CREDIT.

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Author: Unknown

WHAT'S THE DIFFERENCE BETWEEN borrowers with high credit scores and those with low ones? A recent study by Experian Consumer Direct, which provides online credit reports, scores, and monitoring, looked at key statistics for borrowers with high credit scores (720 and up) and those with low scores (660 and below). The high scorers had higher debt and monthly payments but far fewer late payments--barely any, in fact. They also used less of their total available credit than those with low scores. What also separates the two groups is the number of credit inquiries. Such an event takes place every time you apply for a loan or a credit card.

                                      CREDIT     CREDIT SCORE
                                    SCORE LESS    OF 720 OR
                                     THAN 660      GREATER
-------------------------------------------------------------
AVERAGE MONTHLY PAYMENT                $290          $724

AVERAGE DEBT (revolving &             $6,661       $15,015
installment accounts only)

AVERAGE DEBT USAGE                     27.7%        17.8%
(% of available credit used)

AVERAGE NUMBER OF LATE                  2.32        0.0021
PAYMENTS (over the past 6 months)

AVERAGE NUMBER OF INQUIRIES             3.07        1.44
(over the past 6 months)

Data: Experian Consumer Direct

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Edited by Monica Gagnier