Low-income Americans have a median credit score of 658, which is significantly lower compared to higher income groups, with high-income Americans boasting a median score of 774. This 116-point difference has substantial effects on access to favorable loan rates, housing, and credit card offers. Despite income not being a direct factor in calculating credit scores, it influences financial behaviors like timely bill payments and debt management, which are crucial for a good credit score. The article also offers practical advice on improving credit scores regardless of income, emphasizing the importance of paying bills on time, monitoring credit scores, and managing or avoiding credit card debt.
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