Ficoforum (2024)

FAQs

How reliable is the FICO score? ›

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.

Buying a home with a 755 credit score may be possible; however, it could be more challenging than if you had an excellent credit score. Some lenders may require a larger down payment, charge higher interest rates or have stricter loan terms.

Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.

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 the majority of lending decisions most lenders use your FICO score. Calculated by the data analytics company Fair Isaac Corporation, it's based on data from credit reports about your payment history, credit mix, length of credit history and other criteria.

For a $400,000 home, you'll likely need a good to excellent credit score: 740+: Best rates and terms. 700-739: Slightly higher rates. 660-699: Higher rates, may require larger down payment.

What credit score is needed to buy a $300K house? The required credit score to buy a $300K house typically ranges from 580 to 720 or higher, depending on the type of loan. For an FHA loan, the minimum credit score is usually around 580.

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.

Having said that, your credit score is a very important piece of the puzzle, and a 747 credit score should qualify you for an excellent mortgage rate. To illustrate this, as of Nov. 1, 2022, the average mortgage APR in the U.S. was approximately 7.1%.

How big of a loan can I get with a 750 credit score? ›

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.

Key Takeaways. Your credit score is a major factor in whether you'll be approved for a car loan. Some lenders use specialized credit scores, such as a FICO Auto Score. In general, you'll need at least prime credit, meaning a credit score of 661 or up, to get a loan at a good interest rate.

Is "credit score" the same as "FICO^® score"? Basically, "credit score" and "FICO score" are all referring to the same thing. A FICO score is a type of credit scoring model. While different reporting agencies may weigh factors slightly differently, they are all essentially measuring the same thing.

Although it's rare, mistakes happen, and it is possible that incorrect information on your credit report—such as inaccurate personal data or payment history—is causing your scores to drop.

Keep an eye on all three credit reports for errors that could be affecting your credit score. Regularly check both your FICO score and your VantageScore and, before applying for a line of credit, ask the lender which scoring model and version it uses.

Overall, Credit Karma may produce a different result than one or more of the three major credit bureaus directly. The slight differences in calculations between FICO and VantageScore can lead to significant variances in credit scores, making Credit Karma less accurate than most may appreciate.