There are some interesting facts out today from Experian:
- 1 in 7 Americans carry 10 or more credit cards
- The average credit score nationally dropped to 674
- The average American holds four credit cards
Check out the National Score Index for some revealing data about our credit card nation.
Understanding how credit scores are calculated can help you become a better user of credit. Most Americans lose points because of the proportion of their credit balance used to their credit limit. Being “maxed out” has a negative impact on your credit score.
Try to use less revolving debt going forward and pay down the existing credit card balances you have.
More and more mortgage loan programs and the ability to get approved for these loans are tied to credit scores. True risk-based pricing will reward those with higher credit scores with lower mortgage rates because of the lower risk of default indicated by the credit socres. To learn more about how your scores impact your ability to get a mortgage, please feel free to call me in my office.
Technorati Tags: Credit, Homeownership 101
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1 Credit Score vs Losing Weight // Apr 4, 2007 at 3:18 pm
[…] had a client in my office the other day who was very frustrated at how long it was taking for their credit score to go up. It reminded me of another conversation I was having with a friend of mine who was as […]
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