From my reading on these boards I would have thought 791 is pretty good, but according to Transunion it's not that great?So what is a "good" FICO score?Thanks!
So what is a "good" FICO score?791.Next!impolite
but according to Transunion it's not that great?Did you just pull your score from their website? I pulled DF's and he has over 700, but it said that his creditworthiness is "Poor".....Wtf? Is that becasue of all of the debt?
http://www.myfico.com/...has the range of what I would think is "very good" as 720 to 850. So I'm not sure what Transunion is smoking.impolite
Yes. I requested my free credit report, and though, "WTH, I'll go ahead and order the FICO score as well." It was 791, which had me thinking "whoo-hoo" until they said I would not get good rates, etc, etc. So I came here. =D
The CRAs have all developed their own credit models, based off FICO but with their own scales. FICO is based on a perfect score of 850. So figure out what the CRA's scale is, figure out what percent your score translates to, then figure out what the equivilent score out of 850 would be. If you are over 700 on the FICO scale, you are in pretty good shape.FuskieWho figures the CRAs decided to make it too complicated when they realized they could sell the score as a product...
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!
TransUnion doesn't use the standard "FICO" scoring.Then what do they do? Seriously.I remember when I was getting my mortgage, I pulled my own. My score was like 580 or something horrible like that (mess ups from medical collections).I talked to my broker, and she said she pulled it and it was like 620.And I still got a decent rate for my mortgage (probably bc DF was on the loan as well).How can they not use the real FICO scores?
To answer your question - Transunion uses it own proprietary scoring model which has a range of up to 900 or 950 I believe. If you purchased your score through Transunion - the score would be generated using their own model and is not a true FICO score. Transunion's model uses different variables, different scoring range etc. A 791 pulled through Transunion does not mean that you would have a 791on your Transunion report when pulled through the FICO technology. It will give you an idea of what your true FICO score may be – but it is only an estimate. Not the real deal. A real "FICO" score is a score generated by Fair Isaac (A little fun fact: FICO stands for Fair Isaac Company). If you purchased your FICO score through Fair Isaac (myfico.com) you can get a score against all three credit reports including Transunion. The range for the real FICO score is up to 850. As an FYI, 75%+ of lenders/credit card companies etc. use the Fair Isaac FICO score in making their credit decisions. The lender can use data from any of the three credit houses but they pull the score through Fair Isaac. My point being...when consumers purchase their individual score, I recommend that you pull it through myfico.com or experian.com (as they lease Fair Isaac's scoring technology) to make sure you are getting the score that the lender is using. Hope this helpsNT8Discloser that I work in the credit scoring industry
You asked: How can they not use the real FICO scores?Because we are a capitalistic society (wink). Transunion competes against Fair Isaac in the scoring market. In a cruel twist of irony, Transunion and Fair Isaac are also partners. If you pull your Transunion report through Fair Isaac for a score -- then you get a Transunion report that uses the real FICO score.
That is so frustrating! I am not spending $5.95 anymore to get my scores that aren't even accurate. Oh, well. Maybe next time I feel like coughing up the $5.95 our scores will be much better and I'll get it from the real FICO people.Thanks for the tips.
Still good to know - and good to look at the reports.
when I was getting my mortgage, I pulled my own. My score was like 580 or something horrible like that (mess ups from medical collections).I talked to my broker, and she said she pulled it and it was like 620.Two thoughts:First, there are different scoring models for different purposes. A score that is requested for a mortgage application will be different from the score obtained for a revolving credit-card application. Furthermore, some lenders have customized versions of the scoring model and would receive scores different from those given to any other lender. So your mortgage broker might have received a slightly different score from the one you received yourself even if all the data were the same.Second, 580 to 620 is not a huge change, although it is large enough to make a difference in loan eligibility and interest rate. Since creditors all report on different schedules, the data available can change from day to day.
791, which had me thinking "whoo-hoo" until they said I would not get good rates, etc, etc. If they actually said you would have trouble getting credit, I think that something was wrong with their system at the time.Or did they just tell you why the score is not higher? The CRA always lists reasons that the score is not higher, but if it is a relatively high score, these reasons sometimes make very little sense.
580 to 620 is not a huge changeIn the mortgage business, 580 to 620 is as wide as the Grand Canyon. The magic number for conventional FHA/VA financing is 600. Your sub-prime across the board in any scenario at 599. 600 is the magic number for A LOT - like dealer financing on a new car.If we were talking 680 to 720 or 540 to 580 you would be right - but the steps get really steep on the benefit curve (up or down) from 580 to 680. At 579, you've got huge problems, at 681 you can have just about anything you want. Outside of that spread you're 100% right, 40 points don't matter that much...
In the mortgage business, 580 to 620 is as wide as the Grand Canyon.I said that it would make a difference.My point was that small changes in the data being reported can produce that much difference in the score, depending what it is that changes and what else is on the report.TchrPSigning off yet another board because it is not worth replying where people are just looking for an argument
Lets look at what you wrote:Second, 580 to 620 is not a huge change, although it is large enough to make a difference in loan eligibility and interest rate. Since creditors all report on different schedules, the data available can change from day to day.Your evaluation as I noted in my reply is wrong, but with a different range would be completely right. 600 is a "magic number" as I stated in the mortgage business. A person with 599 is going to pay A LOT more in interest and have a lot less choices than a person with 600. That may seem crazy that just 1 point makes the difference, but that is how it is. I was a mortgage broker. The object of the Fool is to educate and entertain. Quite frankly, the difference between 580 and 620 could be the difference in getting a mortgage period, let alone what interest rate you pay. Unlike say the difference between 660 and 700 or even 640 and 680 - which is a good example of a situation where the person with the 680 will probably get about 1/8 to 1/4 point better rate than the person with the 640. A person with a 580 is going to have a hard time getting a mortgage, one point less and there are very few programs out there. A person with a 620 and no major blemishes otherwise could walk into any bank and do a conventional FHA/VA loan - that is as wide as the Grand Canyon.Cripes I was corrected on this board for something I got wrong, I went to the trouble of reporting my own post to pull down the bad advice. Think of this as a permanent archive for financial device. If someone came here and said they have a 580 midscore and they were thinking of buying a house, I'd tell 'em forget and clean up your credit first.I suggest you develop thicker skin.
In any case, thanks for these posts. I've been working on pulling up my score lately. It was 619 when I started, mainly due to inaccurate information. Its now 720, and goal is 750. Big leaps in a short time and it was nice to see what the actual benefits are, so thanks for your expertise and willingness to share.
Wow! Thanks for all that info. It looks like I'm in good shape then.Still doesn't negate the fact that I'm in debt and hating it, but it's good to know for future reference. ;)
This might be too little, too late...but I just pulled my 3-in-1 credit report, with a "free score based on TransUnion data," earlier today. The score was 763, and the high end of the scale they presented was 850.So now I'm completely confused. Not worried, just grateful that the debt I took on in the past year to start a business has not negatively affected my score... and confused, based on what you-all are saying. Oh well. This credit stuff seems to be strange and mysterious, despite all the so-called attempts at consumer education that the CC companies are sponsoring.SG
Did you just pull your score from their website? I pulled DF's and he has over 700, but it said that his creditworthiness is "Poor".....Wtf? Is that becasue of all of the debt?It's because TransUnion's score is not a FICO score. It is based on a somewhat different scale with a higher top score, thus 700+ scores are not nearly so good on their scoring system.None of the 3 credit bureaus use the true FICO score, as it is proprietary to FICO and they haven't given it to the other entities to use in the same exact form.
Signing off yet another board because it is not worth replying where people are just looking for an argument Please don't leave just because someone corrected you. Boards are better with more members. I don't believe anyone was trying to start an argument, just correcting for the OP. You posted based on what you knew.I think you'd also chime in if someone gave advice that was almost right.Please stay. :-)DizChick
Here's a quick, linear and dirty way to convert your wacky score from Wacky's credit bureau to the FICO score equivalent:your_FICO_score = 300 + 550*(your_Wacky_score - Wacky's_low_end)/(Wacky's_high_end - Wacky's_low_end)For example, if you have a Wacky score of 681 and it is a Plus score then:your_Wacky_score = 681Wacky's_low_end = 330Wacky's_high_end = 830so...your_FICO_score = 300 + 550*(681 - 330)/(830 - 330) = 300 + 550*(351)/(500) = 300 + 386.1your_FICO_score = 686.1 Hope this helps !- weitzhuis
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