The average credit score

The average credit score
Nobody wants to be average and less so when it comes to being financially attractive. But unless you known the average credit score, how are you going to know how good or bad you are? How are you going to stand up to all that competition for getting the loan you want? Knowing the average credit score is thus essential if you want to assess your own true worth.

In credit ratings, the average is the number which separates the top half of consumers from the bottom half. This basically means that half of all the consumers have credit scores which are considered excellent while the other half lies in the bottom. The Fico score is the market leader of credit scores and the majority of banks and financial institutions use its scores to decide whether or not to lend money to individuals. If you have a good Fico credit score, chances are, your loan or mortgage will be sanctioned. Vantage Score is another reputable credit score provider.

The average consumer has 13 credit obligations to his name. These 13 may be credit cards in the form of debit cards, store charge cards and gas cards and installment loans such as mortgage, loans, house loans, student loans and auto loans. It has also been found that out of the 13 credit obligations, 9 are usually credit cards while the other 4 are installment loans. On an average, consumers try and pay their bills on time.

When credit bureaus studied the average credit score, they also found that less than 50% of the consumers were occasionally late by 30 days or more in making their credit payments. Only 3 out of 10 consumers have never ever been late by 60 or more days on any of their credit payments. 77% of consumers had never had a loan from a bank or financial institution that was 90 or more days late. As can be seen, the average credit score is not really bad. The higher one’s credit score is, the greater your viability for getting a loan.

It may interest you to know that the average credit score of consumers in the Unites States is 723 and the perfect score considered in 850. The nearer you are to the perfect score of 850, the better your credit score is. The credit score of an individual is a ready reckoner about what kind of risks are involved in giving him a loan.

A person with a higher credit score will decrease the risks involved in giving out a loan and will also get better returns and better interest rates. If you can manage to keep your score above 700 at most times, you can be assured of getting lower interest rates and loan rates than those whose rates are perpetually lower than 700. If you already have a good credit, ensure it stays that way. If you have a bad credit, try your best to repair it as much as possible.

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