Thursday, October 04, 2012

Uncle Sam's FICO Score

If the U.S. Government were applying for a loan, what would its credit score be?  ConvergEx's Nick Colas estimates it at 655, which is not too bad or too good.  By the way, the average person’s credit score is 655 to 690, according to Credit Karma.  Therefore, our government has a score that is better than 42% of Americans if we assume a normal distribution to all those credit scores.  (See the following Bar Chart.)  Unfortunately, the average credit score you will need to get a mortgage is between 764 or 770 if you want to refinance, which of course leaves the U.S. Government out from refinancing the "White House."  However, all is not lost, because Uncle Sam still qualifies to buy that new GM car, or better yet, buy the Volt and get the $7,500 tax credit.  Go for it, Uncle Sam!





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