Friday, October 22, 2010

Credit scores: How 720 became the new 680 (Why the FICO requirement went up)


Ruth and Perry Mistry's Blog

Ruth and Perry

Credit scores: How 720 became the new 680 (Why the FICO requirement went up)

Credit scores: How 720 became the new 680
Until recently, a credit score of 680 was something to be proud of. It meant you paid most of your bills on time, got dinged when you went shopping for a refi, but in general, had a solid enough record to get a loan at the best rates.

Not anymore. That 680 is firmly second-tier these days, says John Ulzheimer, president of consumer education at Credit.com. Now, borrowers need at least 720 to get the biggest loans or the best terms, including a credit card with the longest 0% APR promotion or a jumbo mortgage. For millions of once-desirable consumers with scores between 680 and 720, that 40-point jump could cost thousands of dollars over the life of a typical loan.

Read more: Credit Scores: How 720 Became the New 680 - SmartMoney.com http://www.smartmoney.com/personal-finance/debt/credit-scores-what-you-need-now/#ixzz135wNAK7e

Source: Smart Money and C.A.R
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