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?
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.
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.
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 .