This is how the lender determines how much of a risk you are as they will be deciding on lending you hundreds of thousands of dollars.  Your credit score is most often determined by your FICO score, which ranges from 300 - 850.   Your FICO score created by the Fair Isaac Corporation is based solely on information in consumer credit reports from the three major national credit reporting agencies.
     The higher your FICO score, the lower the risk you are considered to the lender.  A score above 580 usually has no problems getting an FHA type financing.  Scores of 680 and above usually are eligible for some of the more favorable lending programs.  Higher FICO scores result in lower mortgage payments and more savings to you.  So keep your score up!  Pay all your bills on time and keep your revolving credit lines like credit cards below the maximum credit limit.

740 - 850
700 - 739
680 - 699

600 - 679


300 - 599
                           

The best credit.
Considered Excellent Credit.
Good Credit, but the lender may require additional information from the borrower.
Considered risky credit.  The borrower may have to pay a higher interest rate to get a loan and some of the more favorable loan packages may not be attainable.
Considered poor credit.  The borrower may not be able to get institutional financing.

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