Average Credit Scores – Episode #60

Average Credit Scores

What are average credit scores in today’s credit crisis? Have they changed?

First, Fair Isaac reports a median FICO credit score of 723. This is not the average FICO credit score. They don’t report the average as they believe the median to be a more interesting number. National Score Index from Experian reports a non-FICO credit score average of 680.

But how has this changed?

Countrywide reported in August 2008, that the average for their portfolio fell from 715 to 680. But, they were quick to point out that this was over the 620 score considered by many analysts to be above sub-prime.

Plus, according to the TrueCredit website, the average person’s credit score varies as much as 40 points between the three credit reporting agencies. So, this is an argument suggesting that one bureau’s average credit score might vary from another bureau. Ugh.

But do average credit scores matter?

You don’t really want to be average anyway. You want to have an above average FICO credit score as long as the average doesn’t get the best rates. Since the best rates are going to people with a 760 and above, you don’t want to be average. Instead you want to model someone with a great credit score to figure out how to make positive changes.

Similar Posts:

• Average Credit Scores – Episode #60
• Why are there 3 Credit Reporting Agencies? – Episode #98
• Are Credit Scores Becoming Less Predictive? – Episode #73
• Average Credit Score Characteristics – Episode #62
• Credit Bureau vs. Credit Reporting Agency – Episode #77
• Credit Score vs. Credit Ratings – Episode #92