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What FICO Score Gets You The Best Mortgage Rate?

By Stacy Williams

Everybody is concerned about their credit. It affects all aspects of a person’s life, and more now than ever before. With almost every single major transaction that a person does requiring a check of one’s credit, understanding and knowing one’s FICO score as determined by the major credit bureaus is extremely important.

What exactly is a FICO score?

A FICO score is essentially a single number that tells potential creditors how much of a risk it is to lend to a person. Better known as a “credit score,” FICO is one of only three companies that sells software with statistical models to calculate the likelihood that a person will default on a debt. However, it is the most widely used one, and all three major credit bureaus: TransUnion, Experian, and Equifax use the FICO models.

What FICO score gets one the best mortgage rate?

Obviously, a better FICO score will get a person a better mortgage rate. FICO scores range between 300 and 850 with the majority of scores between 650 and 799. Therefore, a person is able to get the best mortgage rate with a score of 850. This distribution and range of scores remains the same for all of the major credit bureaus. 850 is the goal in order to get the best mortgage rate.

What else does a FICO score affect?

A FICO score also has an effect on many things beyond getting the best mortgage rate. It also affects a person’s ability to seek and get employment, where a person can live, and the ability to get new lines of credit. If there is any one number that completely governs a person’s life, it is definitely his or her credit score.

Related posts:

1. What Affect Does My FICO Score Have On My Mortgage Interest Rate?
2. Does Having A High Credit Score Decrease My Mortgage Rate?
3. Can a Great Credit Score Guarantee the Best Mortgage Rates?
4. How Does My Credit Score Impact My Ability To Get A Mortgage Loan?
5. Can I Get A Better Mortgage Rate If I Improve My Credit?