Scottsdale, AZ (PRWEB) October 16, 2012
In Experian’s latest State of Credit report, the bureau found that although the average credit score has increased since the recession, consumers still have mediocre credit standings.
Over the last year, Experian tracked consumer credit scores as the average rose only one point to 750, which under the bureau’s terms is about the equivalent of a “C” letter grade.
A comparable study by FICO found that fewer consumers are falling below the lowest credit scoring level, while those with credit scores in the highest range now exceed pre-recession conditions.
Credit Score Disconnect
According to the National Foundation for Credit Counseling, 63 percent of consumers don’t know what their credit score is.
“Consumers with lower credit scores will be less likely to get approval for zero interest rate promotions or take advantage of opportunities to transfer balances to credit lines with lower interest rates,” said Mechel Glass of CredAbility. “Knowing your credit score and how to earn and maintain the best possible score should be part of an overall strategy to maintain your fiscal health.”
Recent news from the Federal Reserve found that consumers are relying on credit now more than ever, as they increase their outstanding total by more than $18 billion. With credit score knowledge lacking among consumers, borrowers can’t always leverage their history for a loan.
Credit Help for Consumers
Consumers need to inform themselves on how to improve their credit score, and how to protect their financial history. Online financial service, Money Now USA provides online credit resources to assist consumers in making informed financial decisions.
The Money Now USA team compiled a step-by-step credit improvement plan to help consumers improve and protect their credit history for a better financial future.
Improving your credit score opens the door for better credit availability, more competitive interest rates, and increased financial stability.