Ficoforum (2024)

FAQs

Is myFICO the most accurate? ›

Also, as the official consumer division of FICO, myFICO uses the industry standard credit scores, which are the most accurate way of tracking your current credit status.

While achieving a CIBIL Score of 900 is technically possible, it is extremely rare. Scores above 760 are considered very good or exceptional, providing significant benefits such as lower interest rates and higher chances of loan approval.

Lenders know what they are getting when they review a FICO Score. FICO Scores are trusted to be a fair and reliable measure of whether a person will pay back their loan on time. By consistently using FICO Scores, lenders take on less risk, and you get faster and fairer access to the credit you need and can manage.

Mortgages with a 755 Credit Score

Nearly 70% of first mortgages go to borrowers with credit scores below 780, so you should be able to finance your home purchase without issue.

myFICO is the official consumer division of FICO, the company that invented the FICO credit score. FICO ^® Scores are the most widely used credit scores, and have been an industry standard for more than 25 years.

VantageScore. The VantageScore model—specifically Version 3.0 which is the most widely used—considers similar factors to the FICO score model.

According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.

Home loans

Your credit score might be only one piece of your home mortgage application, but it's among the most critical. With a 705 credit score, you're well above the 620 baseline score needed to qualify for most home loans, but borrowers with a 740 score or higher will typically get a better interest rate.

Although a lot of people might like the idea of a perfect credit score, they'd likely have a hard time actually achieving it. In the U.S., only about 1.7 percent of the scorable population had a perfect 850 FICO credit score in April 2023, according to FICO data.

Do lenders use FICO or Vantage? ›

Lenders use both Vantage Score and FICO Score to determine whether someone is likely to repay a loan or credit card balance on time and to what extent they are a credit risk.

Your FICO Score is a credit score. But if your FICO score is different from another of your credit scores, it may be that the score you're viewing was calculated using one of the other scoring models that exist.

For a $250,000 home, you'll likely need a fair to good credit score: 740+: Best rates and terms. 680-739: Good rates, still very good affordability. 620-679: Higher rates, may require larger down payment or FHA loan.

You can borrow $50,000 - $100,000+ with a 750 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.

Credit score is certainly not the only factor at play when lenders look at mortgage applications, but generally, a higher score will allow you to secure a lower mortgage rate. Typically, conventional lenders want to see a score of at least 620.

The primary credit scoring models are FICO® and VantageScore®, and both are equally accurate. Although both are accurate, most lenders are looking at your FICO score when you apply for a loan.

One credit bureau isn't more accurate than another, rather, they may simply have different methods of calculating your credit score. It's important to note that all three bureaus are used widely in the U.S. None of them are more “important” than the others.

Which of the 3 Credit Bureaus Is the Best? Of the three main credit bureaus (Equifax, Experian, and TransUnion), none is considered better than the others. A lender may rely on a report from one bureau or all three bureaus to make its decisions about approving a loan.