Credit scores vs. Delinquency Rates

[Elisha]

Just out of curiosity, does anybody knows what is the delinquency rates compared to one’s Fico score? And what does exactly is delinquency rate anyway?

[Gerry]

Re: Delinquency vs. Credit Score

According to Fair Isaac (the company that invented FICO), delinquency rate is the probability that you will make a payment 90 days late or worse (e.g. bankruptcy) in the next two years.

They also provide the following example of delinquency rate distribution vs. consumer Fico scores.

For example, FICO predicts that consumers with a FICO score under 500 have 87% probability of being 90-days late on payments or worse in the next two years.

On the other end of the scale, FICO predicts that consumers with FICO score 700 and higher have only 5% probability of being 90-days late on payments in the next two years.

Precentile	% Of People	Score	Delinquency Rate
2 nd	2 %	300-499	87 %
7 th	5%	500-549	71%
15 th	15%	550-599	51%
27 th	12%	600-649	31%
42 th	15%	650-699	15%
60 th	18%	700-749	5 %
87 th	27%	750-799	2%
100 th	13%	800-850	1%

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