What are Credit Brackets?

Ask Carolyn Warren

This is an advanced topic, not one I see often discussed.

The FICO scoring system has multiple credit score brackets. Each bracket is scored on a “grading curve,” meaning all the credit profiles in that same bracket are scored against each other.

Image by Experian

Think of it like classrooms. The first graders are scored together; the second graders are scored together, and so on. The student who earns an “A” in first grade would not earn an “A” in third grade for the same work. Third graders are scored more strictly than first graders.

If you have a judgment on your credit report, you are in a bracket with other people who also have judgments. If you have zero public records and zero late payments, you are scored against other people who also have zero public records and late payments. Thus, the people with perfect credit are scored against…

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