If a borrower has a FICO score of 735 out of a possible 850. 

Peter Roberts is a qualified osteopath living and working in Maine.  He is married with three children and earns a reliable income from his practice. His credit score is 735.

This score is considered Good in this scale, where Very Good is the highest rating. A number of variables affect the score, but with 735, Peter would be considered a low risk by the lending institutions, concluding that he is capable of repaying debts consistently and on time. Any negative remarks in the credit report would have little impact on the score. This borrower would be offered lower interest rates and better terms than those with lower scores. The final overall terms of any credit or loan offering would also be dependent on the monthly income, monthly debt and Peter’s employment history.

There are a few areas of improvement that would help raise the score. Firstly, there is not enough revolving debt experience, so adding a variety of account types and demonstrating good payment behavior will help. Secondly, there could be too many delinquent accounts on the credit report, when compared to the total number of accounts. It is important to establish creditworthiness through consistent and established on-time payments.  

Thirdly, the balances on this borrower’s bankcard accounts are too high in comparison with their credit limits. It is advisable to either raise the limits via a request to the lending institution in order to improve the ratio or repay existing balances away from the limit. 

Finally, there could be recent late payments posted on the credit report. Having one or two late payments, compared with dozens of on-time ones has some, but not a hugely significant impact on the credit score. However, credit worthiness is based on no late payments, so it is important that Peter maintains good paying practices.