Life And Health Choices

Keeping track of your credit score is a task which should be undertaken even in the best of times. In the face of current economic uncertainties surrounding the coronavirus pandemic , good credit may have even more impact on your financial health. It is important to have your score as healthy as possible in case you need to get a loan, a new or different car, or a credit card to get by.  But for many facing layoffs or other income losses, the first step towards long-term healthy credit lies in figuring out how to stay afloat today. What Is Important About My Credit Score? Two of the most influential factors that make up your FICO credit score are payment history and amounts owed as a percentage of total credit limit. On time payments and your balance of 30% or less gives you a healthier score. These factors help lenders determine whether you’re able to make payments on time and in full, and you haven’t overextended yourself by taking on large balances you’re unable to pa

How do you stack up against these numbers?: The average credit card balance per person in the United States was $6,194 in 2019—an increase of 3% compared to 2018, according to Experian's annual Consumer Credit Review.  The 2018 average  FICO score  was 701 in 2018 and rose to 703 in 2019. And the average FICO score for people with credit cards in 2019 was 727—which is considered very good. A number of factors have an impact on your credit score and unsecured debt balances bumping into your spending limit can drop your score drastically. A free service like Credit Karma can help you keep track of your scores and what changes are happening to those scores and why. What can I do when I reach a credit crises? Do nothing, or just make minimum payments - If you’re making your minimum payments, at the very least, you aren’t accruing late fees and will not be reported for delinquency to the credit bureaus. You will stay afloat but that debt will be with you a ve