Why has the NATIONAL Average FICO Score NOT dropped from 680?

[haulingthescoreup]

Last I saw, FICO was saying that the average is in the 720's somewhere.

But averages (medians, means) just exist as potentials until someone crunches the numbers, just like your FICO scores, which don't exist until you or someone else pulls them.

So it's entirely possible that this figure would be lower if someone ran the numbers.

[Anonymous]

It is impossible for that score to be accurate.Fair Issac(FICO) makes $$$$$ from keeping our scores down, via kickbacks from credit grantors. Therefore, by "marketing" a higher average score, we all believe our credit is sub-par, and thus pay more for credit. I have a mortgage for 5 years, 5 car loans paid, amex, visa, etc all paid no baddies, and I generate a 649...so I am below average??? Doubt it! Stand up and fight the establishment, tell your senator, or congressman, regulate the credit buraeus.

FYI..All 3 Scam Bureaus have a special departmet devoted to fixing/cleaning members of law/government/celebrities reports. Sounds like big bull*&^% to me!

[cobra19]

I believe msn had a blurb a few days ago that the average score is now 692. 1 year ago, it was about 720. Have no idea if these numbers are accurate or if FICO even puts out an average score. But, it makes sense that with the flood of foreclosures, pre-foreclisures, increasing cc debt, the average score would drop.

[athensguy]

---

@cobra19 wrote:

I believe msn had a blurb a few days ago that the average score is now 692. 1 year ago, it was about 720. Have no idea if these numbers are accurate or if FICO even puts out an average score. But, it makes sense that with the flood of foreclosures, pre-foreclisures, increasing cc debt, the average score would drop.

---

FICO normalized their scores to 723 and still notes that the median is 723. I do not know if it's updated.

[Anonymous]

Though unpublished, the FICO score range has a wider distribution below the median than above the median. As a result the mean is likely below the median, perhaps by 40+ points.

Think about this - if the median is 723 and the 99th percentile is 840ish, that is only 117 points above mean. The 1st percentile is maybe 400 to 450.....around 300 points from the mean. In a mean calculation, the lower credit scores have triple the effect. 

[RobertEG]

Discussions of mean or median FICO scores necessarily dropping presumes that the FICO algorithms are static.  FairIsaac has said on many occasions that they continuously update their algorithms to fit their scoring range as comparative consumer data changes over time.  So their benchline of yesterday may not be their same benchline of tomorrow.  Only FI knows the answer to this.

[Anonymous]

That is my point if the score changes in a fluid way as our credit scores do month to month, those who are tending to their credit right now should be seeing greater gains in the score do to the drop of scores nation wide. The gate has to swing both ways, in time of a secure credit market the base line score should be greater, in times of credit fall out the base should / HAS to drop. Just cant stay the same. Thus my 700+ now SHOULD be stronger than my 700+ a year ago.

[Anonymous]

Changes to the formula don't occur that often and when then they do they are not accepted that quickly. That is why the 2004 TU formula has only recently become used by more than half of lenders.