Average credit score

Credit score is an important indicator of your financial health. It helps lenders and creditors to find out your repayment capacity and your chances of paying back the loan. Credit score ranges are worked out depending on your past financial habits. It also determines whether you qualify for getting fresh credit. There are various advantages of having a good credit score. And if your credit score is damaged, the consequences are worse.

There are several factors that make up your credit score. These are usually referred to as the components of your credit score. They are as follows –

1. How regular you are in making payments?

Your payment history is important and it makes up 35% of your credit score. You have a good credit score if you have been regular with your payments. Low credit score indicates that you may have filed bankruptcy or foreclosure.

1. Variety of credit you owe

This component makes up 10% of your credit score. If you have a variety of credit, it implies that you are capable of handling cash well.

1. How much credit do you use?

How much of the available credit have you used? This is another component that affects 30% of your credit score.

1. Duration of credit availed

Duration of your credit makes up 15% of your credit score. If you have used credit for a long time and with the same creditor/lender, it has positive effect on your credit score.

1. Outstanding amount

The amount you owe to your lenders/creditors make up 30% of your credit score.

What is the average credit score?

Credit score ranges between 350 and 900. In United States, the average credit score is usually 740.

Credit score ranges	What does it imply
Below 619	Poor or bad credit
620-659	Fair credit
660-719	Good credit
Above 720	Excellent credit

Credit scores are usually prepared by 3 credit bureaus namely, Experian, Equifax and TransUnion. You are entitled to get a free credit report from the 3 credit bureaus once a year.

If your credit range is good, there are many financial benefits that you will be able to enjoy. However, if your credit rating is bad, you may be refused employment, you will not be able to rent a premise of your choice, your insurance carrier may not want you to give favorable rates etc.

However, there are many ways by which you can improve your credit rating over time. It is important to remember that there are no shortcuts to a debt free life or there are no quick fixes to improve your credit score.  Legal credit repair takes time.  If you take a legal and systematic approach of improving the same, your financial stability will last longer.

Are you wondering if credit card debt settlement is right for you?  Or are you struggling with student loan payments and wondering what the best alternative for you is?  If so, why not enroll now in Credit Repair College’s membership program.  We will teach you everything from how to get an after bankruptcy mortgage loan to strategies for dealing with credit cards debt.  We will even teach you how to get an unsecured credit card for bad credit regardless of what your credit looks like right now.  Of course, you will also learn everything about credit repair – we will teach you step by step how to repair credit better than a pro using audio and video training.

Tagged as: Average credit score, credit score ranges

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