Understanding the 2024 Credit Scoring System for Investor and Business Loans
Your credit score is a barometer of your financial and personal creditworthiness. Lenders, insurance companies and even potential employers inspect your credit score to learn more about you and your financial habits. It is important to not only know your credit score, but also the basics of credit reporting.
The three major credit bureaus are Equifax, Experian and TransUnion. Each of them will issue a credit score to consumers. Credit data varies among the bureaus. Their data is based on proprietary information that is used to generate credit scores. To keep a level playing field, banks, credit card issuers and most lending institutions will utilize a consumer’s middle credit score. The middle credit score is used to represent the average credit score from the major credit bureaus.
The Important Number in Your Credit Score
Your ‘middle credit score’ is one of the most important because it is the one most lenders refer to. Your middle score is simply a term used by mortgage loan officers to describe the score used in determining which of your three scores will used in the application process. Meaning they pull all 3 scores, then what ever score is in between the highest and lowest is the score they use to ‘shop’ your loan request around to lenders with.
If you have 565 TransUnion, 625 Equifax, and 650 Experian, the 625 Equifax would be the score used for determining your loan terms. In this way your loan is more likely to be picked up by a bank regardless of the scoring model that bank might use.
Highest Credit Score
The highest possible credit score that you can achieve is 990 and the highest attainable FICO score is 850. According to credit analysis firm FICO, consumers with perfect or near perfect credit scores typically carry small balances on their credit cards and utilize a small portion of their total available credit. The credit reporting agency Experian reported that as of 2023, Minneapolis, Minnesota had the highest average score of any city, with an average score of 787.
Your credit score is a barometer of your financial and personal creditworthiness. Lenders, insurance companies and even potential employers inspect your credit score to learn more about you and your financial habits. It is important to not only know your credit score, but also the basics of credit reporting.
Lowest Credit Score
Poor credit can be caused by many factors. As of 2023, just over 14 percent of people with a credit profile had a poor credit score. Credit scores bottom out at 300; however, anything from 300 to 549 is considered a poor FICO credit score. The lowest average score of a city in the United States belongs to Harlingen, Texas, at 688, almost a full 100 points below Minneapolis.
Ideally you should have your credit scores as you shop for a loan. That way you can more accurate loan terms. Get all three of your scores fast right here!

Average Credit Score
The average credit score in the United States as reported by Experian in 2023 was 750. While the average debt load of Americans increased by 1.4 percent, the number of payments made beyond their due date actually decreased by 2 percent. The average FICO score in 2023 was 690, which according The Wall Street Journal is approximately the same average FICO score reported in 2007, before the last large recession.
Credit Report Basics
In addition to the scores, credit reports contain other information that potential lenders use to make their decisions. Personal information such as name, address, social security number and date of birth help provide your identity to potential creditors. Each of your credit accounts are listed on the credit report, along with balance and payment history.
Getting a quote from us will not affect your credit because we do not pull your credit in any way until you are satisfied with our loan terms.
The number of times that you requested additional credit, known as a credit inquiry, is listed in detail on the report. Additionally, credit reporting agencies obtain public record information to attach to your credit profile. This information includes bankruptcy filings, wage garnishments and tax liens.
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