FICO Score Chart
This FICO score chart page contains a couple very interesting charts comparing what the score are and what it tells lenders about your ability to repay a loan. First of all what do the scores mean? The first of these two credit score charts simply tells us what they mean.
Of course the higher the score the better, but anything over 700 is pretty much considered to be Excellent. If you want to get the best deal on a loan that is where you want to be. The second chart compares two things, the default level and the percentage of population with a certain score.
The blue line indicates how likely it is that someone will default on their payments in the next 90 days. A score below 499 is considered to have an 87% chance of missing a payment in the next 90 days were as someone with a score of 800 or higher has a 1% chance of missing a payment in the same time period. I can see why higher scores means better treatment by the bank. The red line represents the percentage of the population with a given FICO score. It seems to spike up above 749 and fall back down at 800. I believe it indicates that a lot of people will build their credit up to that sweet spot in the high 700s and stop because there is really no difference between a 750 and 850 score as far as lenders are concerned. Return From FICO Score Chart to How to Build Credit History
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