Study Highlights Differences Between Those with High and Low Credit Scores

NOTE:
To offer content from IndexCreditCards.com, including our weekly
summary of credit card rates, Credit
Card Monitor, in your publication or on your Web site, please
contact syndicate@indexcreditcards[dot]com.
Study
Highlights Differences Between Those with High and Low Credit
Scores
High scorers charge more, but are more likely to pay on time
A new study from credit reporting agency Experian shows that
consumers with high credit scores are actually more likely to
carry high debt than those with low credit scores. However,
these high scorers got their scores by using a smaller percentage
of their total available credit and by making payments on time.
The
Experian study compared consumers scoring less than 660 against
those scoring 720 or greater, using their debt numbers and payment
behaviors over the past six months as a guide. Those with high
credit scores had over $15,000 in debt and made payments of
over $700 per month, versus over $6,600 in debts and monthly
payments of $291 for those with lower scores.
However,
despite the higher debt and payments, those with higher scores
were only using about 18% of the total credit available to them,
while those with lower scores were using about 28% of the credit
available to them.
Perhaps
the most glaring difference — and the one most likely to hurt
credit scores — was in late payments. Those with lower credit
scores made 2.3 late payments in the six-month period. On the
other hand, the high scorers averaged just 0.2 late payments.
Disclaimer:The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.
This content is not provided by any company mentioned in this article. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any such company. CardRatings.com does not review every company or every offer available on the market.
Published (Modified )