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Exceptional Credit Scores: What You Need to Know

Understanding Exceptional Credit

In the realm of credit scores, “exceptional” refers to a FICO® Score of 800 or higher. This elite group comprises nearly 22% of U.S. consumers, making it a significant segment of the population. At O1ne Mortgage, we understand the importance of maintaining a high credit score and are here to assist you with all your mortgage needs. Call us at 213-732-3074 for expert advice.

Factors Influencing FICO® Scores

FICO® Scores are calculated based on several factors:

• Payment History (35%): Timely payments are crucial. Even one missed payment can significantly impact your score.
• Amounts Owed (30%): This includes the total amount of credit being used, particularly credit card utilization.
• Length of Credit History (15%): The age of your accounts matters. Older accounts generally have a positive impact.
• Credit Mix (10%): A variety of credit types, such as credit cards, personal loans, and mortgages, can boost your score.
• New Credit (10%): Opening new accounts can temporarily lower your score.

Demographics of Exceptional Credit Holders

Interestingly, nearly half of those with exceptional credit are baby boomers. This is likely due to the length of their credit history, which is a significant factor in FICO® Score calculations.

Comparing Exceptional Credit to the Average

Consumers with exceptional credit scores differ from the average consumer in several ways:

• Number of Credit Cards: Exceptional credit holders have an average of 4.8 credit cards compared to 3.9 for the average consumer.
• Credit Card Balances: Their average balance is $3,873, significantly lower than the $6,501 average.
• Credit Utilization Ratio: Exceptional credit holders maintain a low utilization ratio of 7%, compared to 29% for the average consumer.

Geographical Trends

Exceptional credit scores are more common in Northern states. Minnesota and Wisconsin lead the nation, with nearly one-third of residents boasting a FICO® Score of 800 or higher. Other states with high percentages include New Hampshire, North Dakota, and Vermont.

Benefits of Exceptional Credit

Having an exceptional credit score can lead to numerous benefits, including easier approval for various types of credit and lower interest rates. However, it’s important to note that other factors, such as income, also play a role in credit approval.

Contact O1ne Mortgage for Expert Advice

At O1ne Mortgage, we are committed to helping you achieve and maintain an exceptional credit score. For personalized mortgage services, call us at 213-732-3074. Our team of experts is here to guide you every step of the way.

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