The average credit rating in the U.S. is in the upper 600s, but much of the population has a credit score in top credit tier, in the high 700s.
Identification
The average credit score for individuals in the U.S. changes in large part with the economy. During times of a recession, when defaults are typically at their highest, credit scores tend to dip because of missed payments. In August 2010, for instance, the average credit score was a 667, according to CBS Money Watch. In March 2011, the average score moved up to a 692 in light of a growing economy.
Regional Variations
In March 2011, the Midwest and Northeastern had the highest average scores in the U.S. The Midwest reigned supreme in large part because it was hit much more softly by the housing crisis of 2008, so more people can afford their mortgages and not default on payments. Some cities in the Midwest had high average scores. Minneapolis topped all cities in August 2010 with an average 787 and Madison, Wisconsin was right behind with an average of 785.
Considerations
The average score in the U.S. tends be far lower than a median score -- the middle of the scores -- because people with poor credit have such a bad score that they drag down the national average. Sixty percent of the population has a score over 700. The median score in the U.S. is in the 720s.
Tip
Moving to a city with a high average score has no bearing on your own. Work on eliminating debt from your profile and paying bills on time. Lenders usually want to see a score between 760 and 780. Anything less and you may see an adjustment to your interest rate. You may not even receive approval for a loan if you have the average score.
0 comments:
Post a Comment