Despite a recent decrease in the average credit score of Americans, many individuals are still maintaining healthy scores. According to FICO’s blog post on March 6, the typical score has decreased by one point from 718 to 717. This figure is classified as “very good” under VantageScore’s scoring model that ranges between 300 and 850 points.
The breakdown of average credit scores based on age reveals that most Americans have a favorable score, with Generation Z and millennials being more likely to move up into higher tiers at an accelerated pace than older generations as per OpenLending and TransUnion’s “Financing the Future” report. Older individuals are inclined towards having better scores due to their longer credit history.
To enhance your score, experts suggest focusing on reducing debt since it is one of the most effective methods for both short-term and long-term improvement. Additionally, requesting an increase in credit limit from lenders can aid in lowering utilization rates while ensuring that new limits are not utilized excessively. Maintaining a consistent record of timely payments, low balances, and restrained applications for fresh lines of credit is essential to maintaining good health of one’s creditscore. Ultimately, cultivating habits centered on such factors consistently over time will lead to an excellent score.
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