What is the median fico score?

[Anonymous]

I keep hearing about the mortgage crisis, and foreclosures being on the rise,(not just sub-prime either) yet apparently the median score has not fallen. There are states that loan companies won't touch with the proverbial ten foot pole, yet the median score if anything seems to be rising. Does anyone know what this score is today?

[RobertEG]

The median FICO score now , per FairIsaac, is now approx. 720.

[Anonymous]

RobertEG wrote

The median FICO score now , per FairIsaac, is now approx. 720.

As my score creep over this mark, fico still state, your score is a little below average. What slight of hand is this?

[RobertEG]

I think your answer is that their is no such thing as a single "FICO" score.

FairIsaac markets dozens of FICO score algorithms to its custmers.  Each algorithm marketed to the three CRAs, for example, are different.  So you will only get generalizations on your score because the source can vary.

Even if you had identical data at each of the three CRAs, your score could vary by 20 poihts between the agency algorithms.

Message Edited by RobertEG on 07-01-2008 04:55 PM

[Anonymous]

Brilliant,

Wow, I should have thought of that. Now, that you point this out, it seems so clear. Robert you are the man, thanks

[RobertEG]

Fexil what many dont realize it that FairIsaac/FICO does not directly generate the scores you get.  Fair Isaac does not hold the current credit data, the CRAs do.  FairIsaac sells their scoring algoirhtnms, in whatever flavor de' jour, that their customer requests.  The holder of the data then generates a "FICO" score of their purchase based upon their licensed authorization to call it that, but based on their data only. 

But also be aware.  FICO is the standard used by most lendors.

CRAs, and other vendors, have also devolped their own scoring algorithms, which they widely market, thru "3--one" sites, through CCCs, and on TV, which may not be FICO scores.  The three CRAs joined a few years ago to develop a scoring algorithm to compete with FairIsaac, that they called Vantage Scores.

I dont attest to the merits of one over another.  I can only just attest that FICO is the industry standard used by most lendors, and myFico is the only source for giving you FICO scores from eqch CRA  But they will differ.

Message Edited by RobertEG on 07-01-2008 05:30 PM

[Anonymous]

The median may be nearly unchanged in the current credit climate, but I would bet that the mean FICO score has gone down. As lines are lowered, lates registered, accounts defaulted on, homes foreclosed etc, more people are being shifted to baddie buckets or falling down to the lower part of scoring curves. It may only effect 2-5% of the population, but that will drop the mean score, without necessarily moving the median score.

It is important to remember that FICO is meant to predict major delinquint behavior or loan default within the next 2 years - maybe not a large minority, but likely at least an additional 2-5% percent of the population now has an increased likelihood for that very possibility.