When you apply for a loan, having a good credit score can help you qualify for favorable rates and terms. However, it is difficult to determine whether or not a particular number is good.
This is because the threshold for what is deemed acceptable can vary depending on the type of loan you’re applying for and the lender reviewing your information. There is a likelihood that you will end up with scores that vary based on which credit scoring model was employed by the lenders.
In general, lenders do not disclose their minimum score requirements to the public.
What Are the Credit Score Bureaus in the US?
Experian, Equifax, and TransUnion are the three major bureaus competing in the United States’ lending market. This triumvirate controls the market for gathering, analyzing, and disseminating consumer information in the credit markets.
What Is the Range of Credit Scores?
FICO and VantageScore are two major brands that compete in the loan business in the United States. A good credit score is similar to the FICO and VantageScore models, with significant differences.
What is a Good Credit Score?
It ranges differ depending on the algorithm employed (FICO vs. VantageScore) and the bureau that pulls the score (Experian, Equifax, and TransUnion).
You can check which credit score range you fall into using the estimates below:
FICO Score
- Very poor: 300 to 579
- Fair: 580 to 669
- Good: 670 to 739
- Very good: 740 to 799
- Excellent: 800 to 850
VantageScore
- Very poor: 300 to 499
- Poor: 500 to 600
- Fair: 601 to 660
- Good: 661 to 780
- Excellent: 781 to 850
Factors That Influence Your Credit Score
Depending on the model, credit scores are calculated differently. Here are the main elements that FICO and VantageScore take into account:
- Payment history
- Amounts owed
- Credit history
- New Credit
- Credit mix
What Credit Score Do You Need to Get an Auto Loan?
There is no minimum specified score to apply for an auto loan. However, it is best to maintain your score above 661 when in comes to VantageScore and 670 or more when it comes to FICO Score.
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