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What’s In Your FICO® Credit Score?
35% Payment history
30% Amounts owed
15% Length of credit history
10% New credit
10% Types of credit used
• When you apply for credit – whether for a credit card, a car loan, or a mortgage – lenders want to know what risk they’d take by loaning money to you.
• FICO® scores are the credit scores most lenders use to determine your credit risk. You have three FICO® scores, one for each of the three credit bureaus – Experian, TransUnion, and Equifax. Each credit score is based on information the credit bureau keeps on file about you. As this information changes, your credit scores tend to change as well.
• Your 3 FICO® credit scores affect both how much and what loan terms (interest rate, etc.) lenders will offer you at any given time.
• Taking steps to improve your FICO® scores can help you qualify for better rates from lenders.
Savings Example
The higher your FICO® scores the less you can expect to pay for your loan. For example, on a $216,000 30-year, fixed-rate mortgage:
As you can see in this example using today’s national rates, a person with a FICO® score of 760 or better will pay $228 less per month for a $216,000 30-year, fixed-rate mortgage than a person with a FICO® score of 620 – that’s a savings of $2,736 per year. You can see how essential improving your credit scores can be if they are low, and also how important it is to keep them high if they are good.
35% Payment history
30% Amounts owed
15% Length of credit history
10% New credit
10% Types of credit used
• When you apply for credit – whether for a credit card, a car loan, or a mortgage – lenders want to know what risk they’d take by loaning money to you.
• FICO® scores are the credit scores most lenders use to determine your credit risk. You have three FICO® scores, one for each of the three credit bureaus – Experian, TransUnion, and Equifax. Each credit score is based on information the credit bureau keeps on file about you. As this information changes, your credit scores tend to change as well.
• Your 3 FICO® credit scores affect both how much and what loan terms (interest rate, etc.) lenders will offer you at any given time. • Taking steps to improve your FICO® scores can help you qualify for better rates from lenders.
Savings Example
The higher your FICO® scores the less you can expect to pay for your loan. For example, on a $216,000 30-year, fixed-rate mortgage:
Actual National Interest Rates - Updated Daily | ||
If your FICO® score is |
Your interest rate is |
Your monthly payment is |
760 - 850 |
5.87% |
$1,276 |
700 - 759 |
6.09% |
$1,307 |
680 - 699 |
6.26% |
$1,332 |
660 - 679 |
6.48% |
$1,362 |
640 - 659 |
6.91% |
$1,424 |
620 - 639 |
7.45% |
$1,504 |
As you can see in this example using today’s national rates, a person with a FICO® score of 760 or better will pay $228 less per month for a $216,000 30-year, fixed-rate mortgage than a person with a FICO® score of 620 – that’s a savings of $2,736 per year. You can see how essential improving your credit scores can be if they are low, and also how important it is to keep them high if they are good.