Lenderama Mortgage Blog

Is the average credit score really 678?

The national average credit score is around 678, but is that really accurate? I would have guessed it to be much lower, but we’ll get to that later. Here is a chart that breaks down the national distribution of FICO scores.

This chart represents a good, old-fashioned example of how statistics can accurate but misleading at the same time. The numbers above are accurate, but let’s delve a bit deeper. Let’s look at a break down of credit scores by age group.

This chart gives us a whole new perspective on the meaning of “average credit score.” We see here that borrowers over the age of 50 have fabulous credit scores — 697 and up, on average. If all your clients have silver hair, you’re sitting pretty. For the rest of you, credit score is an issue, an impediment to crossing that real estate finish line known as closing.

The reality is that old folks don’t drive the housing market. The typical age of a home buyer is 41. The median age of first-time home buyers is 32. Younger people make up most of the home buying population.

After all the number crunching, average credit score for the population is not the same as average credit score for home buyers. Generally speaking, the younger the home buyer, the lower the credit score.

This means that credit score is important to borrowers, mortgage brokers AND real estate agents. One of the best things that real estate professionals can do is to educate themselves about credit and credit score so that they can help their clients preserve and raise their credit scores.

Posted by: Wade Young Red Door Home Loans

November 30, 2007 by · 15 Comments



15 Responses to “Is the average credit score really 678?”
  1. Paul says:

    Excellent post Wade!

    As a side note, I reference that chart at myfico.com myself and I wish they would update it.

    You’ll notice below the chart, they reference the EMPIRICA TU model. It’s been called TransUnion FICO Risk Score, Classic since August 2004. So they’re more than overdue for an update on credit score stats.

    Average credit scores have more than likely declined since publication of those stats.

    Do you think Fair Isaac would rather sell more product to people who felt they were ‘less than average’ then to update the stats to reflect the deterioration?

  2. Wade this is an excellent post. I have worked as a credit consultant since 2000 primarily with clients that have credit scores in the mid 500 to mid 600 ranges. In today’s market you really need to work towards a 740 score to take advantage of minimal interest expense as well as insurance premiums.

  3. Who said that the average is 678?

  4. Samantha says:

    We used the credit repair specialists at http://www.newdaycreditconsultants.com
    We have a credit score of 745 now.

  5. Carl Pruitt says:

    As an FHA specialist, I’m ecstatic to see a score above 600, yet I have very few defaults. Given that much of the subprime lending model over the last few years was built on credit scoring, I’m starting to doubt it’s usefulness!

  6. Glynis Shaw says:

    I have just started working for a company called Texas Credit Restoration Alliance. What we do is help your customers raise their credit scores on all 3 bureaus on average 127 points in 30-90 days. Our lawyers challenge negatives on their bureaus like credit card debt, student loans, bankruptcies, reposessions etc. and get them completely removed from all 3 bureaus thus raising their scores. You can visit our website and look at our program. We are registered with the Better Business Bureau and are endorsed by the Mortgage Times and Real Estate news. I would love any feedback on how to promote this business on blogs and anywhere else you think it would be helpful. Any comments will be appreciated.

  7. Wade Young says:


    Your company’s web site only has 6 backlinks. That’s not near enough to ever get you rankings in the search engines. You need to focus on web site optimization. I wrote a post a while back about SEO which is a good place for you to start:


    Also, your company should start a credit fix blog. Blogs are more easily indexed by the search engines and a blog will also provide backlinks to your website.

    Good luck.

  8. Glynis,

    First off congratulations on getting involved in the credit repair industry. The credit repair industry is a very much needed source for reputable companies. I reviewed the information on your company’s site and my opinion after being in the credit repair industry for over 8 years (certified credit consultant through Central Michigan University) is that $1000.00 (approximately) is an extremely tough sell for clients that have credit issues. The monthly fee is really the issue here. Our program charges a one time fee for unlimited derogatory and as well is a member of the BBB with zero complaints. One of our major clients is Quicken Loans which provides our corporate office with about 300 leads per day. We have also established a CUSO and our affiliated with a Federal Credit Union (probably the only credit repair company affiliated with a Credit Union in the nation). Anyway I wish you luck and if things don’t work out for you please me a call. Would love to have you onboard.

  9. Glynis says:

    Thank you mark for your offer. I think I will stay with Texas Credit Restoration Alliance for a while. I would like to have you contact information. Please e-mail me at gds01gds@yahoo.com . Thanks again!

  10. As president of Texas Credit Restoration Alliance I must comment on Mr Bustamonte’s comment. Our price is not unjustified as we offer over 20 member benefits for our members and and also offer the most comprehensive credit restoration service in the nation. Our highly experienced attorneys produce the most comprehensive results of any credit restoration company in the nation and our membership nationwide has over 17000 members in our system as I write. We must be doing something right as we increase our members scores an average of 127 points in 6 months or less and sometimes in as little as 90-120 days. The so called inexpensive credit restoration companies that charge a whole lot less for a whole lot less results. I suppose they know what their service is worth. The monthly fee or the full enrollment is extremely well accepted for folks who are in CREDIT Prison and wish to end the prison sentence with proven results that we accomplish for our members. That is why we refer to our services as credit re-insertion. We re-insert the member back into the credit economy with 127 point average increase scores at all 3 bureaus.

    Sincerely and best regards
    Larry Brumfield
    CEO President
    Texas Credit Restoration Alliance

  11. Glynis Shaw says:

    Credit Reinsertion Program Proves To Be An Alternate To Credit Repair, Wins Industry Praise
    January 12th, 2008

    Texas Credit Restoration Alliance found on the Web has been recognized by two of the housing industries largest electronic publications, MortgageTrends, and RealEstatePro News, as being the company of choice for a consumer who needs help raising their credit scores nationwide.

    C.E.O./ President, Larry Brumfield, a Horseshoe Bay resident and a former resident of Kingsland Texas for the past twenty years is the mastermind behind the company’s success. Texas Credit Restoration Alliance is a membership based association that offers over 20 member benefits to its members, all relating to help the member re-insert themselves back into the credit driven society.

    Credit scores have never been as important as they are in present day time, and TCRA raises the average member’s credit scores an average 127 points at all 3 credit bureaus.

  12. Wade this is an excellent post. I have worked as a credit consultant since 2000 primarily with clients that have credit scores in the mid 500 to mid 600 ranges. In today’s market you really need to work towards a 740 score to take advantage of minimal interest expense as well as insurance premiums.

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