Consumers With High and Low Credit Scores

The Experian study compared consumers scoring less than 660 to those scoring 720 or greater. While there are many factors which impact a credit score, the Experian study focused on five key factors: monthly payment, debt (revolving and installment debt), debt usage (percentage of available credit used), number of late payments (over the past six months) and number of inquiries (over the past six months).

Managing credit responsibly is key to maintaining a high credit score. Maintaining a high credit score allows consumers to obtain better rates on loans and other borrowed credit. The study found that consumers with scores less than 660 had a significantly higher incidence of late payments as well as higher debt usage than those consumers with scores of 720 or greater. While those consumers in the higher scoring group had higher debt balances, they generally utilized less of the credit available to them.

Overall the study results include:

'	Consumers less than 660	Consumers 720 or greater
Average monthly payment	$291	$724
Average debt	$6,661	$15,015
Average debt usage	27.7%	17.8%
Average number of late payments	2.32	0.0021
Average number of inquiries	3.07	1.44

"Oftentimes consumers focus too much on the three-digit number and not how their credit behavior relates to that number," said Ed Ojdana, group president of Experian Interactive(SM). "By understanding the factors in their credit report that go into calculating their credit scores, consumers will find themselves more knowledgeable about credit scores and ultimately more prepared when interacting with a lender or other financial institution looking to extend them credit."

National and statewide results for the study can be found on Experian's National Score Index Web site at http://www.NationalScoreIndex.com.