A 640 FICO score is considered acceptable and typically qualifies a borrower to receive prime rates, according to Credit.org. Compared to borrowers scored under 620, an individual in the 620 to 680 score range is usually approved for credit and has a projected delinquency rate of 15 to 30 percent.Continue Reading
In most cases, a 640 score does not qualify borrowers for the most competitive interest rates, Credit.org states. It is high enough, however, to help borrowers save money by avoiding the expensive loan terms offered to borrowers in the 550 to 620 score range.
Creditworthiness is measured on a scale of 300 to 850, and credit bureaus use data collected from millions of people to compare credit habits and determine which borrowers present the most risk, according to myFICO. The three major credit bureaus all generate FICO scores and approval criteria independently, so each creditor may view a borrower's level of risk differently.Learn more about Credit & Lending
While a multitude of factors impact a person's FICO credit score, they are broken down into five broad categories: payment history, amounts owed, length of credit history, new credit and types of credit used. Each factor has a different weighting in the overall score.Full Answer >
An excellent score is the level at which a borrower gets optimal loan terms and rates. The minimum credit score considered excellent fluctuates over time, but the Home Buying Institute has reported that a FICO score of 740 out of 850 was "excellent" as of 2013.Full Answer >
FICO scores range from 300 to 850, but there is no defined score that is considered good since lenders have different strategies and amounts of risk that they are willing to tolerate. A higher FICO score simply indicates to lenders that a credit applicant carries lower risk.Full Answer >
A credit score of 597 is typically considered subprime or fair, according to Credit.org from Springboard. Within the subprime score range of 550 to 620, approximately 50 percent of borrower accounts become delinquent. Borrowers with a score of 597 may have trouble getting loans, and any credit they are approved for may come with fees and high interest rates.Full Answer >