Do You Have a Below Average Credit Score?
If you have been wanting to know about how your credit score stacks up against the national average credit score, you will want to read this article. Specifically, we will be discussing what the average American credit score is and three easy things you can do to ensure that your credit score is above average. After reading this article you should understand where you stand and have an idea of what you need to do to improve your credit score.
What is an average credit score?
According to a recent study by Experian, the national average credit score is 680. While this credit score is considered good, you need a score of 720 or higher to have excellent credit. Below 720, you will pay higher interest rates and may not qualify for programs with every lender.
What can you do if your score is below average?
Pay Bills on Time
How you pay your bills accounts for 35% of your overall credit score. Because this is the largest contributor to your total score, paying your bills on time is the most important thing that you can do to ensure that you have a good credit score.
Clean Up Credit Report Errors
An estimated 85% of all credit reports contain errors. This isn’t surprising since the credit bureaus are private companies that collect data to resell for a fee. They don’t actually verify that any information that they report is accurate prior to putting it on your credit bureau. Because of this, it is up to you to make sure that your credit report is accurate.
Pay Off Debt
One of the best things you can do for fast credit repair is to pay off your revolving debt. Rather than just paying off some accounts and leaving others with a balance, you want to make sure that each account has a balance that is 25% or less than your total credit limit.
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