Average American Credit Score

The credit score of all Americans can be found in the three major credit bureaus that hold their records: Experian, Equifax, and TransUnion.

Each of these bureaus has its own version of the FICO (Fair Isaac Corporation) score, and each one’s method of computing for it is different. The results are obviously slightly different from each other so what credit card companies do to get the average American credit score is to use the middle score.

Although a credit score is based on a number of factors, the ones which have the most impact are payment history (35% of the score) and outstanding debt (30% of the score). Other variables include credit history which makes up 15%, mix of accounts which makes up 10%, and inquiries which make up another 10%. The perfect FICO score is 850. However, credit ratings usually correspond to a range of credit scores, not the exact ones. FICO scores of 750 and above are considered excellent credit ratings. FICO scores of 700 to 749, on the other hand, are deemed as good credit ratings. A fair credit rating ranges from 650 to 699. All poor and bad credit ratings are those below this score range.

Getting a perfect score of 850 is near impossible. In fact, according Experian, the average American credit score as of March 2008 was 692. Out of 50 states, South Dakota had the highest average American credit score with 710 while Texas had the lowest with 655. When it comes to regions, New England has the highest average American credit score of 713. West North Central follows with 709. Middle Atlantic ranks third with 703 and East North Central comes next with 699. Pacific is fifth with an average American credit score of 695 followed by the Mountain region with 690. Seventh in the list is South Atlantic with 686 and with East South Central trailing behind with 684. The region with the lowest average American credit score is West South Central with 673.

Do major banks and credit card companies associate certain scores with privileges? Absolutely. The average American credit score needed to get a Gold credit card is 712. A Platinum credit card, on the other hand, requires an average American credit score 750. Those who are hoping for a car loan can get a standard loan with an average American credit score of 640. A score that is a little lower can get a special or conditioned car loan; higher than that and the consumer can easily apply for a car loan without the conditions.


Source: Credit Cards For People With Bad Credit Rating

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