Below is a FICO score chart, this chart shows you what FICO score range you fall into and what interest rate you can expect to receive because of this. If you don’t already have your score, we suggest getting a free FICO score.
FICO Score Chart With Typical Mortgage Rates
| 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% |
The above chart shows you what interest rates you should expect to pay depending on your FICO score, A represents the advertised interest rate. As you can see if you have a very bad FICO score you’ll have to pay an additional 5% in interest rates – although in most cases you won’t be accepted for any loans unless you have a score in excess of 675 or a co signer with a good credit history.
It may seem unfair that those with bad FICO scores have to pay more in interest rates, but when you think about it carefully it makes perfect sense. People with low scores have a poor credit history and likely have a history of non repayment or defaults on their loans. Below is a chart which contains information on the delinquency (A debt or other financial obligation on which payment is overdue) rates for FICO score ranges.
FICO Score Chart With Delinquency Rates
| 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% |
As you can see from the chart above there is an extremely big correlation between a person’s FICO score and the chance they will be delinquent. Because of this lenders need to charge a higher rate of interest to account for the extra risk that they are taking with these borrowers. You can also see that the delinquency rate gets exponentially worse which is why most lenders will not lender to those with a score under 675 (which is approximately where delinquency rates hit double figures).
National Distribution Of Scores
To the left is the national distribution of scores, as you can see this follows a left skewed distribution with 73% of people between 650 and 850. The median score is approximately 723.