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What does a "fair" credit score mean?

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What does a "fair" credit score mean?

Postby holden » Sun Dec 16, 2012 7:40 am

is that good or bad? How good or bad is it? What type of credit cards can I get with a score of 661?
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What does a "fair" credit score mean?

Postby scannalan » Sun Dec 16, 2012 7:46 am

There are 3 levels as followed:

Fair 620/659
Good 660/749
Excellent 750/840

A good score will take 24 months of activity and that's the score you need to get lower rates on future loans/mortgages.
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What does a "fair" credit score mean?

Postby yiska » Sun Dec 16, 2012 7:51 am

There are 3 levels as followed:

Fair 620/659
Good 660/749
Excellent 750/840

A good score will take 24 months of activity and that's the score you need to get lower rates on future loans/mortgages.
This should help you to understand how credit scores work..

FICO scores from 300 to 850 and Vantage Plus scores from 501 to 990.

Here is the breakdown for both systems.

Vantage Plus system scores from 501-990.
A-901-990
B-801-900
C-701-800
D-601-700
F-501-600

FICO system scores from 300-850.
Elite-740-& up
Prime-700-739
Preferred-660-699
Standard-625-659
Sub-prime-624-& under

FICO is the only one that matters since it's the one that all major lenders look at.

So as you can see it depends on if your looking at a true FICO score or a Vantage plus score.

As far as what makes up credit scores it's the following;
1. Payment history (longer the better) 35%
2. Time in bureau (longer the better) 15%
3. Types of credit (mix of credit cards & installment loans) 10%
4. New credit (new accounts and inquiries) 10%
5. Debt to credit ratio (lower the better) 30%

So as you can see credit is based on opening and paying accounts. So without that you would have no score at all.

The credit bureaus use different scoring systems, Equifax scores from 250 to 843, Experian from 253 to 893. Transunion from 250 to 877.

There are also 3 different types of scores. The standard that you see, the auto enhanced that only auto dealers and lenders see and the factual which only mortgage companies and lenders see.

So each person can have 12-15 different scores none of which will match. Great system huh. Add to this the fact that all lenders do not even report to all 3 credit bureaus and some don't report at all and you begin to see the problem with our current system.

As far as a real score goes, go to myfico.com it will cost $20.00 but you will get a real FICO score. You might also go to annualcreditreport.com and print out all 3 of your reports for free, no reason to pay a credit monitoring service.

Good luck.
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What does a "fair" credit score mean?

Postby christos13 » Sun Dec 16, 2012 7:55 am

"Fair" usually means "ok, but not great." Assuming the 661 score is a "Fair Isaac" or similar equivalent score, a 661 is just that - not horrible, not great. Pre-2008, 661 would get you a credit card, auto loan, or home loan easy enough, assuming other factors were acceptable (debt to income, no bankruptcies, etc.) These days, it's harder to get credit, so you probably won't get a huge credit limit, and you likely won't get the best rates out there, but again, your score isn't terrible.

I would think if you shopped around a bit, you would probably end up with somewhere between $250-1000, at a 20%+ interest rate. It really all depends though.

My recommendation - open an account at a credit union, even if its $50 in a savings account. If they offer a credit card, you'll get your best deal there (though it may not be the easiest to get.)
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What does a "fair" credit score mean?

Postby efran » Sun Dec 16, 2012 7:57 am

It could be better.
Check your credit reports and figure out what is in them.
The score is just a 3 digit number that tells you basically nothing.
Consider it a con game to rob you out of your money.

Get your 3 reports once a year for free at
Annual Credit Report.com https://www.annualcreditreport.com/cra/index.jsp
No credit/ debit card required.
Review them line by line and make sure you have no collection agencies after you.

Do not touch any form of credit unless you clear up what you owe with any collection agencies on your reports.
Then... save. At least $1,000 emergency fund in savings.
Then... ask about credit cards.

Please do not touch credit cards.
You will run up balances and not pay in full each month.
This will only destroy your credit further.
Leave credit cards alone until you are at least somewhat financially more secure.
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Re: What does a "fair" credit score mean?

Postby russ84carnegie » Mon Dec 17, 2012 12:59 am

One way is to subscribe to a credit monitoring service. There are some paid ones that are pretty good, and others that are free but maybe ad supported.

You might want to check out http://www.creditsesame.com because they started offering a free service to monitor your credit, using Experian.
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