World Blog by humble servant.According to recent data, approximately 59.2% of the U.S. population has a credit score between 700 and 850. This statistic reflects a trend where the average FICO score has been on the rise, indicating an overall improvement in credit health among Americans.
What Affects Your Credit? Understanding what affects your credit is crucial for managing your financial health. Here are the primary factors that influence your credit score: Payment History (35%): This is the most significant factor. Late payments, defaults, or accounts sent to collections can severely damage your credit score. Timely payments, on the other hand, help maintain or improve it. Credit Utilization (30%): This looks at how much of your available credit you're using. High credit utilization ratios (using a large portion of your available credit) can negatively impact your score. Keeping your utilization below 30% is generally advised. Length of Credit History (15%): Longer credit histories tend to be viewed more favorably. This includes the age of your oldest account, the average age of all your accounts, and how long specific accounts have been open. Types of Credit in Use (10%): Having a mix of credit types (credit cards, retail accounts, installment loans like car lo...