The three major credit bureaus in the United States —Experian,
TransUnion, and Equifax—use their own version of the FICO score in calculating
a person’s credit score. Since scoring systems of every credit bureau are
slightly different, a single individual can have different scores. To avoid
confusion, most lenders use the person’s middle score for reference.
The factors that affect your credit score are the following:
• Payment history
• Outstanding debt
• Length of the credit history
• Type of credit received
• Frequency of new credit applications
Your payment history accounts for 35% while your outstanding
debt makes up 30% of your score.
Average credit scores based on FICO Score
If you want to know your average credit score, you have to
factor in the total value of all your credit scores and divide it with the
number of scores you’ve ordered. The FICO score provider, on the other hand,
makes use of a scale ranging from 300 to 850. A score of 320 can be very
disappointing while a credit score that’s between 850-900 seems to be very
healthy. The average credit score is 678, though many lenders consider those
scores that are around 670’s reasonable.
However, you have to bear in mind that what’s considered as
an average credit score in some states may not be of great use in other states,
so it’s advisable that you strive to get a reasonably high score. This way,
you’ll have better chances of getting approved for any loan or credit card
application. You can also have access to the best deals and offers the lenders
may give.
More tips on how to rebuild your credit visit, www.rebuildingyourfuture.com
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