According to ValuePenguin, credit scores in the United States are standing at an all-time high, with the average FICO score at 695 (scores range from 300 to 850). Scores fall into sub-ranges, or buckets, within which borrowers categorize borrowers to assess the level of risk associated with extending them credit:
- Excellent: 750+
- Good: 700–749
- Fair: 650–699
- Poor: 600–649
- Bad: Below 600
Credit Score Factors
From Capital One Financial Corp. COF’s CreditWise application, here are four major elements, in order of affect to your score, to getting on lenders’ good side.
1. Percentage of payments made on time: This shouldn’t require much explanation; the more you prove that you’re a timely payer, the more a lender believes you’ll be just as punctual with their money. The majority of Americans are in the 90–100 percent range, which is considered Excellent.Whether you’re a person looking to build your credit, or someone who’s had a few missteps and whose credit needs some TLC, make sure that keeping a close eye on these four aspects of your credit score is at the top of your to-do list.
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