How Lenders See You Sample - FICO Standard

FICO® Standard

FICO® Standard lets you choose individual credit scores and reports from TransUnion and Equifax. FICO® Standard may be right for you if:

  • You’ve already purchased one or two credit scores in the last three months.
  • You’re about to rent an apartment, buy a cell phone or make a similar purchase.
Equifax, TransUnion

Instant Online Access

$19.95 Shop Now

Learn more

FICO® Report –

February 8, 2012 John Smith FICO® score: 707

FICO® Score Simulator Printable Version

How Lenders See You

707

A FICO® score of 707 is slightly below the average score of U.S. consumers, though most lenders consider this a good score.

What this means:

  • You have a good score and a wide array of loans and credit products will likely be available to you.
  • Most lenders will consider offering you very competitive rates and terms on loan products.
  • Some lenders may require additional information, such as income or time at job, to help them more accurately set the terms of your loan product.

How FICO® scores relate to rates and monthly payments

Mortgage rates as of May 27, 2003

FICO® score APR Monthly payment
720-850 5.247% $1,380
700-719 5.372% $1,399
620-699 6.485% $1,578
500-619 8.146% $1,860
400-499 32.111% $6,690
300-399 32.111% $6,690
Actual rates vary by lender.

When you apply for a loan, lenders will look at one or more of your FICO® scores. Your score directly determines the interest rate you’ll pay on your loan. The table to the left shows rates you might be offered based on your FICO score.

Using a 30 year fixed mortgage as an example, you can see the difference in rates between someone in the low 600 range and someone in the high 700 range. On a $250,000 mortgage this difference could mean a high score would save more than $480 each month. You can see how important it is to ensure your FICO score is in good shape before buying or refinancing your home.

Your risk to the lender

The reason consumers with good FICO® scores get better interest rates is because they pose less risk of missing payments or defaulting on a loan. The chart at the right clearly shows that consumers with high FICO® scores are lower risk. The power of the FICO® score to predict which borrowers are risky is one reason why so many lenders use FICO® scores in making loan decisions.

Most lenders would consider consumer with a FICO® score of 707 as very low risk. 5% of people in your score range get into serious credit trouble.

The risk rate shown here is the percentage of borrowers who reach 90 days past due or worse (bankruptcy, account charge-off) on any credit account over a two-year period.