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The FICO Mortgage Score and FICO Score XD 2 are between 300 and 850. [22] [23] Higher scores indicate lower credit risk. [24] Experian classifies FICO credit scores lower than 580 as very poor, 580–669 as fair, 670–739 as good, 740–799 as very good, and 800–850 as exceptional. [25]
Over the same time period, the average credit score for those with a mortgage has risen from 739 to 758. That puts the average credit score for mortgage holders 40 points above the national average.
Here’s how much you’d pay at the current rates for each credit score range. These examples are based on national averages for a 30-year fixed mortgage loan of $300,000. FICO Score
Households with the lowest credit scores – between 550 and 599 – saw their average scores jump by 20 points from April 2020 to April 2021, the largest improvement across all credit score tiers.
A credit score is primarily based on a credit report, information typically sourced from credit bureaus. [ 2 ] Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt .
When you apply for a mortgage, your credit score is generally one of the most important factors in determining your interest rate. This can make a big difference when it comes to your monthly ...
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