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Credit Score – Facts in Nutshell

Credit Score Fast Facts:

  1. The average American has 13 credit obligations (mostly credit cards and loans).
  2. Forty percent of credit card holders carry a balance less than $1,000.
  • Fifteen percent have total credit card balances of $10,000 or more.
  • Less than 50 percent of people have ever been 30 days late or more on a payment.
  • Thirty percent have been 60 days or more overdue.
  • Twenty-three percent have had a loan or account 90 days or more past due.
  • Less than 20 percent have ever had a loan or account closed due to defaulting on payments
  • Source: www.myfico.com

    What is a FICO score?

    A FICO score is a credit bureau risk score produced from models developed by Fair Isaac Corp. to be used by lenders to assess the credit risk of prospective borrowers. The scores are derived solely from information available on credit bureau reports.

    Where are you in these facts?

    Related Posts:

    Lowest Credit Scores in History?

    Mid-Week Quickie

    According to the associated press…

    “More than one in four Americans now has a FICO credit score below 600, which is considered low, and could have difficulty getting credit cards, car loans and mortgages.

    Statistics released from FICO Inc. show that 25.5 percent of the 170 million Americans with active credit accounts have scores of 599 or below on the 300 to 850 scale, based on data from April consumer credit reports. The median score is 723.

    The data also showed that 2.4 million more people have fallen into the lowest FICO categories in the past two years. Historically the rate of people with scores of 599 or lower has been around 15 percent.”

    Folks reading this should be alarmed. It is very important that we all take ownership of our credit and debt lives. Most likely we are one of the consumers whose credit score has fallen into the low range.

    If you are serious about making changes it is suggested you start doing something about it by reading all present and past blog posts of mine as well as visit my website CreditMania.com.

    Stay tuned to a series of posts related to credit scores and credit scoring.

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    Credit Report 101

    Your credit report is a compilation of your financial transactions, payment histories, and other personal information. All of this information is tracked closely in order to calculate a credit score that is used to determined if you are a good credit risk or not by banks and credit lenders. Typically the better the score the less risk you are. For unsecured credit this score is the primary driver of whether you are approved or denied. In secured loans such as houses, cars, and other large ticket items the credit score is only variable in the decision making process. Just know it is important to know your score and how to improve or rebuild it when needed. At our sister website CreditMania.com we have a full explanation of improving and or rebuilding your score.

    Fact:

    “Over 70% of consumers identify errors on their credit reports and 25% of those are serious enough to deny consumers access to credit, preferred interest rates, and or even a job.” It is vital to make sure your report is up to date and accurate!

    Key Suggestions:

    Obtain a copy of your credit report and review for accuracy of the information.
    Under federal law you are allowed one free copy of your credit report each year from the three major reporting agencies. Log onto www.annualcreditreport.com for more information.

    Be careful of making large purchases right before applying for a home loan.

    If you find you can’t make a payment on time please contact a lender to make other arrangements before it is too late!

    Don’t fall for scams that claim they can instantly fix or raise your credit scores. Only time and consistent payment history and constant watching for accuracy will improve your score.

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