Credit Score Percentile Rankings

Rough guide:

450 - 550 = Tier 4
550 - 630 = Tier 3
630 - 720 = Tier 2
720 - 800 = Tier 1

But keep in mind that the FICO score is only one aspect of what "tiers" your credit. For example, you may have a mid 500 score and still qualify for Tier 2, or even Tier 1, interest rates.

I once had a guy with 19 good account, 0 derog accounts, and 1 account that had been delinquent in the past (a 30 day late), and 85% revolving available. He was around a 540, and I got him hooked at a tier 1 rate.

Check out wikipedia's FICO entry to get a better understanding.

 

National distribution of FICO scores: http://www.myfico.com/CreditEducation/CreditScores.aspx?fire=5

 

That one DQ account knocked him down to a 540 ? Wow.

When we bought our house 10 years ago, the mortgage broker said our credit score was the second-highest she had seen in 18 years as a banker/broker.
She said it was 2 points away from perfect, but I don't recall what perfect was back then, I thought it was 1,000.

 

I thought it went to 850. I know with complete certainty it goes above 800...

 

you got someone else's credit report by accident once?

 

Actually, I did... yours... That's how I know the lower end of the scale.. )

 

you mean no credit at all?

 

All in good time...

 

yeah, 850 is my understanding as well. wikipedia concurs too.

doody.

 

Last I checked a few weeks ago I was at 820. Which is a good bit higher then it was when I got the black card, which knocked it to like 700!!!!

 

I wonder if I spray-painted my Am-Ex card black, then painted the raised portions white... oh never mind....

 

The lender (bank) usually sets their own guidelines for tiers. If my lenders had a tier system like the one you listed above, I would have an Enzo and not a 348 Spider. That tier system is my wet dream.

I only deal with auto loans/leases. I have about 15 different lenders and they all vary. There is more to life then just a "credit score" with some lenders. Trick is finding the right lender for the right customer.

 

Correct, which is why I included the caveat that FICO is not the determining factor in tiering a borrower.

Tiers will vary greatly from bank to bank, especially when considering what is being purchased. For the vast majority of Americans, however, who are purchasing $20k - $50k cars, the above tier breakdown is fairly accurate.

F-car financing is considerable different, but it account for far less than 1% of the auto financing out there.

 

Remember: The credit score that the credit bureau will give you with your "free report" or that you will get from one of the credit score tracking services is NOT the same credit score lenders will use.

There are multiple score models and variations. The score the bureaus will give you is a modified consumer score. The score we use for mortgage lending is a mortgage score. It happens all the time that people will tell us "I just got my scores from the bureaus and they are all over 750" and we pull a report and the high score is 690 or so.

If you cannot use it for lending.... its worthless.




Terry