Thousands of Americans have improved their credit score — Here’s How…

Living a life drowned in bad credit can present a number of obstacles that do not make it easy to buy things such as your first home or a brand-new car. If leaves you wading in an ocean that never seems to end and no island to swim over to for temporarily relief.

However, things could be shifting for the better.

What is considered an average credit score?

According to FICO, the median average for a credit score in America is 695. The figure is at an all-time which is promising to consider how significantly some individuals credit scores dropped during the 2009-10 recession.

All in all, credit scores generally range between 300 and 850. The higher the score the better. Credit scores are usually classified in the following categories:

  • Excellent = 720 or higher
  • Fair = 660 to 719
  • Poor = 620 to 659
  • Bad = 619 or lower

There are factors that play into a credit score. These include:

  • Age: The older you are the more likely you’ll have good credit.
  • Location: Some parts of the country generally do better than others. For example, people that live in the south generally have worst credit scores than other parts of the nation and this can be attributed to different factors.
  • Income: While your debt-to-income ratio does not factor into your credit score it does have an indirect impact.

How do you improve your credit score?

The old fashion advice is that you make your payments on time, don’t let your credit get too close to the limit, and other standard tips that are often unavoidable. Debt happens and sometimes it happens in a flash. Perhaps you have major car repairs or costly surgery. It is not always easy to follow what the creditors consider “simple” advice.

It is especially true of individuals in the 30 to 39 age group. These people generally represent the largest population of consumers with a 620-credit score or less. It is no surprise as 30-somethings often fall victim to major events and expenses (weddings, first mortgages, first time parents, etc.). The debt mounts quickly and then they find themselves entangled in the cesspool that is creditor debt and its unGodly high interest rates.

NEXT: Alternatives to Debt Consolidation & Debt Relief Programs