What is the average american credit score
Your credit score can greatly affect your life either in a positive way or a very negative way. Your credit score is what will determine if you will be approved for a loan or credit and it also plays a very big role in the amount of interest that will be charged by your creditors. Your credit score can even effect your employment. Only a small change in your credit score can make a huge difference to how your potential employers or lenders will consider you. According to Experian, which is one of the three major credit bureaus, the average American credit score is 692 out of 800. This figure is actually considered to be on the low side of a good credit rating but with an average score of 692 you will still be able to get a reasonably good interest rate on a loan.
The next level up from this average credit score is a score of 720. When you reach a score of 720 you are considered to have an excellent credit score and you will qualify for loans and usually at a very good interest rate. Knowing your credit score can help you to keep track of your credit and maintain a good score. If you believe your score to be slipping then you can work to improve that score again. With a good credit score you can comfortably set goals for the future knowing that you will save a lot of money on interest for any loans you take out.
A credit score of over 692 will usually still qualify you for a loan so if you are in the average range for your credit score you can either be happy with that and accept that you will pay a higher interest rate on your loans, or you can work at raising your credit score and try to get it up to the next level so that you will then qualify for lower interest rates.
Here are some ways that you can improve your credit score.
1. The best and easiest way to have a good credit rating it to always pay your bills on time. Around 35 percent of your total credit score is based on how timely you are in paying your bills.
2. Around 30 percent of your credit score is based on the balances of your accounts so it is good to keep low balances on your accounts. If you can aim for 50% or less of your credit to be used up it can make a big impact on your credit score.
3. If you pay your bills on time over a long period the better you credit score will be. You can't change your past but you can certainly work toward a better credit future. You can also work with your children and teach them the importance of a good credit score so they can get a good start on their own credit rating.
If you have many sources of credit this can be an advantage if you manage them all well. However if you don't manage your credit sources well it can disadvantage you. Credit variability will account for 10 percent of your credit score.
Too many credit cards can have a negative effect on your credit score so don't sign up for too many cards. Don't just sign up for a new card for the purpose of one purchase, only apply for credit cards when absolutely necessary. Whether you are above or below the average American credit score, keeping an eye on your rating can help you improve your score when necessary. Remember these tips for how you can increase your credit score and enjoy the benefits it will bring.
TAGS: average american credit score, what is my credit score, what is the average american credit score
Article Source: Messaggiamo.Com
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