Experian Study Highlights Key Differences Between Consumers With High and Low Credit

[debtcollector`]

Experian Study Highlights Key Differences Between Consumers With High and Low Credit Scores

February 1, 2006
Sentinel 5162
Experian Consumer Direct, the leading provider of online direct-to-consumer credit reports, scores and monitoring, today announced the results of a nationwide study on the differences between consumers in high and low credit score ranges. National and statewide results for the study can be found on Experian's National Score Index® Web site at [url]www.NationalScoreIndex.com[/url].

The Experian study compared consumers scoring less than 660 to those scoring 720 or greater. While there are many factors which impact a credit score, the Experian study focused on five key factors: monthly payment, debt (revolving and installment debt), debt usage (percentage of available credit used), number of late payments (over the past six months) and number of inquiries (over the past six months).

Managing credit responsibly is key to maintaining a high credit score. Maintaining a high credit score allows consumers to obtain better rates on loans and other borrowed credit. The study found that consumers with scores less than 660 had a significantly higher incidence of late payments as well as higher debt usage than those consumers with scores of 720 or greater. While those consumers in the higher scoring group had higher debt balances, they generally utilized less of the credit available to them. Overall the study results include:

Consumers less than 660 Consumers 720 or greater
Average monthly payment $291 $724
Average debt $6,661 $15,015
Average debt usage 27.7% 17.8%
Average number of late payments 2.32 0.0021
Average number of inquiries 3.07 1.44

"Oftentimes consumers focus too much on the three-digit number and not how their credit behavior relates to that number," said Ed Ojdana, group president of Experian Interactive(SM). "By understanding the factors in their credit report that go into calculating their credit scores, consumers will find themselves more knowledgeable about credit scores and ultimately more prepared when interacting with a lender or other financial institution looking to extend them credit."

Experian empowers consumers by offering products and information to help them proactively manage their personal finances conveniently and securely online. Products include credit reports from all three national credit reporting companies, credit score reports that show the positive and negative factors that determine their credit score, a credit score simulator that allows consumers to change the value of key credit score factors and see the impact to their credit score, and credit monitoring products that provide daily monitoring of their Experian credit report or all three national credit reports.

More information about the Experian study, plus additional credit data at the state and local levels, can be found on Experian's National Score Index Web site at [url]www.NationalScoreIndex.com[/url].

Source: Experian Press Release

[seniorjudge]

Originally Posted by debtcollector`

Experian Study Highlights Key Differences Between Consumers With High and Low Credit Scores

February 1, 2006
Sentinel 5162
Experian Consumer Direct, the leading provider of online direct-to-consumer credit reports, scores and monitoring, today announced the results of a nationwide study on the differences between consumers in high and low credit score ranges. National and statewide results for the study can be found on Experian's National Score Index® Web site at [url]www.NationalScoreIndex.com[/url].

The Experian study compared consumers scoring less than 660 to those scoring 720 or greater. While there are many factors which impact a credit score, the Experian study focused on five key factors: monthly payment, debt (revolving and installment debt), debt usage (percentage of available credit used), number of late payments (over the past six months) and number of inquiries (over the past six months).

Managing credit responsibly is key to maintaining a high credit score. Maintaining a high credit score allows consumers to obtain better rates on loans and other borrowed credit. The study found that consumers with scores less than 660 had a significantly higher incidence of late payments as well as higher debt usage than those consumers with scores of 720 or greater. While those consumers in the higher scoring group had higher debt balances, they generally utilized less of the credit available to them. Overall the study results include:

Consumers less than 660 Consumers 720 or greater
Average monthly payment $291 $724
Average debt $6,661 $15,015
Average debt usage 27.7% 17.8%
Average number of late payments 2.32 0.0021
Average number of inquiries 3.07 1.44

"Oftentimes consumers focus too much on the three-digit number and not how their credit behavior relates to that number," said Ed Ojdana, group president of Experian Interactive(SM). "By understanding the factors in their credit report that go into calculating their credit scores, consumers will find themselves more knowledgeable about credit scores and ultimately more prepared when interacting with a lender or other financial institution looking to extend them credit."

Experian empowers consumers by offering products and information to help them proactively manage their personal finances conveniently and securely online. Products include credit reports from all three national credit reporting companies, credit score reports that show the positive and negative factors that determine their credit score, a credit score simulator that allows consumers to change the value of key credit score factors and see the impact to their credit score, and credit monitoring products that provide daily monitoring of their Experian credit report or all three national credit reports.

More information about the Experian study, plus additional credit data at the state and local levels, can be found on Experian's National Score Index Web site at [url]www.NationalScoreIndex.com[/url].

Source: Experian Press Release

Summary: Pay your bills and get a good credit rating.

[cosine]

Originally Posted by seniorjudge

Summary: Pay your bills and get a good credit rating.

Which is exactly what CRA's clients like to hear. Nothing new to see here.

[seniorjudge]

Originally Posted by cosine

Which is exactly what CRA's clients like to hear. Nothing new to see here.

Go and sine no more.

[Ladynred]

Products include credit reports from all three national credit reporting companies,

Which is a BAD idea because they often lack critical details of the individual reports.

credit score reports that show the positive and negative factors that determine their credit score,

Which are NOT free and will cost you another $30 to get from all 3

a credit score simulator that allows consumers to change the value of key credit score factors and see the impact to their credit score,

Which are mostly a crock because the FICO scoring model calculates more things than what they will tell you -- their super-secret formula ya know.

credit monitoring products that provide daily monitoring of their Experian credit report or all three national credit reports.

Which is outrageously expensive, especially for people on a tight budget already.

Experian is one of the WORST to deal with when it comes to disputes. Their rotten practice of updating the 'date of status' with the date of your latest dispute EVERY SINGLE TIME causes FICO to drop your score and this has been CONFIRMED by a FICO representative. Experian will deny it, but FICO people say they DO use that date and if its a new date on an already negative tradeline your scores will drop like a stone ! Experian refuses to correct this or acknowledge that its harmful !

The CRA's are NOT the consumer's friend. They're out there to make money selling their services to creditors and the collection industry and THAT is where their bread and butter comes from .. NOT selling "services" to consumers. If the CRA's had their way, we would NEVER get our reports, the collectively WHINED about the annual free report and fought FACTA because of it !!!

[ljtrtr]

Originally Posted by Ladynred

If the CRA's had their way, we would NEVER get our reports, the collectively WHINED about the annual free report and fought FACTA because of it !!!

Speaking of the annual free report... is there a new website for these? I've been trying the annualcreditreport.com and it isn't working.

The page cannot be found
The page you are looking for might have been removed, had its name changed, or is temporarily unavailable.

Thanks in advance.

[Ladynred]

The site is fine, I just tried it: [url]http://www.annualcreditreport.com[/url]

[ljtrtr]

I just tried your link and got the same http 404 not found error... hmmm

[seniorjudge]

Originally Posted by ljtrtr

I just tried your link and got the same http 404 not found error... hmmm

The site is fine, I just tried it: [url]http://www.annualcreditreport.com[/url]

[HappyHusband]

Originally Posted by ljtrtr

I just tried your link and got the same http 404 not found error... hmmm

Turn off your computer, count to 10, then reboot.

[Ladynred]

Turn off your computer, count to 10, then reboot.

..and that would have NOTHING to do with a 404 error. Errors like that come from the server, they have nothing to do with the PC that is making the http request.

Besides that, turning off your computer IS rebooting.....

[HappyHusband]

Originally Posted by Ladynred

..and that would have NOTHING to do with a 404 error. Errors like that come from the server, they have nothing to do with the PC that is making the http request.

Besides that, turning off your computer IS rebooting.....

According to our corporate IT guy, that is the solution for every computer problem.
And he should know, that's why they pay him the big bucks!

[Ladynred]

Yeah.. typical solution for an IT guy who can't be bothered to actually figure out WHAT the problem is. I've been in IT for 20+ years in tech support and network admin.. rebooting is often a solution, but it's not ALWAYS the solution In this case, rebooting may not do a bit of good.