Having a good credit score is essential for many aspects of life, from getting approved for a loan to getting the best interest rates. But what percentage of people have a credit score over 650? Statistics show that nearly 57% of Americans have a FICO score of 700 or higher, and 21.8% have a FICO score greater than 800. Credit scores tend to improve with age, with seniors having the highest credit scores on average. If your credit score is low, there are ways to improve it.
Analyze your payment history, recent activity, the length of your credit history, and the combination of credits you have. A higher credit score can open more doors when it comes to borrowing money and can also save you tens of thousands of dollars in interest. It's important to make the required minimum loan payments on time, as late payments can be reported to credit reporting agencies and negatively affect your credit profile. Poor or lower credit scores can increase your interest rates and hurt your chances of getting approved for certain homes or loans.
Generally speaking, credit scores in the fair range can limit your options to loans with higher rates and less favorable terms. When looking for a credit card, you may be able to find one that gets a limited amount of cash back on purchases, but the most rewarding credit cards generally require good or great credit. It's time to put your financial future first and guarantee lifetime savings by increasing your credit rating.