FICO requirements for a loan

FICO scoring is used by the majority of banks and lending institutions. From the perspective of borrowing money, you will be screened with a credit check to help the lending institutions better measure the risk of default from borrower to borrower. There are three major credit bureaus used to calculate an individuals scoring: Equifax, Experian and TransUnion.  Each credit bureau calculates their own Credit scoring and will vary based on their specific models. FICO scores for obtaining a mortgage will be between 300 - 850 and the higher the score the lower the credit risk. The greatest weight to credit scoring factors are: Payment history, debt burden, length of credit history, types of credit used and recent credit searches on consumers.

Perfect scoring is not necessary to get financing. The first chart shows over half of all loans were provided with consumer credit scores between 600 and 749 and the second chart shows the average scoring for several different types of loans.  

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