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Credit Score information changes with the economy and world financial markets. Some answers provided here will remain accurate for a long time; others will be updated frequently.
What is the Average Credit Score?
The average credit score is a moving target much like your personal credit scores. That being said, however, in the Spring of 2008, the average credit score in America was 692.
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What is a Good Credit Score?
A good credit score typically ranges from 680 to 720, depending on the credit bureau. An acquaintance recently told us that his credit score of 711 with TransUnion had a "good" rating. His score with Experian was 720, also rated good. And the score with Equifax was 703, again rated good.
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What is the credit score range?
300 is the minimum credit score. 850 is the highest. Of note, only 15% of the United States consumer population fall below 600, only 2% below 500. At the other end, only 13% are above 800. For more information, see our article titled, What Are Good Credit Scores?
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What is a credit score?
A credit score is based upon a combination of factors. Those factors are explained in detail in our article, Credit Report Score Chart. The basics are these: how long have you had credit; how much credit do you have; how well do you pay your bills; have you applied for credit recently; how much of your total credit are you using.
All of this information is reported to various credit bureaus, and not all bureaus may have the same information. A mathemathical formula is applied to these weighted factors and a number pops out. That number is bureau specific, meaning you actually have three credit scores.
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What is an acceptable credit score?
This begs the question, acceptable to whom? World financial markets are in a state of constant change. Corporate financial numbers have never been more important on Wall Street than they are today.
If you have watched a news program in 2008, you know something about the mortgage market meltdown and subprime lending. You should also know that many mortgage companies have raised what they consider to be an acceptable credit score.
Employers many times perform credit checks on prospective employees to determine their personal responsibility. What is acceptable for an employer may not be acceptable for a credit card company or a finance company.
Based on the examples mentioned above, an acceptable credit score to you should be in the 680 - 720 range.
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How do I get free credit fico scores?
Credit scores are not free. FICO scores are used, essentially, by all three credit reporting bureaus. Sure, we see the same advertisements you do on the Internet about how you can get free credit reports and free credit scores. The only place you can get a truly free credit report is through the government sanctioned program, but there are no free credit scores. For more information, see our article titled, Free Credit Score - Scam Alert.
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Information articles are being added to this website on a regular basis. Please add our site to your favorites, and visit us frequently.
Making payments on time each month is the most important thing you can do to improve your credit score.
Improving Credit Score Tips
- Pay every bill you owe on time every month
- Pay down existing credit balances
- Pay off but don't cancel your credit cards
- Read our article about Paying Off Credit Cards for additional tips
- Wait - yes, it takes time. As you make progress in getting your credit under control, your credit score will begin to rise.
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