New Lows in Credit
Scores
By: David Soble
According to a March 30, 2005 USA Today
survey and Experian, a major credit reporting repository,
the States with the lowest average credit scores are:
Texas: 649
Arizona 685
Nevada: 656
Louisiana: 661
New Jersey: 663
South Carolina: 665
Credit scores in general range from the
lowest score of 350, to the highest possible score of 830.
Credit scores are based on numerous variables that include
among other things, payment history, account balances, debt
to reported income ratios, etc.
The media has given much attention to credit
scores, and rightly so. Credit scores directly affect the
interest rate that a consumer can receive for a mortgage interest
rate, car loan rate, and in many circumstances, credit card
rate. Even those who are not owning, but rather renting can
be affected. Some apartment management companies only rent
to those individuals with good credit.
The better one’s credit score,
the lower the perceived credit risk by lenders. The lower
one’s credit score, the higher the interest rate. Raising
one’s credit score and maintaining good credit should
be part of one’s regular and ongoing financial planning.
If you need help in raising or repairing your credit score,
seek out reputable, licensed debt management companies or
consumer credit counselors.
Need
advice?
See one of the professionals
in our Resource Directory.
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