According to Experian the Stockton area currently ranks 79th out of 142 credit markets the company follows. This is optimistic news for the area which has been the real estate poster child for this recession with some of the highest foreclosure rates in the nation. Stockton with a current score of 744 is now just below the national average of 749.
Do these numbers sound exceptionally high for a national average credit score? If so, it’s because this statistic is measured using the new Vantage score credit rating system launched in 2006. Vantage Scores differently than the FICO system by utilizing data from millions of credit files reviewed by the Experian, Trans Union and Equifax while FICO credit ratings are based on individual credit file factors such as personal debt-to-income ratio, current credit usage and credit history.
Consumers should know the difference between these two scores. What appears to be a good score based on the consumer’s familiarity with the FICO system could actually be a poor Vantage score if the borrower is unaware of which scoring system is being used. This possible confusion is due to the difference in how these two scores are rated.
Vantage Scores are rated as follows:
- 901-990 A
- 801-900 B
- 701-800 C
- 601-700 D
- 501-600 F
FICO scores are rated as follows:
Anything below 600 = High risk borrowers
620 = Dividing line between good and bad credit
640+ = Pretty good
650 = Average general credit-use behavior
690+ = Very good
720 = Excellent
In order to avoid any misunderstandings always be sure to know your FICO and Vantage scores and discuss what scoring system the lender will be using to determine your credit worthiness beforehand.