What is the National Average Credit Score
The average credit score will fluctuate regularly and it all depends on a few factors. Most companies will use the Fair Isaac Risk Model to work out the average credit score, which sit at 692 as of January 2011; this is the level that the majority of people in the country are currently sitting at.
The scale of the credit score is between 300 and 850; this is the highest that anybody can reach. The average of 692 means that most people are actually closer to the top than the bottom, which is excellent considering the national debt and the current economic problems. It is also worth pointing out that currently only 13 percent of Americans have a score above 800 and only 15 percent have a score below 550. Also, a good credit score is anything from 700 and above; these people are more likely to be approved for credit than being below that.
However, while the national average credit score is 692, that does not mean that the majority of Americans have a bad credit score. 58 percent have a score of 700 and higher, which means that this national average is actually being pulled down by those with low scores.
If you are worried about your credit score, you can request to see it. In fact, you should see your credit report every year to make sure that your stay on top of your debt. This will also help to prevent identity fraud and to ensure that lenders are aware of any incorrect information that you find on your report.
There are two factors that have a big affect on your credit score; these are your payment history and your outstanding debt. These both account for 65 percent of the total when added together and are usually something that you cannot do too much about – apart from clearing off your outstanding debt.
Something that you should be aware of is that the average credit score in each state is completely different to the national average. As of January 2011, Nevada has the lowest average credit score, with one of just 688. Minnesota residents have the highest average of 721. This simply proves that while the national average credit score is 692, it can fluctuate and does different dramatically.
There are ways to improve your own credit score, even if you do have the outstanding debt on your report. While getting rid of that debt will help, being on the electoral role and staying in the same home and employment will also help. These will prove that you are personally stable, which will promote financial stability.
Your partner could also help to improve your credit score. Opening a joint account with someone who has a higher credit score than you will help you to improve yours as a second income is added to you. Of course, you will find that your score is lowered if you open a joint account with someone that is lower than yours so you will have to look into this risk.