Average Credit Score Information – CreditReport.com
When you order a credit report from one of the three national credit bureaus, you receive basic information about your credit history. This information is used by lenders to determine whether you're a good risk for a loan or a line of credit. Your credit score is not part of your credit report. This score is calculated based on data in your report. The first credit score model was developed in the 1950's, and many other scoring models are in use today.
An average credit score can range anywhere from 150 to 990 points, depending on the scoring model. This average score is based on your payment record, length of credit history, types of credit, and other factors. If you want to improve your credit score, you need to pay your bills on time, address any errors in your report, pay down your debt, and limit your applications for new lines of credit.
Negative information stays on your report for up to seven years and may include late payments to creditors, liens or judgments against you, and delinquent payments. According to a recent study, the people with the best average credit score in the country are the residents of Minneapolis, Minnesota. Other high scoring cities include Seattle, Detroit, and Washington, D.C.
If your credit score should fall somewhere below the standard, you may notice the process of applying for a loan or a line of credit is more time consuming. You may also be subjected to higher interest rates and more stringent terms and conditions from lenders. Once you know where you stand, you can get started on making those small changes that make a big difference over time.
Tips To Help You Improve Your Credit Score
Make Sure that You Pay Your Bills on Time
Your credit history can be adversely affected by delinquent payments, which can thereby have a huge negative impact on your scores. For your scores to be at an optimum, make sure you pay your bills within the predetermined time frame.
Make Up for those Missed Payments
On occasion unavoidable circumstances make timely credit payments impossible. Should you be in this position, make sure to get current on your payments to pay off your credit in a timely fashion, as this has a positive impact on your credit score.
Remember that Your Credit History Spans Back Seven Years
Paying off a collection account will not immediately improve your credit score, but will remain a part of your history and could affect your scores for up to seven years.