More Consumers Have Higher Credit Scores
About one in five buyers have a FICO score that is 800 or higher. The percentage has slightly risen from 19.9 percent currently from 19.6 percent six months earlier, according to the Fair Isaac Corp.
As such, fewer purchasers have FICO ratings below 550, a steady decline that has been appearing since late 2009.
Since Fair Isaac Corp. begun following in October 2005, the national FICO score is at a record-breaking high at 695. The change in FICO ratings does appear to be hinting at some leveling off, in any case.
FICO scores are one of three key metrics lenders use to evaluate prospective borrowers and determine mortgage rates. The rates borrowers get between the highest and lowest acceptable FICO scores can vary by more than 2.4 percent.
For instance, a FICO score somewhere around 760 and 850 may get an APR at 3.612 percent though a borrower with a FICO score somewhere around 620 and 639 may get one at 5.201 percent.