By John A. Tures, Professor of Political Science, LaGrange College
There’s some good news, and bad news, for Georgians when it comes to their credit scores. The Peach State doesn’t fare so well in average overall scores, but residents are doing better about boosting their credit score than most states.
If you’re like me, you know credit scores matter, and might have a general idea of what they are. You probably should know more.
According to the Georgia Attorney General’s Consumer Protection Division “A credit report, or credit file disclosure, is a record of your credit activities. A credit report is information about your credit activity. A credit score, or FICO®(Fair Isaac and Company) score, is calculated based upon the information in your credit report. FICO® scores range from 300 to 850, with a higher number indicating a better credit score. Lenders use this credit score to evaluate your creditworthiness, or your ability to repay a loan. A higher score means you are a lower credit risk, so companies will charge you less to borrow money.”
According to the Georgia AG Consumer Protection Division, your score is based upon several factors, the largest being your payment history, with the second most important element being how much you owe. The length of your credit history matters too. The final parts of the measure are your new credit and the types of credit you use.
Excellent scores are in excess of 800. Very good scores top 750 while good ones are better than 700. If you are between 650 and 700, your score is considered fair, while those under 650 are bad. If your score is very bad, you’re below 600 and you’ll most likely have to pay a much higher rate for credit.
According to Adam McCainn, a financial writer with WalletHub, “the average American has a credit rating of 678, which puts them at the border of the good credit range… Raising your credit score can greatly improve your financial opportunities,…
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