Average Credit Score Characteristics

We’re going to talk about average credit score characteristics today. We talked a little in an earlier lesson about average credit scores and what they look like and now we are going to take a look at the characteristics of somebody who has an average credit score. So, the first thing is that the oldest account that somebody who has an average credit score typically has an account that’s 14 years old which suggests that we’ve got some good population density of people who are older versus people who are younger. If you’re younger don’t be discouraged just know that a lot of people have credit for long time. Again this means you want to start early… and stay focused. Next, the average person has 13 credit obligations they had 9 revolving credit accounts which is essentially credit cards and then they have 4installment loans.Next, 30% had ever been more than 60 days late so that something that you should know about.

Half of the people who have credit scores have $5000 or less in debt across all of their obligations except for mortgages. This is a good marker for somebody whose average is a lot more than this, you might expect that your credit score might be lower.

More than half the people with credit cards are using less than 30% of their total credit card limit again this is why we suggest you try to get that credit utilization ratio to be around 10% so that you can actually be far better than the average.

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Average Credit Score Characteristics – Episode #62