Credit score scale range and guide
As strange as it may sound to some of you, there is a whole range of credit score scales, and with that, many questions arise. So I decided to put a small guide with no pretending that it will be complete. Credit score scale business is quite profitable to many, just consider:
- FICO that used to include all three scores from Equifax, TransUnion and Experian
- the fact that Experian severed its 6 year deal with FICO
- the emergence of VantageScore
- FICO score scale for consumers differs albeit slightly, from one for lenders
- long rumored MedFICO credit score for health care industry
- credit scale used to calculate insurance premiums
- credit score scale and credit rating scale
While virtually no one, including myself, knows for sure what proprietary credit score and scale are used to figure out someones costs of insurance or what exactly MedFICO is going to use, the main interest of the readers is credit score scale used by lenders to qualify them for home mortgages and car loans. Things get even more complicated when it comes to credit repair.
As I specifically pointed in repair credit score for the right type of loan, things that help to increase credit scores for a mortgage may just backfire if you apply for a car loan. But let’s go back to our credit score scale range and guide.
The former classic FICO scale ran slightly differently among three credit reporting agencies, and between the range of scores given to consumers (on the left) vs. with that when pulled by the lenders:
| Equifax Scale | 300 – 850 vs. 300 – 850 |
| Experian Scale | 330 – 830 vs. 300 – 850 |
| TransUnion Scale | 300 – 850 vs. 336 – 843 |
Now with Experian no longer being a part of the FICO, you have to get a separate Experian credit report and score, that is if you want to see the entire picture. The other thing that changed with ongoing housing and credit turmoils, what scale is used by lenders to determine your credit rating. Right now we can state quite confidently, that to qualify for a home loan, your average credit score must be at or above 620. I would offer you the following FICO scale to rate your credit:
| 720 and higher | A+ |
| 700 to 719 | A |
| 680 to 699 | B+ |
| 620 to 679 | B |
Just for laughs, take a look at what credit rating scale and range were used by sub prime lenders. I wrote that guide in February of 2006, when home loans were fast and easy, and disaster was getting quite imminent. But going back to the topic, VantageScore uses scale between 501 and 990, with higher scores representing obviously a lower likelihood of risk.
I am still not sure to what extent VantageScore is used by creditors at this point. But in any case, Vantage credit rating scale uses 5 letters and to obtain a loan, you should be rated no less than ‘C’, in my opinion:
| 901 to 990 | A |
| 801 to 900 | B |
| 701 to 800 | C |
| 601 to 700 | D |
| 501 to 600 | F |
Now that you are completely confused with credit score scale, here are several useful links you may want to read at your leisure,
VantageScore vs. FICO Score confusion explained
VantageScore Credit Score vs. FICO Score
Credit scores and what they mean
