It’s been a while since I’ve written about credit scores. As we all know, there are two types of credit. Traditional credit is secured with government-backed loans. This includes car loans, mortgages, student loans, and much more. It is a much different beast than the credit cards that are secured with personal loans. With traditional credit, you are much more secured. You can only apply for a fixed percentage of your credit at a time.
For a lot of people, traditional credit cards are just a way to get a quick and easy way to pay off their loans. Most would consider them “free”, but there is a catch: once you are allowed to access the credit you applied for, your credit will never be the same.
Most people don’t realize this, but you need to make a decision between using your credit and your debit cards. When you apply for your credit card, you are essentially saying, “You are a credit card, and so is anyone else.” The credit card companies then grant you a set percentage of credit that you can use. This is your “credit line.” If you don’t use it, your credit is voided.
This is the credit line that is used for the majority of your credit limit. If you are unable to use your credit line, you cannot apply for a credit card, and your credit card application is voided.
So a credit card, credit line, and credit limit are just another way of referring to the amount of credit you can apply for and use. To get the credit line you need to have your credit score to be below 700, but to be able to apply for a credit card you need to have a credit score above 620. The average credit score at the end of 2014 was 615.
Credit scores are an unreliable guide to debt, as they don’t reflect the true credit history of a person. The actual amount of debt you have and any actual balances you have can be much lower than the score on your credit report.
At the end of 2014, the average credit score for all U.S. households was 615. That is, there were 653 credit applications, with 653 loans, and 653 credit cards. That means that for every one person in the country, there were around 1,650 loans. A simple calculation shows that the average person in the U.S. owed $27,400 in debt in 2013, and there were $5.5 million in credit card debt.
How much credit do you have? Well, that depends on what bank you’re using, and I think it is worth pointing out that most banks give you a credit score which is a combination of your annual income and your debt. So, for example, if you earn a $50,000 income and you have $100,000 in credit card debt, your credit score will be 613.
The average credit score is about 700. So if you have a credit score between 600 and 700, then it should be safe to assume that you do not have any serious credit problems because you are unlikely to have any negative credit reports or credit reports showing you are credit risk.
Some banks will give you a score of 753, but it’s not really a reliable score. This credit score is just based on your annual income. If you have a lower-paying job, that’s going to make a difference in your score. If you have a high paying job that requires a lot of hours and overtime, that may also impact your score.