Credit Score Range
This article is about FICO credit scores.
What Is The Credit Score Range?
The FICO Credit Score Range is between 300-850, this score is calculated by using a mathematical model which was designed by Fair Isaac Corporation back in ’56. All three of the major credit bureaus use the FICO scoring system with a few slight tweaks, these tweaks also slightly change the score range and the name of the FICO score. Below is a table of those ranges:
| Credit Reporting Agency | FICO Score Name | Score Range |
|---|---|---|
| N/A | FICO | 300-850 |
| Equifax | BEACON® Score | 300-850 |
| Experian | Experian/Fair Isaac Risk Model | 330-830 |
| TransUnion | EMPIRICA® | 150-934 |
The original FICO score is still the most commonly used.
Good Credit Score Range
Anything over 675 is considered to be in the good credit score range, but to get the best interest rate you’ll need a score of 760+. Although a score of 720+ is usually enough to get a competitive interest rate – especially if you shop around first.
Deliquency Rate Credit Score Range
| Score | Percentage Of Population | Delinquency Rate |
|---|---|---|
| 300-499 | 1 | 87% |
| 500-549 | 5 | 71% |
| 550-599 | 7 | 51% |
| 600-649 | 11 | 31% |
| 650-699 | 16 | 15% |
| 700-749 | 20 | 5% |
| 750-799 | 29 | 2% |
| 800 or higher | 11 | 1% |
You are officially considered delinquent when you are 90+ days past due on a loan. The above table shows the percentage of people in each scoring range along with their delinquency rate. For example if your credit score is between 300-499 you have a 87% chance of being delinquent. If you were in that bottom range you’d struggle to be accepted for a loan, even those who are specific to people with bad credit. Thankfully only a small percentage (1%) is in that category. Most lenders will not lend to you unless you have a score of 675 or above (or a cosigner), approximately 68% of people are in this category.
Avg Credit Score Vs Age
The mean FICO score is 693 (the median is 723) and the average scores for each age range are listed below. This data should make sense for a number of reasons, the first reason is that credit history length plays a significant role in credit scores (accounting for 15% of the total score) and also people are more financially stable and reasonable as their age increases.
| Age Range | Average Credit Score |
|---|---|
| 18-24 | 638 |
| 25-34 | 652 |
| 35-44 | 659 |
| 45-54 | 685 |
| 55+ | 724 |
Interest Rates According To Your Credit Score Range
The higher your credit score, the lower the interest rate you’ll be offer. Below is a list of the FICO score ranges along with their typical mortgage rates. A stands for the APR (annual percentage rate).
| FICO Score | Grade | Typical Mortgage Rates* |
|---|---|---|
| 720-850 | Excellent | A |
| 700-719 | Very Good | A + 0.13% |
| 675-699 | Good | A + 0.65% |
| 620-674 | Fair | A + 1.80% |
| 560-619 | Bad | A + 4.30% |
| 500-619 | Very Bad | A + 5% |
How Much Can You Save If Your In The Good Credit Score Range?
0.13% may not sound like a lot, but over the life of of a mortgage it quickly adds up. Which is why we’ve decided to put together a hypothetical situation so you can see how much you’ll save if you have a good credit score.
In this example we are assuming a 30 year fixed mortgage with a base interest rate of 4.36% (which was the APR on the 4th of October, 2011), the loan amount is $250,00.
| FICO Score Range | APR | Monthly Payment | Total Interest Paid |
|---|---|---|---|
| 760-850 | 4.36% | $1,2460.00 | $198,561.48 |
| 700-719 | 4.49% | $1,265.23 | $205,481.51 |
| 675-699 | 5.01% | $1,343.58 | $233,690.69 |
| 620-674 | 6.16% | $1,524.69 | $298,887.52 |
| 560-619 | 8.66% | $1,950.70 | $452,257.16 |
| 500-619 | 9.36% | $2,076.65 | $497,588.28 |
As you can see if you have a score of 500-619, your monthly payments are almost doubled to those with the best credit score. After the 30 years you’ll end up paying an additional $299,026.8 when compared to somebody with a score of 760+.
Some people have said that these rates may be a little high, so we’ve produced another example – this time with less harsh penalties for those with lower credit scores. This should be more in line with the interest rates you can expect.
| FICO Score Range | APR | Monthly Payment | Total Interest Paid |
|---|---|---|---|
| 760-850 | 4.36% | $1,246 | $198,561 |
| 700-719 | 4.49% | $1,279 | $210,412 |
| 675-699 | 5.01% | $1,305 | $219,971 |
| 620-674 | 6.16% | $1,338 | $231,655 |
| 560-619 | 8.66% | $1,404 | $255,546 |
| 500-619 | 9.36% | $1,491 | $286,648 |
As you can see if you had a credit score of 500-619 you’d be paying an additional $88,087 in additional interest when compared to somebody with a rate of 760+. That works out to be almost an extra $3,000 per year – I’m sure there are lots of things you’d rather be doing with $3,000 per year.
As you can see, your FICO score can make a huge difference in how much you pay over the life of your mortgage. Knowing what your score is is half the battle, usually this will cost you money but we’ve put together a handy guide on free FICO scores. You should be aiming to have a score of 720 or higher, with a score of 760 ensuring you will get the best interest rate.
If your score is below 720 then you should spend some time improving it before applying for any loans, we’ve got you covered with our How To Improve Your Credit Rating guide.