Some Pretty Cool Stats on Credit Scores
Some pretty cool stats on credit scores reveal that common misconceptions about having too many accounts or too much credit are often incorrect. Individuals in the highest credit score brackets typically possess more credit cards, a greater number of open accounts, and even more total debt. The crucial distinguishing factor for these high scorers is significantly fewer late payments. Furthermore, they maintain a much lower proportional ratio of credit used versus credit available compared to those with lower scores. Essentially, the path to an excellent credit score involves managing more accounts with consistently low balances and ensuring all payments are made on time.
What You'll Learn:
- More accounts and credit aren't inherently bad.
- Top scores have more cards, open accounts, and debt.
- Fewer late payments are key for excellent credit.
- Keep credit utilization low for an awesome score.
Now, I can’t take credit for this one, but there are a few points of interest on credit scores that I like in the Credit Karma info-graphic below.
First, don’t believe that having “too many accounts” and “too much credit” is a bad thing. Take a look at the highest score bracket and notice that those in it have more credit cards, more open accounts, and more total debt. What they also have (and most important to notice) is LESS LATE PAYMENTS.
Also, notice that the proportional ratio of credit available vs. credit used at the top brackets is way, way lower than that of the lower scores. In a nutshell? More accounts with lower balances and on time payments is the key to an awesome credit score…
