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March 29, 2008 |
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As lending decisions have become increasingly automated, credit scores have become essential tools for creditors evaluating borrowers. FICO scores, the most commonly used, range from 300-850, and are derived by the credit bureaus from the information in a credit report. As each of the credit bureaus uses its own information to derive the credit score, scores often vary between bureaus. A score below 600 is widely considered subprime, a score above 650 is widely considered prime, and scores in between are treated differently depending on the lender. Credit scores are not provided as part of the free annual credit report consumers may obtain, but may be purchased from each bureau for a nominal fee. |
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