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I receive a credit e-mail newsletter once in awhile. This was in the one that I received tonight -
The average FICO score among American consumers hit an all-time high in April at 692, up one point from the same time last year and six points higher than the low point of 686 in October 2009. The credit scoring company has been tracking the average consumer FICO score since October 2005, releasing updated averages every 6 months.
As far as FICO scores go, 692 is on the high end of average, as the scale ranges from 300 to 850. Anything between 700 and 749 is generally considered a good score, with the best scores ranging 750 and higher. Since the average bottomed out at 686 in 2009, it has generally trended upward, returning to its pre-recession high of 690 in April 2012.
Anthony Sprauve, senior consumer credit specialist at FICO, said there’s no way to definitively say what drove the improvement, but it’s likely tied to consumers’ better sense of financial responsibility post-recession.
“After the recession, consumers have become better stewards of their financial house; they’re paying more attention to their finances,” Sprauve said. “They’re more educated and more aware, and I also think there are fewer confusing financial products in the marketplace.”
intresting topic. but 692 is still low for a lot of people
I thought so too. But maybe as a whole, the average score isn't as high as we'd thing it would be.
I was in a car dealership a couple of months ago and overheard a conversation behind the desk. One of the guys said that the average score of most people that come in is in the 600 range.
@Anonymous wrote:intresting topic. but 692 is still low for a lot of people
yes but think of the millions of people in the 500s . that mean there are a hell of a lot of scores in the 800s to bring the bottom tier up. if 692. in fact i beleive that artticle stated. 692 is the highest in american history. so not bad.
The average doesn't reflect the distribution accurately; the median does.
All of my scores are within 5 points of 692.
AAoA right around 6 years, perfect payment history, 3 revolvers, 1 installment, 5 closed installment loans, and one closed utility loan.
Only Derog is a medical Collection from 2011.
So if the average American pays their bills on time, but eventually gets screwed by our first world medical system and its third world billing systems, then it makes sense to me.
@masscredit wrote:I thought so too. But maybe as a whole, the average score isn't as high as we'd thing it would be.
I was in a car dealership a couple of months ago and overheard a conversation behind the desk. One of the guys said that the average score of most people that come in is in the 600 range.
I work for a car dealership and I agree that most of our customers who request financing are in the mid to upper 600s. In my experience usually customers with scores in the upper 700s to low 800s don't finance. It is suprising that customers who are approved with mid 600 scores usually get decent aprs. Factors do include answers to any baddies and medical/student loan collections.
@jim44 wrote:
@masscredit wrote:I thought so too. But maybe as a whole, the average score isn't as high as we'd thing it would be.
I was in a car dealership a couple of months ago and overheard a conversation behind the desk. One of the guys said that the average score of most people that come in is in the 600 range.
I work for a car dealership and I agree that most of our customers who request financing are in the mid to upper 600s. In my experience usually customers with scores in the upper 700s to low 800s don't finance. It is suprising that customers who are approved with mid 600 scores usually get decent aprs. Factors do include answers to any baddies and medical/student loan collections.
That's interesting!
Few questions: first what do you consider decent APR (ballpark)? Second, are those with high scores paying cash or do they have financing pre-arranged? Last, do you know if the scores are auto-enhanced industry option or just the usual run of the mill classic FICO?
I'm not terribly surprised if you're talking mid single digit APR's being decent (I'd guess it's around ~5% for a 640?), auto loans being secured and comparitively low dollar amounts (compared to mortgages) suggest they're a pretty safe bet in current economic conditions.
Trust me our health care will be third world soon enough. Just like everything else in this country.