Average American consumers have 11 credit histories (7 credit cards and 4 installment loans) that impact their credit score. The histories range from standard credit cards that include store charge cards and gas cards to installment loans such as automobile loans, mortgage loans, and student loans. Most credit histories show consumers paying their bills on time. Less than 40% have ever missed a payment by 30 days or more. Only 20% have been 60 or more days late in making a payment. Less than 10% show a history of a loan or other account in default. Half of all consumers have more than $5.000 in credit card or installment loans. Just under 30% have more than $10,000 of credit or installment debt. Average available credit is over 12 thousand dollars. Most consumers use only a fraction of what is available, but 12% of consumers with credit cards use 80% or more of their credit card limit.
The average consumer's oldest credit history is 13 years old. This is usually a mortgage or successive student loans, but many people do hang on to a credit card for that long. Good history stays on your record. It only disappears after the mortgage or other debt is paid off and closed. Like bad debt, it normally stays for 7 years after you close the account. Some bureaus may drop it earlier to get a credit score based on newer data. Only 5% of consumer credit files have histories going back less than 2 years.
All this data is taken into account when the credit bureau determines your credit score. How do you stack up against other consumers? That is what they are trying to measure. Only 13% of all consumers have a score above 800, with another 27% scoring between 750 and 799. These are the scores you shot for. They almost guarantee that you will get the loan you request and at a favorable interest rate. The average consumer score is 700 to 749. Although only 18% are in this category, half the scores are above and half below this range. Another 27% are in the 600 to 699 range. Only 15% of consumers fall below 600. If you credit score falls into the lower ranges, you may want to take a closer look at your debts, your past credit history, and consider a debt consolidation program to help you improve your credit worthiness.
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