Credit scores can range anywhere between 300 to 850. 60% of the people however are observed to be between 650 to 799 range.
Here's further classification:
Score below 579 is considered to be a very poor score, while a score between 580 and 619 is considered to be poor. An average score is between 620 and 659, while a score of 660 and above is considered to be a good score. If we classify the scores further, a score between 700 and 759 is considered a great score, while anything above 760 is regarded as an excellent score.
It is expected that at least 40% of the people in the United States have a score below 649, which means at least half the population either have an average or a poor score. This can be attributed to quite a few things. Majorly, people accumulate bad scores due to too much of debt and delinquent handling of their credit card accounts. However, in most cases there is no deliberate attempt to pay credit card bills or not pay off the mortgage loan. There are instances where individuals have several credit cards and they don't tend to keep track of their due dates in a proper way. This results in late payments and their credit scores are dinged. In addition, the credit card debt and the interest rates keep increasing due to incremental addition of late fees. This eventually becomes a nasty circle and individuals are unable to come out of it.
Possession of too many credit cards could be a problem for most individuals. Many people are lured in to using their credit cards by means of initial discounts and cash back offers. Before we realize, we are in huge credit card debt and only way to pay off your debt would be to apply for another loan and pray it won't be rejected due to a low credit score.
While comparing individuals with high credit ratings against the ones with low credit scores, it's clear that they do a great job of staying on top of their credit ratings. These individuals are highly concerned about the ups and downs in their scores. There are many individuals who are subscribed to certain value added services that gives them an opportunity to view their credit scores any time from all three bureaus and also provide some quality credit alerts that help them avoid identity theft. These services could be a great asset to any individual with good or bad credit. However, caution is advised before registering for any such services as some companies may claim to be provide a free score, but could be fraudulent.