What is the average credit score?

Last month, in what seemed like a big scoop over its rival news agencies, the associated press reported that, now, 25,5% Americans are FICO scores less than 600.  However, the rating model that the report is a new score, FICO 8 (BEACONS), which are not sanctioned by the two big housing finance agencies, nor even that sold to consumers from the main company rating.  The story is stuck.  Following questioning by creditscoring.com, FICO (company) removed FICO (the score) distribution charts from its Web site.

This month, rival news agency Reuters has struck back. on Friday, the story consumers credit debt, Scorning ratings soar, "Helen Chernikoff wrote," the average credit score rose in 704 in July, a level not seen since the first quarter of 1998, according to Equifax Inc (EFX. N), one of the largest credit USA offices provided exclusively in Reuters. "

Bet on what the model is unclear. Article 850 is the highest score, but there is no reference to the lowest. Thus, the average person, the model might look like the broad-based credit Bureau risk FICO score 5.0 warning SiMATOS available to consumers at myFICO and required by Fannie Mae and Freddie Mac.

Or, it could be something else.

This is because the consumer reporting agencies play a childish manner or game with numbers, create credit scores with scales similar to that of the known FICO score, 300-850. TransUnion still makes one, called Transrisk, which have exactly the same scale as the FICO – 300 to 850. also exists in the Experian (330-830) and, in the case of the company, which is the subject of great exclusive Reuters story, there is the Equifax Risk score 3.0 (280-850).

August 16, 2010 • Tags: average, Credit Karma, criticism, definition, Fake-O, Media, Reuters, TransUnion • posted in: sufficiently to Dangerous, Equifax, TransUnion, Media

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