A credit score, a three-digit number tells lenders how likely you are to pay back the cash they have lent to you. Usually used credit scores range from 300 to 850. Consequently, the rule of thumb for this game will be seen as better the greater the score. The following lists, generally speaking, a decent credit score range based on age group: The following is a common range for a good credit score depending on age group:
Ages 18-24 Good credit score: 670+ Excellent credit score: 740+
Establishing credit records may be challenging, particularly for young people or those just starting their financial journey. Most individuals start with their credit cards and loans at this age, hence this group is most susceptible. This will so keep credit history low, thus credit ratings will also stay low. Make sure credit card balances are as low as possible and do all necessary steps to guarantee that every monthly payment is completed on time. Those without a credit history at all may get authorized users on someone else's credit card to raise their score.
Ages 25-34 Good credit score: 680+ Excellent credit score: 740+
Specifically, by mid-to-late 20s you should have at least three established credit card accounts and either an auto, personal, or school loan in good standing. Combining many credits demonstrates that you have been able to balance between several types of credit facilities. Make sure your credit limit utilized divided by your available credit limit is less than thirty percent. Apply for less credit than you need at any one moment as it will cause multiple hard queries on the credit record.
Ages 35-44 Good credit score: 700+ Excellent credit score: 760+
Your credit must look healthy with a long average history of accounts, active installment, and revolving credit, and no credit blemishes. It is at this stage of life that you may be thinking of borrowing money to buy a home through a mortgage. Mortgage rates for individuals with FICO scores above 760 are very hard to come by. If you get a score lower than 700, then the following should be practiced as some of the best practices in enhancing the score, these include paying all the bills on time and avoiding any credit check by ensuring that credit utilization is limited.
Ages 45-54 Good credit score: 710+ Excellent credit score: 780+
For most, this is the most productive age regarding earnings and therefore, one should have a strong, healthy credit that has high scores. The national average FICO score ranges between 690 and 719 and thus, it is prudent to aim for something above this average. Anything below 660 is considered subprime and it will lead to debt obligations becoming much costlier. Go on having your credit checked often, and if there are items incorrectly reported to credit bureaus, make sure to have them corrected to get the highest score.
Ages 55-64 Good credit score: 740+ Excellent credit score: 800+
Of the many people retiring with perfect credit scores, many are the baby boomers who have wasted no opportunity to maintain a clean credit standing throughout their credit-borrowing lifetime. Nevertheless, unpredictable events like illness, job loss, or any other situation are capable of bringing a couple’s credit score at this stage of life. While changing over to retirement, it is important to pay keen attention to your credit score and if you find out that you have been listed in the credit report for anything that you did not do or a mistake was made then consider hiring a credit repair company to assist you. Having no balance on your credit card means you will be eligible to acquire the best terms on mortgage refinancing, auto loans, and credit cards meant for retirees.
Ages 65+ Good credit score: 760+ Excellent credit score: 780+
Seniors can also have good credit scores, especially if the savings for retirement are low and the existing credit balances and installments are low. This is the age where the average FICO score attains the highest in its entire life cycle. Some may recall that their borrowing abilities in their early years are defined by credit scores alone; however, good credit is also important in later years. High scores result in less expensive insurance premiums and the favorable option on senior apartment homes that demand advance one-time payments. Be vigilant keep an eye on your credit reports and ensure you dispute any incorrect information. There is also the risk of fraud which is prevalent and more so among the elderly.
The key conclusion that can be drawn is that the creation and maintenance of healthy credit is something that one does over a lifetime. Scores fluctuate month-to-month. The average scores posted for various age groups mainly show when most people achieve optimal and full credit potential according to behaviors linked to earnings cycles. However, how one manages credit right from the time he or she gets the initial credit card, through middle age, to senior age is essential to maintaining good credit status throughout the life cycle.
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