topic Re: Average FICO score 692? in Understanding FICO® Scoring

Average FICO score 692?

masscredit — Mon, 15 Sep 2014 00:44:27 GMT

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.”

Re: Average FICO score 692?

Anonymous — Mon, 15 Sep 2014 04:18:40 GMT

intresting topic. but 692 is still low for a lot of people

Re: Average FICO score 692?

masscredit — Mon, 15 Sep 2014 12:21:48 GMT

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.

Re: Average FICO score 692?

taxi818 — Wed, 17 Sep 2014 01:56:20 GMT

@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.

Re: Average FICO score 692?

vanillabean — Wed, 17 Sep 2014 03:31:29 GMT

The average doesn't reflect the distribution accurately; the median does.

Re: Average FICO score 692?

Anonymous — Wed, 17 Sep 2014 15:52:28 GMT

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.

Re: Average FICO score 692?

jim44 — Thu, 18 Sep 2014 05:19:08 GMT

@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.

Re: Average FICO score 692?

Revelate — Thu, 18 Sep 2014 05:23:31 GMT

@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.

Re: Average FICO score 692?

HiLine — Thu, 18 Sep 2014 12:07:39 GMT

The median is about 20 points higher, as suggested by our FICO percentile thread.

Re: Average FICO score 692?

ando35 — Fri, 30 Jan 2015 13:43:13 GMT

Trust me our health care will be third world soon enough. Just like everything else in this country.

Re: Average FICO score 692?

taxi818 — Fri, 30 Jan 2015 15:16:12 GMT

@ando35 wrote:
Trust me our health care will be third world soon enough. Just like everything else in this country.

Maybe you should actually visit the 3rd world. Then come back and make that statement if you think everything here is 3rd world Just saying. Not sure what that has to do with average credit score

Re: Average FICO score 692?

Anonymous — Sun, 01 Feb 2015 04:24:52 GMT

@taxi818 wrote:
@ando35 wrote:
Trust me our health care will be third world soon enough. Just like everything else in this country.
Maybe you should actually visit the 3rd world. Then come back and make that statement if you think everything here is 3rd world Just saying. Not sure what that has to do with average credit score

Re: Average FICO score 692?

bigblue7722 — Mon, 02 Feb 2015 02:32:36 GMT

@Revelate wrote:
@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.

i work at a CU with a direct and indirect lending dept. Repos are at a all time time high and rates just keep on getting lower something is going to burst. Mid 600 people can get decent APR's yes but the dealerships force them into things like warrantys, gap, paint protection (anything that can make them more money on the back end.) I have lost a lot of deals because the dealerships will not give the same "final price" unless they use the bank that the dealership selects. Dealerships are in such competion i have heard of them making two free payments, giving 1k, ect just to finance with their banks. I dont work in a dealerhsip but most of our inderiect lending is to 750+ scores and we do quite a bit of it. Im not sure how the poster would know what the peoples credit is like if they are paying cash because it is rare the dealership would pull their credit. The loan to value ratios are unreal on some loans lenders will approve. Dealerships make so much money on someone putting no money down on a car then someone hates the car trades it in within a year or two. Their loan is sitll worth say 20k they bought the car for 22k but the dealerhship gives them 13k for a trade. It happens all the time. My reccomendation if your gonna buy a car make sure you like it and take your time!!