Average Credit Scores

Average Credit Scores

How do you stack up?

Now more than ever, U.S. consumers are acquiring more credit and checking credit online. Because of the increasing number of auto loans, mortgages, and credit card balances, the U.S. would seem to have a low national average credit score. But, it's actually in the neighborhood of 680, which isn't exactly poor. Credit experts feel that having debt isn't necessarily bad - it's all in how your credit is managed, as to how your credit score will be affected. So while consumers have more debt than the year prior, and a quarter of the country has more debt than the national average - apparently we manage debt fairly well, as our average score is hanging in there.

Have you taken a recent interest in your credit score? What was it that made you open your eyes? An overdue bill? A collection agent? A possible new purchase or lease? No matter the reason, you should always know your credit score. But if you don't know what credit scores mean, it's not very helpful. Before you get your credit report and credit scores online - it might be valuable to see the typical credit score of other states.

How does your state look?

Find out using the credit score chart below:

Credit Score Ranges

Most scores range from 300 to 900, with the majority of people in the 600 to 800 range. To get the most favorable interest rates, you'll need a score of 720 or higher. In terms of interest rates, a person with a credit score of 520 will get interest rates on loans that are three to four percentage points higher than rates given to a person with a credit score of 720.

Factors that can damage your credit report include late payments, an absence of credit references, and unfavorable credit card use.

The first step to improving your credit score is finding out what it is. Then you can take the necessary steps toward a better credit score.

  • Five Steps that Can Improve Your Score

  • Check for mistakes on your reports, such as those made regarding late payments, etc.
  • Be sure to pay your bills on time.
  • Keep your balances at or below 25% of your card limit.
  • Don’t transfer balances, pay off your debt.
  • Refrain from closing unused card accounts around loan time.

For more information on how to check your credit report, or how to instantly get your 3 in 1 credit report, FREE credit score, and identity theft insurance, go to www.CreditReport.com now!