We could all stand to have a better credit score, but the holidays are obviously NOT so good for your credit cards. So check out some of the facts from a recent FICO report on people with extremely high credit scores . . . they might surprise you.
#1.) People with great credit are not debt-free. On average, the highest FICO score-holders carry SEVEN credit cards.
#2.) But they don't carry many balances. Typically, between credit accounts and loans, they'll have about four debt payments a month.
#3.) Two-thirds of them have less than $8,500 in total debt. That excludes mortgages, but includes car loans. Most of them use less than 7% of their available credit.
#4.) They ALWAYS pay on time. Payment history accounts for 35% of your FICO score. And 96% of the highest scorers have NO missed payments on their credit report. The rest have none in the past four years.
#5.) Some of them have messed up before. One out of 100 has had debts go to collections. And a few . . . about one in 9,000 . . . have even had bankruptcies.
#6.) They keep the same accounts and rarely open new ones. The AVERAGE age of a high scorer's oldest account is 25 YEARS. The average age of all accounts is 11 years.
--So if you need a new car loan and your credit stinks, you can fix it. The bad news is, that new car might be a clunker by the time you do.