Independent Community Bankers of America has partnered with whatsmyscore.org


What do the score numbers mean?
The Fair Isaac Corporation has developed the FICO scoring system which is used by the 3 major credit reporting agencies. FICO scores provide a guide to future risk based solely on credit report data. The higher the score, the lower the risk for a lender, although no score is able to say whether a specific customer will be good or bad. Lenders often use additional factors to determine whether to give credit and which interest rates to offer, and each lender has its own strategy to assess risk.

Scores range from 300 to 850, and most people score in the 600s and 700s. The higher the score, the lower the risk for a lender. Because credit scores are just a guide for lenders who use them in a variety of ways and with other information, it is impossible to say what is a “good” versus what is a “bad” score. Credit scores change over time taking into account both current and past financial performance. To give you an idea of how much payments can change based on your credit score, see the chart of how interest rates and monthly payments on a $150,000 30-year, fixed-rate mortgage are affected by the FICO credit score (as of March 2007).

Your FICO ScoreYour Interest RateYour Monthly Payment
760 – 8505.78%$878
700 – 7596%$899
680 – 6996.18%$916
660 – 6796.39%$937
640 – 6596.82%$980
620 – 6397.37%$1,035