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San Diego, CA. Could it be that
someday lender's will set their interest rates based on
the average credit scores of the people living within a
certain Zip Code or major metropolitan areas? The answer
is yes, it is very possible because Experian, one of the
three major credit reporting agencies in the country has
scored the nation's top 20 metropolitan areas, based on
the average credit scores of the people who live there.
Credit scoring has changed the credit industry
dramatically. And now, the new FACTA requires that they be
revealed to the consumer on request, however, an as yet
unknown fee will be charged.
Experian’s rankings of the 20 major U.S. metropolitan
areas by credit score, revealed more than half are below
the national credit score average of 678. Credit scores
can range from 330 to 830 with a higher score indicating a
lower credit risk.
Average consumer credit scores for 20 major U.S.
metropolitan areas, according to Experian’s National Score
Index, which is based upon a nationwide sampling of three
million consumer profiles. The Index is formulated using
Experian’s consumer credit score model, called the PLUS
Score. The metro areas are:
Minneapolis 707
Boston 705
Washington, D.C. 693
Seattle 691
Cleveland 690
Philadelphia 688
New York 688
San Francisco 686
Chicago 680
Sacramento 676
Denver 675
Tampa 675
Detroit 675
Miami 672
Orlando 671
Atlanta 670
Los Angeles 667
Phoenix 660
Houston 655
Dallas 653
"The average credit score for the U.S. is 678, so
residents in the Minneapolis and Boston areas are doing a
far better job of managing their credit compared to the
rest of the nation," said Charles Chung, vice president of
consulting and analytics for Experian. "These residents
typically have high credit debt, but use that credit
wisely. They also have fewer late payments and don't max
out their credit cards,” Chung added."
Experian says its National Score Index gives consumers a
gauge to help them understand how creditworthy
they are relative to other American consumers. Further,
consumers can learn how their geographic region measures
up against other regions of the country, and how their
credit score affects their ability to obtain the
best interest rates and most beneficial loan terms.
The ICFE wants consumers to understand if you have
accessed more that 50 percent of your available credit
limits on credit cards, your credit score will suffer. The
greater the amount of the credit line that is used, the
lower the credit score will go.
For more information about credit scores:
www.myfico.com.
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About the ICFE:
About the
ICFE:
The Institute of Consumer Financial Education (ICFE), founded in 1982 by the
late Loren Dunton (creator of the “certified financial planner” (CFP)
designation) and it is dedicated to helping consumers of all ages to improve
their spending, increase savings and use credit more wisely. The ICFE trains and
certifies Personal Finance Instructors for its own curriculum. It also trains
and certifies Credit Report Reviewers and Identity Theft Prevention Specialists.
The ICFE is an award winning, nonprofit, consumer education organization that
has helped millions of people through its education programs and resources. It
publishes the Do-It-Yourself Credit File correction Guide, now in its 16th
printing and has distributed over one million “Credit/Debit Card Warning Labels”
and “Credit/Debit Card Sleeves” world wide.
The ICFE became an official partner with the Department of Defense/Financial
Readiness Campaign in June of 2004.
The ICFE is also a partner in the national Jump$tart Coalition for Financial
Literacy and the California Jump$tart chapter. The ICFE staff is also active
with San Diego Saves, an offshoot of America Saves, and the California Student
Debt Resource Awareness Project (CASDRAP) (studentdebthelp.org).
The ICFE’s on-line help for consumers who spend too much was featured in PARADE
Magazine in the Intelligence Report section. The money helps and tips are from
“The Money Instruction Book,” a course in personal finance, positioned to become
among the premier programs in the new bankruptcy and debtor education
initiatives.
The ICFE Web site at:
http://www.icfe.info helps consumers with mending spending, learning about
the proper use of credit, budget and expense guidelines, how to set up and
implement a spending-plan and also how to access financial education courses and
videos and how to teach children about money. Other ICFE services include a free
eNewsletter, and an online resource center of financial education learning
tools, including videos, books, software and personal finance courses.
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