 639: Shaky credit: You can do conventional auto financing through a dealer but not a bank in most cases. You can get a conventional mortgage up to 97% FHA/VA. You at the high end may be able to get a credit card with high interest and limited balance, but unsecured.

640 to 679: Average credit: You can do conventional auto financing just about anywhere, you still won't get the best rates. You can do conventional mortgages and do special mortgages like interest only or negative am (good Lord don't do negative am). You can get store credit cards, but still won't be able to get Discover, American Express, or the best deals.

680 to 719: Good credit: You can do conventional auto financing anywhere at the best rates. You can get a mortgage under almost any terms. You can get any store credit line and just about any credit card.

720 to 739: Very good credit: You might be able to eek out a better mortgage rate, easier to buy second property, maybe a better car loan rate through a bank or credit union, and credit card you want.

740 and above: Excellent credit: You are God. What would you like to buy today, sir/ma'am.

Most of America operates between 600 and 720. Less than 15% are below 600 and about 25% to 28% are above 720.

All of this assumes you don't have some oddity on your credit report. When I was a mortgage broker I once had a guy who had a 681 mid-score with a bankruptcy 22 months prior. Never in my life seen anything like it before. Without the bankruptcy this guy would have probably been an 800. Normally the sky would be the limit for him, no late pays, existing mortgage, car loan, credit cards, reasonable DTI but because he had the BK and it was only 22 months since discharge, there wasn't much I could do for him. So it is possible, but unusual, to have a "good" score using FICO but have something else on the report that cuts your legs off.

I hope this helps!
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