Question:

Credit score rating definitions: A-credit, B-credit, C-credit, D-credit

Answer:

Credit score rating is widely used by financial institutions to assess the trustworthiness of borrowers; by employers to assess the responsibility of their employees; by insurers and other businesses to decide on the type of product to offer to the customer.

FICO Score

Generally, FICO (Fair Isaac Corporation) score is the most widely used credit rating model in the United States and ranges from 300 to 850. The exact formula for calculating FICO credit score is not disclosed but FICO have pointed the following factors for determining credit rating and their approximate weighted contribution:

  • 35% - previous payment history
  • 30% - amount of debt owed
  • 15% - length of credit history
  • 10% - new credit obtained recently
  • 10% - types of credit used

Understanding A-Credit, B-Credit, C-Credit, and D-Credit Notations

Credit scores may be a little confusing to understand. Even within a FICO score there are additional ratings that may vary from lender to lender.

FICO Score Credit Valuation Letter Grades
720 + excellent A-credit
650 + good B-credit
575 + average C-credit
below 575 poor D-credit

However, as we already said, credit ratings may vary from lender to lender. Additionally, those A, B, C, D ratings can become A+, A-, etc. and what for one lender can be a B- for another could be a C+.

Bad Credit Ratings

Furthermore, A-credit, B-credit, C-credit, and D-credit will be used by subprime lenders and often refer to borrowers with FICO credit scores below 630. In that case A-credit applies to people with 580+, B-credit will be 560+, C-credit will be 530+, and D-credit will be 500+.

VantageScore Credit Rating

VantageScore was introduced by the three major credit-reporting agencies in 2006. This credit score model ranges from 501 to 990 and also assigns letters from A to F to the different credit score ranges.

Vantage Score Letter Grades
901-990 A-credit
801-900 B-credit
701-800 C-credit
601-700 D-credit
501-600 F-credit
Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 3.1/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: