Your credit score is a three digit number between 300 and 850. It is designed to give creditors a statistical representation of your credit risk. There was a time when your credit score didn’t matter that much, because creditors used “common sense” underwriting.
Today, that has changed. Your credit score is the single greatest factor in determining whether you will be approved for a loan.
You may be like millions of Americans who have been hit by these hard economic times. If your credit score is slipping, you may be wondering how low your score can go before you start panicking.
Just what is the average American credit score?
While some reports state that the average credit score is as high as 724, according to Experian, the national average credit score is actually 680. While at one time, you could do just about anything you needed to with a 680 score, the credit crunch has lead to a tightening in lending guidelines. Today, anything over a 700 is considered an excellent score.
So does this mean that the average American has “bad” credit?
No. While the average credit report score is 680, 58% of American’s have scores that are above 700.
It is interesting to note that average credit scores vary widely by state. Texans have the lowest average credit score rating of 651 while the residents of South Dakota are the proud owners of the highest average credit score of 710.
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