Average Credit ScoreCredit rating (average)
. When your credit rating drops above 720 points, it is deemed high. A bad credit rating can influence your lifestyle in several ways, from the difficulty of renting an accommodation to the negative impact on your interest rate.
Creditworthiness of the average American has increased in recent years, reaching a high of 700 last year. However, this large average conceals a broad spectrum of age-related factors. According to a new FICO study carried out for MONEY, there is a 91 point gap between the averages of those in the oldest group of customers and those in the youngest group.
The average value rises by about 20 points with every ten-year period. The FICO is the most widely used credit score, a number that is used to quantify the individual financial standing of people. The values vary from 300 to 850, and anything over 720 is regarded as outstanding. Most importantly, 65% of the score is due to punctual payments and "credit utilization" - how much of the available credit you consume.
Over half of consumer had a score of over 700, according to the FICO results in April 2017. What is your credit score compared to the average for your group? The average values here are by old-age, as of April 2017:
What? Latest updates
Learn more: Credit reports: everything you need to know. Information bureaus can help you get a picture of how your request could be seen by creditors. As a general guideline, the higher your creditworthiness, the higher your chance of getting the best loans.
Below are some actions you can take to enhance your credit rating. If you are not on the voters list, it is very hard for you to get a loan. When you apply for credit, you are leaving a "footprint" in your credit history that is viewable to other creditors. When you have been rejected for credit, it is best to refrain from requesting another credit-based products for a while.
You can do this by paying back your loan on term and stay within your credit line. Unless you have ever lent before, you may find it hard to get credit and debit/credit card credit, especially those with the lowest interest rate. Removing a credit or debit card specially developed to help you set up (or restructure) your credit or debit histories is one of the solutions.