What is the FICO number that is considered PRIME?

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January 14th, 2009 - Posted by Joe

The following post in our Reader Question series is an actual user submitted question. To maintain the integrity of the original question, we do not edit or change reader questions in any way.

Q: What is the FICO number that is considered PRIME?

A: Before we get into what FICO score may be considered prime, it is probably a good idea to briefly cover what a FICO score is and what the term prime means as it relates to credit scoring and lending. A FICO score is a three digit number that is determined by calculating various factors in your credit report. FICO scores range between 300 on the low end and 850 at the high end. Since most consumers have three different credit reports (one from each of the three credit bureaus including Equifax, Experian and TransUnion) and each of those credit reports probably contain slightly different information, then it is likely that most adults have three different FICO scores. According to Fair Isaac, the company that created the FICO scoring methodology, about 90% of all lenders use a FICO score to make decisions about a consumers creditworthiness.

A FICO score takes into account a number of factors including your payment history, the number, type and age of your credit accounts and how much available credit you have. Consumers with higher FICO scores will generally qualify for better financial terms when they borrow money, whether you are applying for a mortgage loan, an auto loan or signing up for a new credit card. These types of loans are usually called prime or 'A' loans. On the other hand, consumers with lower credit scores will usually get less favorable financial terms. These are called sub-prime loans.

So, now to answer the original question of what FICO score range is considered prime. According to the Federal Citizen Information Center (FCIC), a government organization that publishes information for American consumers, a FICO score in the 700+ range will be viewed as a good credit risk for most lenders.

In the eyes of most lenders, FICO credit scores above 700 are very good and a sign of good financial health. FICO scores below 600 indicate high risk to lenders and could lead lenders to charge you much higher rates or turn down your credit application.

It is important to note that many lenders may take factors beyond just your FICO or other credit score into account when making lending decisions. But, generally speaking, those consumers with FICO scores above 700 should be able to qualify for the best financial terms when applying for any type of credit or loan.

The best way we know of to get access to your FICO score is to sign up for Equifax's credit monitoring service. Equifax provides a free Equifax FICO score at sign up along with a free three bureau credit report. The service also includes three bureau credit report monitoring which will alert you if any changes post to your credit file. You can learn more about Equifax and other credit report monitoring services at NextAdvisor.com