Credit scores play a crucial role in your financial health, influencing everything from loan approval to interest rates and even employment opportunities. Recent data from Experian shows that the average FICO® Score in the U.S. has risen to 715, with most Americans now in the "good" to "exceptional" range. A high credit score can save you significant money on interest rates and ensure smoother transactions for utilities and insurance. Key factors affecting your FICO® Score include payment history, amounts owed, length of credit history, credit mix, and new credit. Improving your credit score involves paying bills on time, reducing debt, keeping old accounts open, and being cautious about opening new accounts. These steps can lead to better borrowing terms and financial security. If your score isn't where you want it to be, implementing these strategies can make a substantial difference.
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