Difference between 600 and 700 credit score

For just about anything you want to get off your chest about credit cards.
6 posts
creditblogger11
 
Posts: 1
Joined: Tue Jan 12, 2016 1:40 pm

Difference between 600 and 700 credit score

Postby creditblogger11 » Tue Jan 12, 2016 1:42 pm

While there are general guidelines that different sites use to measure a good, great, average, or below average credit score, is there any tool that allows one to see the true difference between having two different credit scores?


Nixon
Centurion Member
Centurion Member
 
Posts: 1093
Joined: Mon Nov 03, 2014 11:12 am
Location: Great Southwest

Re: Difference between 600 and 700 credit score

Postby Nixon » Wed Jan 13, 2016 6:11 am

One gets approved, Usually. (700)

The other gets declined or put on a very short leash. (600)


Scores are not linear indicators of creditworthiness.
Image

User avatar
Vattené
Centurion Member
Centurion Member
 
Posts: 1194
Joined: Sun Jan 26, 2014 3:55 am
Location: US

Re: Difference between 600 and 700 credit score

Postby Vattené » Wed Jan 13, 2016 9:06 am

Nixon summed it up well, but it also heavily depends on what kind of credit your are seeking and the specific lender. It's pretty easy to get a car loan, for example, but with bad credit you'll be paying an exorbitant interest rate. The same score in the same model with the same CRA (potentially even with the same lender) could get you a flat out denial on a mortgage application. Even once you've above the threshold to generally get approved for any credit card, the score will in part determine what APR you will get on it (hopefully you'd pay in full anyway, so a high APR wouldn't make any practical difference to you). The specific criteria lenders set for qualifying for approval or for certain interest rates simply aren't made available.
-Vattené
FICO-8:
EX - 805 (2/17) | TU - 787 (2/17)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

takeshi
Centurion Member
Centurion Member
 
Posts: 1733
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Re: Difference between 600 and 700 credit score

Postby takeshi » Wed Jan 13, 2016 9:44 am

creditblogger11 wrote:While there are general guidelines that different sites use to measure a good, great, average, or below average credit score, is there any tool that allows one to see the true difference between having two different credit scores?

Not really. You have consider that there isn't just one scoring model used by all creditors so a 600 or 700 isn't necessarily the same for all scoring models. Additionally, creditors and products do not all have identical underwriting criteria and none of the specifics regarding underwriting criteria are disclosed. We can only try to guess based on aggregated anecdotal evidence but that has its limitations and pitfalls. It's also never just about score.

That said you can look around in the Credit Pulls Database (Google to find) if you know which specific model the score is based on.

Don't just obsess over numbers. Learn to interpret your report data.

kdm31091
Centurion Member
Centurion Member
 
Posts: 1057
Joined: Sat Feb 21, 2015 3:35 pm
Location: Claymont, DE

Re: Difference between 600 and 700 credit score

Postby kdm31091 » Wed Jan 13, 2016 9:56 am

As takeshi said it's never just about score. Someone with a 775 FICO can be denied for a new card because of too many new accounts or inquiries, where a 675 score without such inquiries/accounts may be approved. So the score alone doesn't mean as much as some people act as though it does.

Once you pass the mid to high 700's you are pretty much as good as you can be in terms of getting approved for the best terms. A higher number may be satisfying to the ego, but isn't really important for approvals.

Scores are generally arranged into "buckets", according to "poor", "fair", "good", "excellent". The bucket will help determine your terms of approval such as APR but again the score itself is not the only factor -- its the whole profile.

Pay your bills on time, keep accounts in good standing, don't add new cards each month...over time, that's all you have to do. Maintain the basics and your score will grow. There is no need to apply for 10 extra cards to "buffer" one's utilization as is a popular meme on some corners of the Internet. Maintain what you have in good standing and you'll be fine.

aj023
Green Member
Green Member
 
Posts: 22
Joined: Sat Jan 23, 2016 3:22 pm

Re: Difference between 600 and 700 credit score

Postby aj023 » Tue Jan 26, 2016 11:36 am

kdm31091 wrote:As takeshi said it's never just about score. Someone with a 775 FICO can be denied for a new card because of too many new accounts or inquiries, where a 675 score without such inquiries/accounts may be approved. So the score alone doesn't mean as much as some people act as though it does.

Once you pass the mid to high 700's you are pretty much as good as you can be in terms of getting approved for the best terms. A higher number may be satisfying to the ego, but isn't really important for approvals.

Scores are generally arranged into "buckets", according to "poor", "fair", "good", "excellent". The bucket will help determine your terms of approval such as APR but again the score itself is not the only factor -- its the whole profile.

Pay your bills on time, keep accounts in good standing, don't add new cards each month...over time, that's all you have to do. Maintain the basics and your score will grow. There is no need to apply for 10 extra cards to "buffer" one's utilization as is a popular meme on some corners of the Internet. Maintain what you have in good standing and you'll be fine.


I think people are too focused on credit scores these days since they seem to be more readily available.

All you need to do is make sure utilization ratios are kept low on each card and pay in full each month. It is not complicated. If you can't pay in full, you can transfer balances at low inerest rates if utilization is kept low on individual cards.

I have perfect credit which allows me to get promotionals when offered for additional money off spend and rewards points but I don't do those often due to hit on credit score. The last one I was preapproved for which was better than other deals I could have gotten on my own.

The question of one score vs another isn't meaningful per say. But actual differences will be acceptance on better tier credit cards and other financial products with a 700 and lower downpayments and payments required as well as a lower interest rate provided for higher credit score customers.

Just follow the basic rules and you will be fine.



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests