Fair Isaac

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: There is a new article posted on the Fair Isaac site.  It talks about the "average" consumer.  This is not perfectly accurate, of course, what they selected to provide was information on the average consumer that was granted new credit, which is even more helpful.

: The average person who obtained new credit recently had 11 obligations on their credit report.  Seven credit cards and four installment loans.

: More than 60 percent of people that obtained new credit were never late.  Eighty percent had never been late more than 30 days.  Eighty-five percent had never been 90 days late.  Less than 10 percent of the people given new credit had a charge off or collection account.

: Almost 50 percent of the people that were approved owed less than $1,000 on credit cards.  More than 90 percent owed less than $10,000 in revolving debt.  More than 50 percent owed less than $5,000 on all obligations (excluding mortgage).

: More than half of those approved had less than 30 percent of their revolving credit limits used.

: The average (mean?  median?) approved person had 13 years of credit history.  More than 90 percent of the people approved had at least 2 years credit history.

: Finally most approved consumers had only one inquiry on their credit report in the past year.  Ninety-four percent of the people approved had less than 4 inquiries.

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: I guess the mystery is solved.  Seven is the correct number of credit cards to have, one is the correct number of inquiries and if you use more than 30 percent of your credit rating you are not sufficiently conservative in your credit use.


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