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Frequent Contributor
Peter1142
Posts: 348
Registered: ‎08-17-2013
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Average Credit Score

A 700 credit score is only 40th percentile? I find this hard to believe. That means more or less that the average American has no collections, no major lates, very low credit card balances, and a significant credit history, and thus has excellent credit.

 

Is this really true?

Community Leader
Valued Contributor
user5387
Posts: 1,794
Registered: ‎07-01-2010
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Re: Average Credit Score

Frequent Contributor
Peter1142
Posts: 348
Registered: ‎08-17-2013
0

Re: Average Credit Score

MyFico is telling me my 708 is 44th precentile.

 

Considering how hard it was to get this, and how the score simulator says there is little I can do to improve it significantly at this point besides wait for many long years, nevermind the state of the econmy over the last 5 years, I really find this hard to believe.

Community Leader
Valued Contributor
user5387
Posts: 1,794
Registered: ‎07-01-2010
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Re: Average Credit Score

1.  Lots of older folks with very high scores, and not doing much with new credit.

 

2.  If a person avoids overt negatives, then high scores are relatively easy to achieve, because the other big factor beyond payment history is utilization, and it has no memory.

 

Moderator
Revelate
Posts: 9,731
Registered: ‎12-30-2011
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Re: Average Credit Score

[ Edited ]

They're looking at FICO '08 scores on this: anecdotally it appears to have been designed to be more forgiving on older issues, and more harsh on more recent ones.

 

From my own personal experience, it means anyone with a bunch of negatives from 3+ years ago, and pure positive history for 2 years, can be right around around 710-720 with proper credit report management at least on the EX and TU '08 scores I actually look at.

 

FICO '04 / EQ Beacon 5.0, not so much :smileyhappy:.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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