LANSING, Mich. (WILX) — A below-average credit score can have a serious impact on your financial future.
The average credit score in the United States is 698. According to financial experts, scores between 601 and 660 are considered fair. Bad scores are usually between 500 and 600.
Sara Rathner, personal finance expert at Nerdwallet, says there are things you can do to boost your credit score. The most important thing is to pay your bills on time each month. This includes all sorts of loan repayments and things like rent and utilities.
“Pay your bills on time because late payments, especially those more than 30 days late, can drop your score by around 100 points,” Rathner said. “And it’s really hard to come back from that.”
Keep your oldest accounts open and try to pay off your credit debt as soon as possible so that your credit utilization is low – this is the percentage of your total credit that you are using.
Rathner said closing accounts as you pay them off isn’t necessarily a good idea if you’re working to boost your credit score.
More stories about Watching Your Wallet can be found here.
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