The Average FICO Credit Score of 680 is Only Considered Fair-to-Good But not Great

The average FICO credit score in the United States is 680.

Although this number is considered moderately high, it may not be good enough to obtain a home mortgage loan in today’s tight lending market.

A loan broker will look at several other factors, chiefly income and length of employment at one company, before approving a loan at this score.

And if someone does acquire a loan with this credit score, they should not expect the best rates available.

Fair Isaac, the FI in FICO credit scores, rates the median score at 723 in the United States.

The average score is taken as an average of all scores, whereas the median is the point where half of rated consumers are higher and half are lower.

That translates to mean that half of all American consumers have very good scores and among the other half there are some very low scores.

723 is in fact quite good; a CBS report stated,

“If your score is 720, there’s really no need to try and raise it because lenders lump you in the same category as folks with a score of say 800 or 820.”

Average is Less Than Average

So what can those of us with a score of 680 expect when we apply for a loan?

With an average fico credit score one can expect to wait longer for ones loan to be approved.

Brokers will do enough research to satisfy their requirements, which are more stringent with a lower score, and may have to shop around more for you to get you a loan at all.

Consumers can count on paying higher interest rates than someone with an excellent score.

2nd Class

The fact is, an average score means consumers will get less than average satisfaction.

With an average fico credit score many consumers will be treated as a second-class citizen by the large majority of lenders out there.

Ones loan broker will be an exception; he or she wants to satisfy us and get the fat commission, but he or she is not usually a part of the institution that will actually lend us the money.

This doesn’t apply exclusively to home loans either; auto and other loans have all gotten harder to acquire with our current tight economy.

Consumers can expect to pay somewhere near the maximum interest their state will allow for a car loan from a used car dealer, and only slightly less from a new car dealer.

More to Life

Getting a loan is not the only thing a credit score is used for.

An average fico credit score can affect our ability to get an apartment and even a job.

The companies that will only count a credit score as a small part of an applicants picture are getting fewer every day, especially in today’s difficult economy.

Job hunters, especially, face severe challenges in today’s tough job market. Those with higher credit scores are considered more trustworthy, even though the truth could be exactly the opposite.

The fact that someone has avoided debt and saved money to get what they wanted could actually be a serious drawback in our mixed up modern world.