hypothesis about the average american credit score

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Credit score

What is the average credit score in the U.S.?

Louis DeNicola

Robin Saks Frankel

“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Glen Luke Flanagan

Updated 2:07 p.m. UTC Dec. 5, 2023

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The average VantageScore 4.0 credit score in the United States was 701 as of September 2023, a four-point increase the previous year. Most credit scoring systems are based on a range of 300 to 850, and a 701 would generally be considered a good credit score .

We’ll take a closer look at how average scores vary by age group and state, then dive into more details about credit scores . Don’t worry if you’re below the average — there are some straightforward options for increasing your score. And if you’re above it that’s great, but you still might want to know how to improve or maintain your score.

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What is the average credit score in the U.S. by age? 

Although the average credit scores changed from 2022 to 2023, there was a consistent increase in average scores from the youngest to oldest age group. For September 2023, the Baby Boomer Generation has the highest average credit score with a 740, while Gen Z has the lowest average credit score at 663.

VantageScore representatives shared the average credit score by age group with us directly, but you can find other interesting credit score and debt stats broken down by location and age group on VantageScore CreditGauge .

How can age affect your credit scores?

Credit scoring models don’t consider your age as a factor in your credit score, and lenders generally don’t consider age either. However, credit scores do consider the age of the oldest and youngest accounts in your credit report, and the average age of all your accounts. 

Older people may have higher credit scores, on average, partially because they have older credit accounts and a higher average age of accounts. They may also have more stability in their lives, allowing them to more easily manage their credit accounts. 

Some people mistakenly think that closing a credit card will shorten their credit history. But that’s not the case. Both FICO and VantageScore credit scores consider your opened and closed accounts in their age-related scoring factors.

It’s true that once your account is closed, it can fall off your credit report after 10 years. Or if you’re behind on payments when your account is closed, seven years after the account first went delinquent. And once the account falls off your report, it won’t affect your credit scores at all.

What is the average credit score in the U.S. by state?

As of October 2023, the average VantageScore 4.0 credit score in the U.S. was 701 — almost a five-point increase from a year earlier. A 701 is considered a good credit score , and if your credit score is around the average, you can likely qualify for many credit cards and loans.

However, averages do vary when you focus on more narrowly defined groups. If you want to see how you compare to your neighbors, here’s how the average credit score breaks down by state.

The state with the highest average credit score was Minnesota (727), followed closely by New Hampshire (726) and Vermont (724). The same states held the top three spots a year earlier as well, although with slightly different scores — 726, 721 and 722, respectively.

Mississippi (669), Louisiana (675) and Alabama (679) had the lowest average credit scores in October 2023. The scores increased from a year earlier, but the order was the same in Oct 2022 with average credit scores of 662, 668 and 672. In 2022, Arkansas also almost tied Alabama for third-lowest average score. 

What state has the highest credit score? 

As of October 2023, Minnesota has the highest credit score. Minnesota residents have an average credit score of 727, according to VantageScore . 

VantageScore CreditGauge updates the average credit scores by state every month and tracks other credit-related trends, such as average delinquency rates, new account openings and credit utilization rates . 

Does where you live affect your credit score?

Credit scoring models calculate your credit scores based on the information in one of your credit reports from Experian, Equifax or TransUnion . However, credit scores don’t reflect all the information in your credit report.

Your personal information is at the top of your report and can include your name, date of birth, current and previous addresses and Social Security number. The credit bureaus can use this information to help connect new credit accounts to your credit report, and they might give it to other organizations that are trying to confirm your identity. 

But none of your personal information, including where you live, factors into your credit scores.

Additionally, information that isn’t included in your credit report, such as your nationality, gender, sexual orientation, political and religious affiliations, employment status, income and net worth, aren’t included in your credit reports or scores.  

What's the highest credit score you can have? 

Most credit scores range from 300 to 850 — so, the highest score you can get is 850 . However, you generally don’t need to have a perfect credit score to get the best interest rates and loan offers. 

Many creditors offer the same rates to anyone who has a score above a certain threshold. The specific cutoff can vary, but it’s often in the high 700s. As long as you have an excellent score that’s in the high 700s, extra credit score points might earn you bragging rights, but they don’t necessarily have any other value. 

There are a few exceptions. For example, FICO creates industry-specific credit scores for auto lenders and card issuers that range from 250 to 900. VantageScore versions 1.0 and 2.0 also have different score ranges, but those scores aren’t widely used. 

Tips for increasing your credit score

The specific steps you’ll want to take to improve your credit score may depend on your current situation, such as your current score and whether you have negative marks in your credit history. However, in general, you can improve your credit scores if you: 

• Make bill payments on time: Paying bills on time can be important for building a good payment history. It's the most important credit score factor. A late payment can hurt your score and continue impacting it for up to seven years . Having accounts sent to collections or filing bankruptcy can also hurt your score for years.
• Lower your credit utilization ratio: If you’re using a large portion of your credit cards’ credit limits — even if you pay your bills in full — the resulting high credit utilization ratio might be hurting your credit score . Paying down the credit card balances might increase your score quickly. If you already pay your bills in full but you use credit cards to earn rewards, making early payments or requesting a credit limit increase might help.
• Use installment and revolving credit: It’s not a major scoring factor, but having a mix of revolving and installment credit accounts, such as credit cards and loans, can help your credit score.

As you work to improve your credit, be mindful of applying for new credit accounts. Although you might want to open a new credit card or get a credit-builder loan, credit applications can lead to hard inquiries that hurt your credit scores. Additionally, each new account will lower the average age of your credit accounts — a higher average age is best. 

Why your credit score matters

Your credit score can impact: 

• Your ability to qualify for credit cards and loans.
• The interest rate you receive on credit cards and loans.
• The credit limit or loan amount you qualify for. 
• The fees you have to pay on certain loans.
• Whether you get approved for a rental home.
• Your security deposit amount for new utility or telecom accounts. 

Having good credit can save you money by helping you qualify for better financial products (like the best rewards credit cards and cash-back cards ), pay less in interest or fees and keep more money in your pocket when you open accounts. Your underlying credit reports, although not your scores, can also affect some employment opportunities and insurance premiums. 

In short, good credit can make life easier and less expensive. 

Frequently asked questions (FAQs)

As of Oct. 2023, the average VantageScore 4.0 in the US was 701. A 701 is in the “good” score range for VantageScores (670 to 739), and people with this score can likely qualify for many loans and credit cards. However, they won’t necessarily receive the best interest rates or offers.

If you have a high utilization ratio, one of the fastest things you can do to increase your credit scores is to lower your credit utilization. You may see your scores increase as soon as your credit card issuers report the lower balances to the credit bureaus. 

Paying off collection accounts and removing erroneous negative marks from your credit history might also quickly increase your score.

The Baby Boomer Generation (born 1946 to 1964) had the highest average VantageScore 4.0 credit score in October 2023 with an average score of 740. Overall, the average credit scores increase from the youngest to oldest age brackets. One potential reason why is that credit scoring models consider the age of your oldest credit account and the average age of all your credit accounts when calculating your credit score. Therefore, the longer you’ve had credit, the easier it is to have a good credit score.

¹$1,000,000 Identity Theft Insurance for Eligible Losses: Identity Theft Insurance underwritten by insurance company subsidiaries or affiliates of American International Group‚ Inc.. The description herein is a summary and intended for informational purposes only and does not include all terms, conditions and exclusions of the policies described. Please refer to the actual policies for terms, conditions, and exclusions of coverage. Coverage may not be available in all jurisdictions.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy . The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Louis DeNicola is a freelance writer who specializes in consumer credit, finance, and fraud. He has several consumer credit-related certifications and works with various lenders, publishers, credit bureaus, Fortune 500s, and FinTech startups. Outside of work, you can often find Louis at his local climbing gym or cooking up a storm in the kitchen.

Robin Saks Frankel is a credit cards lead editor at USA TODAY Blueprint. Previously, she was a credit cards and personal finance deputy editor for Forbes Advisor. She has also covered credit cards and related content for other national web publications including NerdWallet, Bankrate and HerMoney. She's been featured as a personal finance expert in outlets including CNBC, Business Insider, CBS Marketplace, NASDAQ's Trade Talks and has appeared on or contributed to The New York Times, Fox News, CBS Radio, ABC Radio, NPR, International Business Times and NBC, ABC and CBS TV affiliates nationwide. She holds an M.S. in Business and Economics Journalism from Boston University. Follow her on Twitter at @robinsaks.

Glen Luke Flanagan is a deputy editor on the USA TODAY Blueprint credit cards team. Prior to joining Blueprint, he served as a deputy editor on the credit cards team at Forbes Advisor, and covered credit cards, credit scoring and related topics as a senior writer at LendingTree. He’s passionate about helping people understand personal finance so they can make the best decisions possible for their wallet. Glen holds a master's degree in technical and professional communication from East Carolina University and a bachelor's degree in journalism from Radford University.

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What Is the Average Credit Score?

The average credit score in the U.S. varies based on which credit scoring model you use.

Average Credit Score

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Now at 716, the average FICO score has been increasing since 2005 when it was 688.

Key takeaways

• The average credit score for American adults is 716 based on FICO's scoring model and 702 based on VantageScore.
• The average credit score generally increases with age, likely due to older generations carrying less debt, using less of their available credit and missing fewer payments.
• Minnesota has the highest average credit score of any U.S. state while Mississippi has the lowest.

The average FICO credit score in the U.S. is 716. The average VantageScore, another frequently used credit scoring model, is 702.

"There are hundreds of different credit scores, and they all use the information in your credit report to generate a score," says Rod Griffin, senior director of consumer education and advocacy at Experian. "People often get caught up getting the highest credit score, but this usually isn't necessary."

Instead, he advises focusing on ensuring the information in your credit report is accurate, understanding how that information is used to calculate your credit scores and what steps you can take to improve your score if it's holding you back from accessing financial opportunities.

What Are the Credit Score Ranges?

Credit scores typically are measured in a range of 300 to 850. These scores are categorized from "poor" all the way up to "excellent," based on the scoring model used.

FICO score ranges:

• Exceptional: 800 and above.
• Very good: 740-799.
• Good: 670-739.
• Fair: 580-669.
• Poor: 579 and lower.

VantageScore ranges:

• Excellent: 781-850.
• Good: 661-780.
• Fair: 601-660.
• Poor: 500-600.
• Very poor: 300-499.

The average FICO score has been increasing since 2005 when the average was 688. In April 2005, 6.8% of the population had a FICO score under 500. By April 2021, that percentage had dropped to only 3% of the population. More than 23% of the population had an exceptional score in 2021 versus only about 16% in 2005.

Average Credit Score by Age

Credit scores tend to vary by age. "In general, we see credit scores tend to improve as people age and gain more experience with credit," Griffin says. "Older consumers may be carrying less debt, have lower credit utilization rates and fewer missed payments on average than younger consumers. This is why we see the Silent Generation has higher credit scores then Gen Z, for example."

As of September 2022, the average credit score by age according to Experian data was as follows.

Average Credit Score by State

Average credit scores also tend to vary by state. Minnesota has the highest average credit score at 742 while the state with the lowest average credit score is Mississippi at 680, according to Experian data.

"States with higher credit scores tend to have lower utilization rates, fewer late payments and less debt," Griffin says. "States with lower credit scores tend to have higher credit utilization rates, a higher frequency of late payments and more debt."

As of September 2022, the average credit score by state according to Experian data was as follows.

How Can You Improve Your Credit Score?

"Life is much better with a higher score," says Wayne Durr, a finance professor at Stonehill College. "Your score, in the eyes of lenders, insurance companies and employers, is an indicator of how responsible you are." The higher your score, the easier it'll be for you to get loans, credit cards and jobs.

"The good news is that your FICO score is dynamic, and it changes with your credit behavior, so your FICO score today doesn't have to be your FICO score tomorrow," says Tommy Lee, senior director of scores and analytics for FICO.

If a low credit score is getting in the way of financial opportunities, consider these tips for how to improve your credit score.

Always Pay Bills On Time

Payment history is the single largest factor in determining your credit score based on both FICO and VantageScore calculations. This shows how important it is to pay your bills on time, even if it means only making the minimum payment, Durr says.

"When possible, pay more than your minimum to pay down your debt," he says. Continuously paying down your debt will also help improve your credit utilization rate .

Keep Your Utilization Rate Low

"Credit is a financial tool but debt can be a financial problem," Griffin says. Carrying too much debt can hurt your utilization rate, or the percentage of your available credit you use, which represents the second-largest part of credit score calculations.

"The lower your utilization rate, the better," he says. "People with the best credit scores have utilization rates of less than 10%."

This means if you have $50,000 of available credit across all your credit lines, you should aim to use no more than $5,000 of it at any one time.

You can also ask your credit card company to raise your credit limit , which can help lower your utilization rate, Durr says. "Don't request this unless you have been paying your bills on time because a denial of increased credit limit can negatively affect your credit score."

Don't Close Old Accounts

It may seem counterintuitive, but if you have a credit account you're no longer using, don't close it. Just stop using it, Durr says. "In some instances, closing a credit account can hurt your score," he adds.

Closing the account will reduce your available credit, thus increasing your utilization score.

Plan for Major Credit Purchases

"When preparing to make a major purchase, it is critical to demonstrate stability in the three to six months leading up to it," Griffin says.

One way to keep your credit score in top shape before a big purchase is to avoid anything that could lead to a credit inquiry .

"While the impact is low, recent inquiries on your credit report can temporarily hurt your scores," Griffin says. "If you plan to make a significant purchase such as a mortgage, it's a good practice to avoid opening any new accounts, or closing them, during the months leading up to the application."

And hold off on any big purchases until your application has been approved and all the paperwork finalized, he says.

Check Your Credit Report Regularly

Errors on your credit report can negatively impact your credit score, so it's a good idea to review your credit report regularly. You can get a free copy of your credit report from each of the three major credit reporting bureaus weekly at AnnualCreditReport.com .

If you spot an error, reach out to the credit reporting bureau right away to get it fixed.

Use Credit Boosting Tools

You can also use tools like Experian Boost to help improve your credit score. The tool lets you apply regular bill payments, such as for your cellphone, streaming service or utilities, to your credit score calculations.

"We see scores improve for two out of three people who use Experian Boost with an average increase of 13 points," Griffin says.

Why Is Your Credit Score Important?

"Our economy runs on credit," Durr says. "Your credit score has a major impact on your financial status."

It is the key variable lenders use to determine whether they'll give you credit and also plays a role in your interest rates and loan terms, he says. Employers may check your credit score before offering you a job, and landlords may only rent to people with strong credit.

"In some instances, good credit isn't even about making a purchase," Griffin says. For example, you may want to pay for a rental car in cash, but the rental company will still require a credit check before renting you a vehicle.

Durr teaches his students to start building their credit in their junior year of college so they'll have time to develop a solid payment history by the time they apply for an apartment or buy a car after graduation.

Even if college is far behind you, it's never too late to start improving your credit score. A little knowledge about credit score calculations and responsible credit behavior can go a long way to helping you achieve a "very good" or even an "exceptional" credit score.

Comparative assessments and other editorial opinions are those of U.S. News and have not been previously reviewed, approved or endorsed by any other entities, such as banks, credit card issuers or travel companies. The content on this page is accurate as of the posting date; however, some of our partner offers may have expired.

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Average credit scores in the U.S. in 2021

The average VantageScore is 695 in 2021, according to new Experian data

Published: September 17, 2021

Author: Jamie Gonzalez-Garcia

Author: Kelly Dilworth

Editor: Courtney Mihocik

Reviewer: Brady Porche

How we Choose

Even in the wake of the COVID-19 pandemic, American credit scores still steadily trend upward year-over-year while overall credit card debt and utilization ratios decrease.

The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Please review our list of best credit cards , or use our CardMatch™ tool to find cards matched to your needs.

If you want to know how Americans are doing financially, take a look at their credit scores.

Credit scores are key to determining whether someone will qualify for a mortgage, loan or credit card and how much interest they’ll pay. They also help shed light on people’s financial situations. Despite the pandemic, credit scores rose and average credit card debt fell, according to Experian’s annual State of Credit report .

• The average VantageScore is 695.
• The average FICO score in the U.S. is 716.
• Average credit card debt fell to $5,525 between 2020 and 2021.
• Minnesota has the highest VantageScore average at 726.
• Mississippi has the lowest VantageScore average at 666.

Average credit score in the U.S.

Average credit scores have been trending upward since the Great Recession when many people were struggling with layoffs, underwater mortgages and other financial problems. Despite the pandemic and its associated unemployment rates, credit score averages in the U.S. are up 20 points from pre-COVID levels.

Consumers with the highest and lowest credit scores

Baby boomers and members of the Silent Generation – many of whom are homeowners with substantial savings – enjoy some of the highest credit scores. The oldest borrowers studied by Experian, for example, had an average credit score of 729 in 2021, while baby boomers enjoyed an average score of 724. Members of Generation X fare significantly worse, averaging just a 685 VantageScore.

Not surprisingly, young and inexperienced borrowers have the lowest credit scores, on average – but they’re improving. Millennials, for example, averaged a 667 credit score (up from 658 in 2020), while members of Generation Z averaged a 660 score (from 654 the prior year).

Average VantageScore by generation

Source: Experian [1]

Experian’s data show that although Gen Z has the lowest average credit card balance at $2,312 and Gen X has the highest average credit card balance at $7,236 in 2021 and Gen X decreased their credit utilization ratios by 6.6%. Gen Z’s average utilization ratio increased 3.6% between 2020 and 2021.

On the other hand, boomers reduced their average credit card balance from $6,474 to $6,230 and their credit utilization by 9.7% – the largest decrease among generations – from 23.7% in 2020 to 21.4% in 2021.

Experian State of Credit 2020 credit and debt statistics

States with the highest and lowest credit scores.

Vermont residents came in a close second this year. According to Experian, residents of the Green Mountain State enjoy an average VantageScore of 719, up 7 points from the previous year. Meanwhile, residents of New Hampshire, Washington and Massachusetts also have average scores well above 700.

Although it’s not clear why certain states enjoy higher scores than others, the top-performing states do share something else in common. According to the Census Bureau , many of them boast relatively high median incomes. For example, the median income in Minnesota is $71,306. In New Hampshire, it’s $76,768 and in Massachusetts, it’s $81,215. The median income in the U.S., by contrast, is $62,843. [5]

Meanwhile, several states with the lowest average credit scores also have some of the lowest incomes in the country, making it tough for many residents to pay their bills. Mississippi residents not only have the lowest VantageScore on average at 666 in 2021, but in 2020, the median income was the lowest of all states at $45,081.

Louisiana residents also fare poorly in Experian’s survey – residents have a median income of just $49,469 and an average VantageScore of 669. Experian also found that average scores in Alabama, Oklahoma and Texas were among the lowest nationwide.

How payment history affects credit score

Various factors affect credit scores, including the amount of debt a person has, what kinds of credit accounts they have and how long they’ve been successfully using credit.

The single most important factor impacting a person’s credit score, though, is their payment history.

According to additional research from Experian , Americans with subprime credit scores are reducing debt and increasing their scores. Between 2020 and 2021, subprime consumers’ average FICO scores increased from 578 to 586. In addition, their average debt decreased 5% from $55,135 to $52,628 and their utilization ratios decreased from 61% to 55%. [2]

Compare that to prime borrowers, who have an average FICO score of 767 and an average credit utilization ratio of 16% in 2021. However, prime consumers have almost twice as much debt on average, at $107,956.

How to interpret your credit score

There are two major credit scoring models in the U.S.: VantageScore and FICO. Both are used by lenders and issuers when reviewing applications for credit cards and loans. While your credit scores between VantageScore and FICO might be similar, they are calculated very differently.

How to improve your credit score

If either your VantageScore or FICO score is subprime – or just not to your liking – here’s how you can increase your credit score :

• Pay off balances and reduce your credit utilization ratio. Your credit utilization ratio makes up 30% of your FICO score and is extremely influential on your VantageScore. Reducing your credit utilization ratio will increase your credit scores.
• Connect non-traditional accounts to your file. By using Experian Boost or UltraFICO, you can report accounts like rent payments , utilities and more to the credit bureaus and increase your credit score with on-time payments on those accounts.
• Become an authorized user. If you have a trusted person with responsible credit card habits who’s willing to add you as an authorized user on their credit card, you can enjoy the fruits of their financial labor. Once added as an authorized user, their on-time payments and low revolving balances are reported to your file as well.

Consumers’ credit knowledge

Access to free credit scores has increased dramatically in recent years now that a large number of credit card issuers and personal finance sites offer complimentary access to scores. A 2020 report by Javelin Strategy and sponsored by TransUnion shows that 15% of Americans use more than four or more sources to check their credit scores, 7% use three, 17% use two sources and 38% use one source. [3]

As a result, 52% of Americans surveyed in the study checked their credit score in the past 30 days.

That same study shows consumer confidence about personal finance is significantly higher among people who check their credit score once a month. About 75% of consumers who check their credit score once a month felt they had control over their day-to-day and month-to-month finances, while only 54% of people who never monitor their score and a close 65% of people who monitor less than once a month felt the same way. [3] This trend continues for sentiments like “I have the capacity to absorb an unexpected financial shock” and “I am on track to meet my longer-term financial goals.”

Most consumers agree that financial literacy and credit knowledge are important. According to a 2020 National Financial Educators Council survey,   the vast majority of consumers – 83.3% – agree that financial literacy courses should be included in school. [4]

Bottom line

Despite the pandemic leaving millions unemployed across the U.S., it’s clear Americans used the opportunity to improve their credit scores and reduce average credit card debt. The steadily increasing trends in credit scores across the country, especially in the Midwest, bode well for the economy’s future. However, some Americans could improve their participation in their own personal finances by checking their credit scores more often.

While easier said than done, improving your credit score is often a straightforward process of paying down debt and reducing credit utilization.

• Experian, “State of Credit,” 2021
• Experian, “Fewer Subprime Consumers Across U.S. in 2021”
• Javelin Strategy, “Access to Credit Scores Empowers Consumers, Strengthens the Lending Ecosystem, 2020
• National Financial Educators Council, “Americans Agree Schools Should Teach High School Students Financial Literacy Coursework,” 2020
• U.S. Census Bureau, “Median Household Income in the United States,” 2019

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The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

Jamie Gonzalez-Garcia is a former content editor for CreditCards.com.

Kelly Dilworth is a personal finance contributor and former staff reporter at CreditCards.com. She began her career in journalism at The Atlantic in 2007, then detoured into nonfiction book publishing for several years. She returned to journalism in 2010 and since then has written about everything from 20-somethings with Herculean credit scores to the Federal Reserve’s monetary policy decisions.

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• Average credit score in the U.S. 2005-2023

The average credit score of Americans - as measured by the FICO score - increased for the first time in about two years in early 2023. The average score in April 2023 stood at 718. The score as displayed ranges from 300 to 850 and is based on three different consumer reporting agencies (CRAs) in the United States, namely Equifax, TransUnion and Experian. The source adds that the score was especially impacted by slowing inflation, lower unemployment figures and changes to certain consumer credit data.

Average credit score in the United States from 2005 to 2023

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United States

2005 to 2023

Average FICO Score 8; Figures are reported with about six months delay.

The source adds that credit scores typically break down as follows:

• 720 or more: excellent
• 660 - 719: average/fair
• 620 - 659: poor
• 620 or lower: bad.

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Statistics on " Credit cards in the United States "

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What Is the Average Credit Score by Age, and What Is a Good Score for My Age?

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Your age is critical when it comes to certain money matters, such as saving for retirement or getting car insurance — younger adults have more time for compound interest to work its magic, and they and pay higher car insurance rates. But what about when it comes to your credit?

While credit scoring companies don’t consider ages when assigning scores, there is a correlation between age and score.

Here’s a look at the average credit scores by age, how age can help determine scores and how to judge whether your score is in a good place.

What is the average credit score by age?

There isn’t just one average credit score for every age because many different credit scoring models exist. These are the averages for the two most popular models, FICO 8 and VantageScore 3.0, according to the score providers.

Average FICO 8 score by age

Here’s the breakdown of FICO 8 scores by age range as of April 2023:

Scores get progressively higher with each age group.

Average VantageScore 3.0 score by age

VantageScore 3.0 data from October 2023 is on par with FICO’s. Younger generations have lower average scores than older generations.

While FICO and VantageScore take different approaches to age groupings — one uses roughly 10-year age ranges while the other uses broader generational ranges — the average scores for specific ages are similar to one another. For example, the average score for a 25-year-old is 680 and 669, respectively — an 11 point difference.

What is the average credit score overall?

The average FICO 8 credit score is 717, as of October 2023 [0] FICO Blog . Average U.S. FICO Score at 717 as More Consumers Face Financial Headwinds . Accessed Mar 7, 2024. View all sources . The average VantageScore 3.0 score is 700, as of October 2023. Only adults in the two oldest age groups have average scores above these numbers, but the other groups aren’t too far behind.

Does age affect your credit score?

Your credit scores are not directly impacted by how old you are. Credit scoring companies don’t include ages in their calculations. However, age can play an important role in shaping your scores.

How age can influence scores

The length of your credit history is one of the biggest factors that make up your credit scores . The longer an account has been open, the better, because it gives lenders more information to go off of when assessing risk. Theoretically, your credit scores should get higher as you get older because the age of your credit accounts increases each year. However, if you close an account — particularly one with a high credit limit or that you’ve had for a long time — it could set you back.

Younger adults are more likely to have thin credit files, meaning fewer accounts or credit types. Scoring models reward people with a mixture of revolving and installment credit. For example, having credit cards, an auto loan and a mortgage is better for your score than having only credit cards.

However, your record of paying bills on time and spending responsibly have a much stronger impact. Stumbles that drag down scores such as missing payments or having a high credit utilization ratio can happen to anyone, young or old.

What is a good credit score for your age?

You might consider your score to be good if it meets or exceeds the average for your peers, but that isn’t the best gauge. Following NerdWallet’s general guidelines, a good credit score is within the 690 to 719 range on the standard 300-850 scale, regardless of age.

Credit scoring companies have their own measures. FICO’s good range is 670-739 and VantageScore’s, which it labels “prime,” is 661-780. (Find the complete list of FICO and VantageScore categories below.) But a score that falls below these ranges is still good if it helps you do what you need or want to do, such as open a new credit card or rent the apartment you like.

FICO score ranges

Below 580: poor.

580 to 669: fair.

670 to 739: good.

740 to 799: very good.

800 and above: exceptional.

VantageScore ranges

300 to 600: subprime.

601 to 660: near prime.

661 to 780: prime.

781 to 850: superprime.

How to check your credit score

Checking your credit score yourself is free and will not lower your score. You can get a free credit score through NerdWallet — TransUnion VantageScore 3.0 — and many other financial websites. You might also find your credit score on your monthly bank statement or by logging in to your banking account.

Ways to build credit

It’s normal for credit scores to go up and down. A minor shift usually isn’t cause for alarm. But if your score drops into an undesirable range, there are strategies you can try to bump it:

Check your credit reports to learn what may be causing the drop in your score and dispute any errors with the credit bureaus. 

Spend cautiously and pay your balances frequently to keep your credit utilization as low as possible. This might mean not waiting until your bill is due to pay off your balance but, instead, making payments every other week. 

Set reminders or set up automatic payments on your credit accounts to ensure you pay bills on time.

Increase your credit limit. Try asking your existing credit card issuer to raise your limit or consider adding a new card to the mix.

Credit scores, while important, are just one part of your financial picture. Checking your broader financial health score on NerdWallet can give you a better understanding of your relationship with money.

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Average Credit Score In America: 2023 Credit Score Statistics

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Table of Contents

9 quick credit score facts and statistics, what is the average credit score in the u.s., average u.s. credit score ranges, how to improve your credit score, final thoughts.

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Your credit score is one of the most important things you will carry with you throughout your lifetime. It has an impact on almost every big purchase you make but can be affected by almost every little purchase you make.

Understanding exactly what a credit score is, what affects it, what the average credit score is in America, and the basic stats and facts around a credit score are important. In this post, we have everything you need to know about credit scores in the U.S.

• The average credit score in the U.S. is 714.¹
• The average credit score for Americans ages 18 to 25 is 679.¹
• People older than 77 have the highest average credit score of 757.¹
• Low-income families have a median credit score of 658.²
• Asian Americans have the highest credit score of any race at 745.³
• Black Americans have the lowest credit score of any race at 677.³
• Credit scores are basically even when comparing men to women.⁴
• 21% of Americans have a credit score in the 800 to 850 range.⁵
• Your payment history accounts for 35% of your credit score.⁵

Average Credit Score Overall

To get a good idea of where your credit stands, it is also important to know where the average credit score in America sits. According to FICO, the average credit score as of February 2023 is 714 . That is unchanged since 2021.¹

Average Credit Score by Age

A credit score can build up over time, and that is why a lot of younger generations will have lower credit scores . When looking at the average credit score by age, you can see that credit scores mostly increase. This is the average credit score by age, according to Experian:²

Average Credit Score by Income

It’s not just age that plays a role in your credit score. You can see differences in credit scores among income levels. According to a report by the Federal Reserve Bank of New York, low-income families have a median credit score of 658, moderate-income families have a median credit score of 692, middle-income families have a median credit score of 735, and high-income families have a median credit score of 774.³

The Federal Reserve Bank of New York report also states that credit scores are highly correlated with income and are important both for credit access and for basic necessities, such as renting an apartment or opening a utility account. The median score of 658 in lower-income families suggests that many borrowers are unlikely to have access to affordable credit as those with scores above 720.

Average Credit Score by Race

Asian Americans have the highest average credit score of 745, and Black people have the lowest at 677. In between those are non-Hispanic whites at 734, Hispanic whites at 701, and all others at 732.³

Average Credit Score by Gender

Men and women have credit scores that are essentially the same. Men have an average credit score of 705, while women have an average credit score of 704. All groups have seen an increase of 10 points over the past 5 years.⁴

Now that you have a good idea of average credit scores by age, income, race, and gender, we can dig into what exactly a credit score is and why that number is so important.

A credit score predicts how likely you are to pay back a loan on time. A scoring or number model uses information from your credit report to determine a score. Your credit score can range from 300 to 850. The higher your score, the more responsible you seem to lenders and the more likely you are to receive the loan or other credit product you are applying for.

Score ranges and what they mean:

• 300 to 579: Poor — Your score is well below the average score of U.S. consumers and demonstrates to lenders that you are a risky borrower.
• 580 to 669: Fair — Your score is below the average score of U.S. consumers, though many lenders will approve loans with this score.
• 670 to 739: Good — Your score is near or slightly above the average of U.S. consumers, and most lenders consider this a good score.
• 740 to 799: Very Good — Your score is above the average of U.S. consumers and demonstrates to lenders that you are a very dependable borrower.
• 800 to 850: Excellent — Your score is well above the average score of U.S. consumers and clearly demonstrates to lenders that you are an exceptional borrower.

As of May 2023⁵, the percentage of Americans who fall into each credit score range is below:

So where do these numbers come from? A credit score is calculated by using information from your credit report — such as payment history, the amount of debt you have, and the length of your credit history — but different scoring models use different factors.

Different Credit Scoring Models

The most widely used credit scores are FICO Scores, the credit scores created by Fair Isaac Corporation. 90% of top lenders use FICO Scores to help them make billions of credit-related decisions every year. FICO Scores are calculated based only on information in a consumer’s credit report maintained by the top 3 credit bureaus: Equifax ,  Experian , and TransUnion .

By comparing this information to the patterns in hundreds of thousands of past credit reports, FICO Scores estimate your level of future credit risk, or how likely you are to repay a loan on time.⁵

FICO scores are generally calculated using 5 categories of information contained in your credit reports, with varying weight given to each:⁵

• Your payment history (35%)
• The amounts you owe, or credit utilization (30%)
• The length of your credit history (15%)
• The mix of your credit accounts (10%)
• Your new credit accounts (10%)

VantageScore

VantageScore is a consumer credit rating model developed by the top 3 credit bureaus (Equifax, Experian, and TransUnion) in 2006 as an alternative to the FICO score model.

Calculated with 6 categories of information contained in your credit reports, VantageScore assigns weights to each factor according to their level of influence:⁶

• Your payment history (41%)
• Depth of credit, or the types of credit you use and how long you’ve used it (21%)
• Your credit utilization, or the percentage of your credit limits you’re using (20%)
• Your recent credit behavior (11%)
• The amounts you owe (6%)
• Your available credit (2%)

Who Will Check Your Credit and Why

It is important to keep a high credit score for multiple reasons. Creditors use your credit score to help make a decision on whether you will be able to pay back the money you are requesting to borrow. Your credit is checked when applying for financial products, like a credit card, car loan, mortgage, apartment lease, or student loans.

Hard vs. Soft Credit Check

Hard credit checks, or hard inquiries, are when a lender or credit card issuer checks your credit when deciding on whether or not to approve you for the loan you are applying for. Hard credit checks occur when you apply for a mortgage, loan, or credit card. You should always be asked to approve a hard credit check, and you should be notified after the credit check is complete. A single hard inquiry won’t have a huge negative impact, but applying for multiple lines of credit in a short period of time could lead to a hit on your credit score and lenders considering you a higher risk.

Soft credit checks, or soft inquiries, happen when a company checks your credit as part of a background check. For example, this may occur when you get credit card offers from your bank or a background check when applying for an apartment. These inquiries will not affect your credit score.

Checking your own credit is a soft credit check and won’t affect your credit. It is always a good idea to know what your credit score is and if it has gone up or down. You can check your credit by visiting sites such as annualcreditreport.com . Before entering private information on a site, confirm that the site is legitimate.

In our article, “ What’s the Difference Between a Hard and Soft Credit Check? ” we further explain the differences between the 2 types (with common examples of both) and explain how each check will impact your credit.

There are many ways to improve your credit score if it’s not in the range you would like it to be in.

Here are some things to consider when trying to improve your credit.

• Don’t miss a payment. Pay all your bills on time every month.
• Pay down balances on revolving credit accounts.
• Try to get ahead on past-due accounts.
• Limit the amount of credit you are applying for.

There is no exact timeline for improving your credit score. It all depends on how many negative marks you have on your credit, the types of negative marks, and your current credit score. Be patient, and as you start to pay off accounts, small payments are better than missing payments.

Whether you have an excellent credit score or are working on rebuilding a bad credit score , it is important to always have a full understanding of how credit scores work and what has or will impact your score.

If you still have additional questions on credit score, keep on reading through our FAQ section for more information, or you can leave a comment and ask us below!

1. Horymski, C. (2022, February 22) What Is the Average Credit Score in the U.S.? Experian. https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s 2. Kramer-Mills, C., Landau, R., Scally, J. (November 2020) The State of Low Income America: Credit Access & Debt Payment. The Federal Reserve Bank of New York. https://www.newyorkfed.org/medialibrary/media/outreach-and-education/community-development/the-state-of-low-income-america-credit-access-debt-payment 3. Elite Personal Finance. (2022, March 4) Average Credit Score in American 2022. https://www.elitepersonalfinance.com/average-credit-score/ 4. McGurran, B. (2020, February 28) Women and Credit 2020: How History Shaped Today’s Credit Landscape . Experian. https://www.experian.com/blogs/ask-experian/women-and-credit/ 5. My FICO. What is a Credit Score. https://www.myfico.com/credit-education/credit-scores 6. VantageScore. The Complete Guide to Your VantageScore . https://www.vantagescore.com/press_releases/the-complete-guide-to-your-vantagescore/

Frequently Asked Questions

Is it free to check my credit.

According to the FTC , you’re entitled to 1 free copy of your credit report every week from each of the 3 nationwide credit reporting companies through December 2023. Order online from annualcreditreport.com , the only authorized website for free credit reports, or call 877-322-8228. You will need to provide your name, address, Social Security number, and date of birth to verify your identity.

Which credit score do lenders look at?

When applying for things such as personal loans and credit cards, most lenders will use your FICO Score.

Which credit report is the most accurate?

FICO Scores are what lenders consider the most accurate. The FICO score is used by more than 90% of major U.S. lenders.

What are the 3 main credit reporting agencies?

The 3 main credit reporting agencies are Equifax, Experian, and TransUnion.

What is a good credit score?

Generally, credit scores between 580 to 669 are considered fair and 670 to 739 are considered good.

How does a person with a bad credit score rebuild their credit?

There is no quick fix to repairing your credit but there are multiple ways to start to rebuild your credit score. You can get a credit card and use it responsibly and pay it off at the end of every month. You can also start to pay off any debts or bills you are behind on.

How long does it take to clear a bad credit history?

According to Equifax , most negative information generally stays on credit reports for 7 years. Bankruptcy stays on your Equifax credit report for 7 to 10 years, depending on the bankruptcy type. Closed accounts paid as agreed stay on your Equifax credit report for up to 10 years.

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How do credit scores work? 2 finance professors explain how lenders choose who gets loans and at what interest rate

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With the cost of borrowing money to buy a home or a car inching ever higher, understanding who gets access to credit, and at what interest rate, is more important for borrowers’ financial health than ever. Lenders base those decisions on the borrowers’ credit scores.

To learn more about credit scores, The Conversation consulted with two finance scholars. Brian Blank is an assistant professor of finance at Mississippi State University with expertise related to how firms allocate capital , as well as the role of credit in mortgage lending . His colleague at Mississippi State, Tom Miller Jr. , is a finance professor who has written a book on consumer lending , in addition to providing his expertise to policymakers.

Credit scoring assesses the likelihood of default

Lenders stay in business when borrowers pay back loans.

Some borrowers consistently make prompt payments, while others are slow to repay, and still others default – meaning they do not pay back the money they borrowed. Lenders have a strong business incentive to separate loans that will be paid back from loans that might be paid back.

So how do lenders distinguish between good borrowers and risky ones? They rely on various proprietary credit scoring systems that use past borrower repayment history and other factors to predict the likelihood of future repayment. The three organizations that monitor credit scores in the U.S. are Transunion , Experian and Equifax .

Although 26 million of 258 million credit-eligible Americans lack a credit score , anyone who has ever opened a credit card or other credit account, like a loan, has one. Most people don’t have a credit score before turning 18 , which is usually the age applicants can begin opening credit cards in their own name. However, some people still have no credit later in life if they don’t have any accounts for reporting agencies to assess.

Credit scores simply summarize how well individuals repay debt over time. Based on that repayment behavior, the credit scoring system assigns people a single number ranging from 300 to 850 . A credit score ranging from 670 to 739 is generally considered to be good, a score in the range of 580 to 669 would be judged fair, and a score less than 579 is classified poor, or subprime.

The two most important factors in credit scores are how promptly past debts have been paid and the amount the individual owes on current debt. The score also takes into account the mix and length of credit, in addition to how new it is.

Credit scores can help lenders decide what interest rate to offer consumers. And they can affect banks’ decisions concerning access to mortgages, credit cards and auto loans.

Recent improvements in consumer credit scores

Average credit scores in the United States have risen from 688 in 2005 to 716 as of August of 2021 . They stayed steady at that level through 2022 .

While credit card debt is at a record high , the average consumer was using just over a fourth of the revolving credit to which they had access as of September 2022.

As of 2021, nearly half of U.S. consumers had scores considered very good – meaning in the range of 740 to 799 – or excellent (800-850). Six in 10 Americans have a score above 700 , consistent with the general trend of record-setting credit scores of the past few years. These trends might, in part, reflect new programs that are designed to note when individuals pay bills like rent and utilities on time, which can help boost scores .

During the first quarter of 2023, people taking out new mortgages had an average credit score of 765, which is one point lower than a year ago but still higher than the pre-pandemic average of 760.

Credit score evolution from the 1980s to the 2020s

Developed in the late 1950s, the first credit scores – FICO scores – were created to build a computerized, objective measure to help lenders make lending decisions. Before then, bankers relied on commercial credit reporting, the same system merchants used to evaluate the creditworthiness of potential customers based on relationships and subjective evaluation .

The FICO credit scoring system was enhanced over the 1960s and ‘70s, and lenders grew to trust computerized credit evaluation systems. Credit scores really began to exert an influence on American borrowers beginning in the 1980s as FICO become widely used .

A major goal of the credit score is to expand the pool of potential borrowers while minimizing the overall default rate of the pool. In this way, lenders can maximize the number of loans they make. Still, credit scores are imperfect predictors, likely because most credit models assume that consumers will continue to act in the same way in the future as they have in the past. In addition, some believe that various risk factors make credit scores imperfect . Credit modelers, however, continue to make progress by making continuous technological innovations . Even FinTech lenders, which strive to go beyond traditional credit models , heavily rely on credit scores to set their interest rates.

Recently, “Buy Now, Pay Later” accounts have been added to credit scoring, while medical debt has been removed .

Credit scores might seem scary but can be useful

Borrowers with poor or limited credit have challenges building more positive credit histories and good credit scores. This challenge is particularly important because credit scores have become more widely used than ever because of the increasing availability of data and growing precision of credit models.

The availability of additional data results in more precise estimates of credit scoring , which can improve access to credit for consumers who repay bills consistently over time. These so-called “boost programs” factor in other payments that consumers routinely make on a monthly schedule. Think of the number of bills that you auto pay. Boost programs add points to your credit score for the bills that you pay consistently.

You can improve your credit score by making wise decisions

Two of the most important ways to improve credit scores are paying bills on time and ensuring that your credit report accurately reflects your payment history. Simply avoiding default is not enough. Timely payments are necessary. Someone who pays the bills every three months is “caught up” every quarter. But that consumer is 90 days delinquent four times a year. Being 90 days delinquent alarms creditors. So, someone who pays the bills every month will have a higher credit score at the end of the year.

Having more credit accounts can also positively affect your credit score because having these accounts shows that many lenders find you creditworthy. As a result, you might benefit from leaving credit accounts open if you make the wise decision not to access that credit. Warning! You must not use that extra credit access to spend more money and accumulate more debt. That decision is unwise.

Why? Because managing the ratio of debt to income is also critical to a good credit score . Debt-to-income ratios of 36% or less generally indicate individuals who have income to put toward savings, which is what all lenders are looking to see and one of the best ways to improve your credit.

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Average Credit Score By State & City

No three digits mean more to the economic trajectory of your life than the numbers that make up your credit score. Ninety percent of lenders factor in your credit score when deciding whether or not to lend money to you. [4] This is the average FICO credit score — how does your score stack up? https://www.bankrate.com/personal-finance/credit/average-fico-credit-score/

Your score, such as the popular FICO ® scoring system analyzed here and used by the majority of lenders, affects your ability to secure a place to live, no matter whether you rent or buy. It determines your ability to buy a car and to get loans. Even your ability to buy something as ubiquitous as a cell phone can depend on your credit score.

What’s more, seemingly innocuous and recursive actions, such as even authorizing an inquiry about your credit score, can cause your credit score to change. Even your geographic location can play a role in your credit score. This article will break down the variations in credit scores across the country and look at the factors that affect them.

Key statistics

• Residents of Minnesota have the highest average credit score in the United States (739).
• Residents of Mississippi have the lowest average credit score in the United States (675).
• From 2019 to 2020, the average state increased its average credit score by 7 points, with Arizona (696 to 706) seeing the biggest increase and North Dakota (727 to 730) seeing the smallest.
• All states had average credit scores between 670 and 739 (“good”). The District of Columbia, though not technically a state, also fell into this range.
• 59 percent of Americans have a FICO ® score of 700 or higher. [10] Average FICO score hits record high—here’s the average credit score in every state https://www.cnbc.com/select/average-fico-score-hits-record-high-703/
• Average Credit Score by State - Map

Average Credit Score by State - Table

Top 50 metro areas ranked by fico score, states with the highest average credit score, states with the lowest average credit score, credit card debt, credit utilization, average credit score by state - map [2] here’s the average credit score by age in the us https://www.rockethq.com/learn/credit/what-is-the-average-credit-score-by-age.

Source: [2] Here’s The Average Credit Score By Age In The US https://www.rockethq.com/learn/credit/what-is-the-average-credit-score-by-age [5] Average Income by State plus Median, Top 1%, and All Income Percentiles in 2019 https://dqydj.com/average-income-by-state-median-top-percentiles/

Source: [3] Experian - 2019 Consumer Credit Review https://www.experian.com/blogs/ask-experian/consumer-credit-review/

The Highest and Lowest Scoring States

• Minnesota — 739
• Wisconsin - 732
• South Dakota - 731
• Vermont - 731
• North Dakota - 730
• South Carolina - 689
• Texas - 688
• Alabama - 686
• Louisiana - 684
• Mississippi - 675

How to Build Credit When You Have None

Building credit from scratch can be a lot easier when you understand where to start and which mistakes to avoid.

When individuals get their credit reports from one of the three main rating agencies (Equifax, Experian, and TransUnion), they concentrate mainly on the three-digit number that is the end result. 

However, several factors actually go into calculating a credit score. Moreover, when an institution runs your credit, it will show you one of two possible scores.

The FICO score is a scoring model developed by the Fair Isaac Corporation (hence the initials used in the name). This score is calculated based on your payment history , the amount you owe relative to how much credit you have available, the length of your credit history , any new inquiries made, and the variety of credit that you have. [8] Average Credit Score in America: 2020 Report https://www.fool.com/the-ascent/research/average-credit-score/

Equifax, TransUnion, and Experian got together to develop their own score called the VantageScore, which on the surface seems similar to the FICO score. It uses the same range of 300 to 850, but takes into account additional factors such as the age of individual types of credit in your credit history as well as the percentage of credit limits used. [8] Average Credit Score in America: 2020 Report https://www.fool.com/the-ascent/research/average-credit-score/

The rating agencies can use either model to generate your credit score, but in 2019, Experian switched to using FICO scores. This choice was driven by the fact that though the models are similar, lenders opt for FICO scores in 90 percent of U.S. lending decisions. [10] Average FICO score hits record high—here’s the average credit score in every state https://www.cnbc.com/select/average-fico-score-hits-record-high-703/

Geographically, the states with highest credit scores tend to fall in the midwest and New England. The states with the lowest credit scores tend to fall in the Deep South with an average score of 658 versus a national average of 703 .

There are common behaviors that people with high credit scores share: they don’t make late payments, they don’t max out the credit that’s available to them, etc. [9] People in These 9 States Have the Best Credit Scores in the Nation https://www.fool.com/the-ascent/credit-cards/articles/people-9-states-have-best-credit-scores-nation/ But there are other factors that can also affect credit worthiness.

Income instability can dramatically affect a person’s credit. Whether or not a person has money coming in regularly to pay the bills can certainly impact things like delinquencies in credit card and loan payments. Higher unemployment rates and more frequently occurring natural disasters can also have a direct effect on an individual’s need to use credit at higher amounts and increase the risk of delinquencies.

There is a definite correlation between average credit score and average income. While there isn’t a huge discrepancy in credit card balances carried between the five highest-scoring and the five lowest-scoring states, there is a $10,000+ per year gap in individual income, and a still-larger gap in household income.

There is also a correlation between the lowest performing states and the rates of delinquencies for those states. Of the several factors that go into calculating a credit score, the one carrying the most weight is payment history. [7] Experian - Credit Scores Lower in States With High Ratios of Delinquent Accounts https://www.experian.com/blogs/ask-experian/research/credit-scores-lower-in-states-with-high-ratios-of-delinquent-accounts/ Louisiana has the second lowest average credit score and has the highest rate of delinquency. Minnesota has the highest average credit score in the nation and has the lowest rate of delinquency.

The difficulty in analyzing data using average income is because high incomes skew the data. Think of the old joke about Bill Gates walking into a bar. When you average it out, everyone in the bar is a millionaire. What further complicates this is the other end of the spectrum—low incomes. 

Individuals with low incomes often do not have enough credit activity and payment history to build a strong credit profile, and thus often aren’t counted. [6] Minnesota Residents Have Highest Average Credit Scores https://www.usnews.com/news/best-states/articles/2019-12-02/minnesota-has-highest-credit-scores About 11 percent of the adult population of the United States has no credit record at all, and 8.3 percent of adults do not have enough of a credit history to generate a score. [8] Average Credit Score in America: 2020 Report https://www.fool.com/the-ascent/research/average-credit-score/

One interesting area to look at is credit card debt. While average credit card balances are rising, Americans seem to be handling it well overall. The average FICO score for consumers with a credit card is 727. 

In 2019, 67 percent of Americans used a credit card regularly. Americans’ average credit card debt in 2019 was $6,194, an increase of 3 percent over the previous year. [3] Experian - 2019 Consumer Credit Review https://www.experian.com/blogs/ask-experian/consumer-credit-review/ States with both the highest and lowest average credit scores have average card balances between $5600 to $6600. However, when you look at income, it appears that the states with higher scores have incomes that can much more easily and quickly pay off those balances.

Even so, data suggests that high levels of credit card debt aren’t the primary causes of poor credit performance. New Jersey, Virginia, Maryland, Hawaii, Connecticut, and New York are among the states with the highest average credit card debt, yet they are all solidly in the middle for credit scores, being neither the best nor the worst. [7] Experian - Credit Scores Lower in States With High Ratios of Delinquent Accounts https://www.experian.com/blogs/ask-experian/research/credit-scores-lower-in-states-with-high-ratios-of-delinquent-accounts/

A major correlation between the states with the highest and lowest credit scores is credit utilization, defined as the ratio of the amount of credit you are using compared to your credit limit. [12] What is a Credit Utilization Ratio? https://www.huffpost.com/entry/what-is-a-credit-utilization-ratio_b_59d6cb48e4b0cf2548b335ce For example, if you have a revolving line of unsecured debt (like a credit card) with a limit of $10,000, and you are carrying a balance of $1,000, your credit utilization ratio is 10 percent. 

According to Experian, the utilization rate on revolving credit accounts is lower in the northern part of the United States with higher average credit scores than it is in the southern states with lower average credit scores. [11] This Map Shows The Average Credit Score In Every State https://www.huffpost.com/entry/average-credit-score-by-state-map_l_5ce304c3e4b0877009932a48

Interestingly, one of the plus sides of credit scores taking credit utilization into account is that a credit utilization ratio can be improved much more quickly than other factors such as payment history. If you have a lender using Vantage Scores as part of the credit check, lowering your utilization ratio on revolving debt will definitely work in your favor.

• [1] The Average Credit Score By State https://www.thebalance.com/the-average-credit-score-by-state-4161310
• [2] Here’s The Average Credit Score By Age In The US https://www.rockethq.com/learn/credit/what-is-the-average-credit-score-by-age
• [3] Experian - 2019 Consumer Credit Review https://www.experian.com/blogs/ask-experian/consumer-credit-review/
• [4] This is the average FICO credit score — how does your score stack up? https://www.bankrate.com/personal-finance/credit/average-fico-credit-score/
• [5] Average Income by State plus Median, Top 1%, and All Income Percentiles in 2019 https://dqydj.com/average-income-by-state-median-top-percentiles/
• [6] Minnesota Residents Have Highest Average Credit Scores https://www.usnews.com/news/best-states/articles/2019-12-02/minnesota-has-highest-credit-scores
• [7] Experian - Credit Scores Lower in States With High Ratios of Delinquent Accounts https://www.experian.com/blogs/ask-experian/research/credit-scores-lower-in-states-with-high-ratios-of-delinquent-accounts/
• [8] Average Credit Score in America: 2020 Report https://www.fool.com/the-ascent/research/average-credit-score/
• [9] People in These 9 States Have the Best Credit Scores in the Nation https://www.fool.com/the-ascent/credit-cards/articles/people-9-states-have-best-credit-scores-nation/
• [10] Average FICO score hits record high—here’s the average credit score in every state https://www.cnbc.com/select/average-fico-score-hits-record-high-703/
• [11] This Map Shows The Average Credit Score In Every State https://www.huffpost.com/entry/average-credit-score-by-state-map_l_5ce304c3e4b0877009932a48
• [12] What is a Credit Utilization Ratio? https://www.huffpost.com/entry/what-is-a-credit-utilization-ratio_b_59d6cb48e4b0cf2548b335ce

John Boitnott

A journalist, content strategist, and editor, John Boitnott has worked at TV, newspapers, radio and online media for 25 years. He's written for Inc, Entrepreneur, Motley Fool, Fast Company, NBC, USA Today and BusinessInsider, among others.

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All Blog Articles > Credit Laws > What is the average American credit score?

• All blog articles

What is the average American credit score?

• Mar 10, 2017
• Author: Jackie Lam
• March 10, 2017

Most people have heard the term “credit score” and know it has something to do with their personal finances. But what is it? How do you get one? And how does yours compare with people like you?

The credit score is a three-digit number based on your credit report. Lenders report your debts and payments on accounts like a mortgage, car loan and credit cards to the credit bureaus — Equifax, Experian and TransUnion. That’s your credit report. Lenders, employers, and even insurance companies use credit reports to determine whether to lend you money, give you a job or offer you the best rate for car insurance in some states.

The credit score is derived from that report. The higher your credit score, the lower interest rates you’ll be charged on loans. It’s that simple.

We’ve collected data that show the average American credit score based on the FICO model, as well as specific comparisons that show how you can benefit financially by improving your score.

The graph below compares the average American credit score, which grew from 695 to 699 during this four-year period, with the average Credit Sesame member score, which increased by 8 points during the same period.

While being a Credit Sesame member won’t necessarily improve your credit score, we found that active members on our Personal Credit Management platform tend to be more proactive about improving their credit score.

If your credit score has increased along with the average American credit score, you may wonder how you stack up with others. Let’s dive deeper into how the average score varies by age and income, how you compare with the rest of the population, and what it means to have an “average” score in real life.

American credit score ranges

There are three different credit bureaus using slightly different credit ranges to determine whether Americans have excellent, very good, good, fair, or poor credit. As you can see, there are a few naming variations within the ranges, but it means the same thing. Understanding these ranges is important because this is how financial lenders evaluate potential customers.

Why is knowing the average American credit score important?

The most important reason to know the average American credit score is so that you can improve your own credit score. The better your score, the less interest you will pay on a loan. Below are interest rates the average American will pay for auto loans and credit cards depending on their credit score range.

Comparing Credit score ranges & Interest rates

As you can see, there is more than 11% variance between those with Excellent credit and those with Poor credit when seeking an auto loan. With credit card interest rates, there is a 11.12% gap. This can result in the difference between saving or paying hundreds if not thousands of dollars in interest fees. Every borrowing decision you make will likely be tied to your credit. By knowing the average score, you can see what you might expect to pay based on your own score. Then you can create a plan to improve your score.

Breaking down the average American credit score

Let’s start by digging a little deeper into each credit score range (using FICO ranges) and how much of the American population lands in each category.

Population vs. Credit Score Range

30% of the population has a credit score that is fair or poor, which means that almost 1 in 3 Americans are paying high interest rates and having more difficulty acquiring new loans than if their scores were in the good range (or above).

Average Credit Score by Age Group

Does the average American credit score vary by age? The table below breaks each age group into credit score ranges in order to determine how many Americans in each age group have a fair credit score.

Percent of Americans in each Credit Score Rank by Age

What this chart shows is that among those surveyed, the older one is, the higher their credit score averages are. There is a couple of reasons for this.

As consumers age and use credit responsibly, their credit scores are likely to improve. This is evident by the fact that 81% of those between the ages of 50 to 59 have fair or better credit. By this age, consumers should be building healthy credit scores to enable them to get the lowest rates on mortgages, car loans or credit cards.

In addition the older an individual is, the longer they have had to create a credit history. Assuming you begin your credit journey at 18, if you are 19, your credit history will be approximately 1 year old. If you are 68 however, you have 50 years of possible credit history.

• Payment history: 35%
• Amounts owed: 30%
• Length of credit history: 15%
• Credit mix: 10%
• New credit: 10%

For all age groups, learning about credit scores and how to improve them will improve their financial lives.

Benefits of having average credit scores

Being average isn’t that bad! Let’s revisit some of the rates for mortgages, auto loans, credit cards, and car insurance premiums.

Being in the fair credit score range may give you a 14.8% interest rate on an auto loan and 17.75% for a credit card. Now if you had excellent credit those interest rates would be at 3.38% and 13.87% respectfully. It’s easy to see that jumping to an excellent credit range can reduce your interest rates quite a bit. Those rates are for smaller things, like a car loan which is an average of $24,000 over 5 years and a credit card with an average maximum balance of $5,000.

The largest loan you’ll likely take in your life is a mortgage for your home. Let’s take a look at our research on how interest rates differ for the average American.

Interest rate comparison for excellent and poor credit.

The average American credit score as of 2015 was 699 which means that roughly half the population have lower credit scores, resulting in higher interest rates. By reviewing the charge above, the difference between a poor credit score and an excellent credit score — could mean almost $100,000 over the course of a home loan. Even a small improvement in credit score may bump them to the next range and reduce their mortgage APR. Lowering a mortgage rate by even just 1.807% as seen above, can make a huge difference in monthly payments.

Car insurance is another area of your finances that will be affected by your credit score. It’s quite easy to see the difference between the premiums paid by Americans with excellent credit compared to those with good credit. In some cases the jump is quite significant, while in others, it’s barely noticeable. There are many other variables, including local State regulation, accidents on your credit, and tickets that affect car insurance rates, however, this is a basic example of the value in improving your credit score.

Benefits of understanding the average American credit score

Understanding the average American credit score can show you where you stand with your credit. Having fair credit, like the average American, is middle of the road, in terms of interest rates and ability to procure loans. It will give you access to decent interest rates and financial products.our goal, however, should be to have very good or excellent credit scores, and that requires closely monitoring your credit and understanding what affects your credit score.

Conclusion & summary

The average credit score in the United States, according to our 2018 analysis, is 699, and for a Credit Sesame member, it’s 707. We have seen slow growth in the average American credit rating or score, which is a trend that everyone would like to see continue. Buying power is important, and the higher your personal credit score, the better your buying power is.

At Credit Sesame, we believe that working to educate Americans on Personal Credit Management will help them not only understand their credit but improve their credit scores. This will improve individual’s ability to achieve financial goals, as well as decreasing interest rates paid for those goals, be it a vehicle, or a house.

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• The average debt in America is $104,215 across mortgages, auto loans, student loans, and credit cards.
• Debt peaks between ages 40 and 49 among consumers with excellent credit scores.
• The largest percentages of the average consumer debt balance are mortgages. 

The average debt an American owes is $104,215 across mortgage loans, home equity lines of credit , auto loans, credit card debt, student loan debt, and other debts like personal loans. 

Data from Experian breaks down the average debt a consumer holds based on type, age, credit score, and state. We've included supplementary data from the New York Federal Reserve Bank. Both data sets are updated quarterly. 

Average debt by type of debt

Here's an up-to-date breakdown of the average debt per consumer and total balances across all consumers from Experian data from the third quarter of 2023 and Fed data from the fourth quarter of 2023, respectively. 

Mortgage debt is most Americans' largest debt, exceeding other types by a wide margin. Student loans are the next largest type of debt among those listed in the data, followed closely by auto loans. 

Debt tends to peak somewhere around middle age. As a whole, this suggests that Americans tend to pay off debt going into retirement and tend to keep debt balances low in retirement, especially people over age 70. The largest source of debt for those under 30 is mortgages.

Here's how the average debt balance breaks down per person by age group according to Experian data. Scroll right to see more data. 

Here's how average debt breaks down across consumers within the five credit score risk levels according to Experian data from the third quarters of 2022 and 2023.

Credit scores are deeply tied to debt, affecting access to credit and interest rates. 

We can observe this among consumers with poor credit, who have relatively low debts likely because many traditional loans and credit cards are not accessible to them. Additionally, younger people tend to have lower credit scores as they haven't had the time to build credit like older consumers. Consumers who are 18-29 also have the lowest average debt compared to other age groups.

On the other hand, consumers with excellent credit scores have the lowest average debts among all risk categories. Excellent credit will earn you lower interest rates, which may contribute to the lower average debt among consumers with excellent credit. Additionally, older people tend to have higher credit scores and lower average debts. The average credit score among the Silent Generation (77+) is a 760, the highest of any generation. 

Average credit scores have consistently risen over the last few decades. The current average FICO score is 718, an all-time high, and 64.1% of consumers have a FICO score of 700 or above.

Where someone lives tends to have a big influence on the amount of debt they accumulate. On average, residents in California, Oregon, and Washington have the highest debts while 

While some parts of the country have higher housing prices and costs of living, it can be lower in other states. California residents, for example, tend to have higher average mortgage balances than many other states with more affordable housing, like Texas and Ohio. 

Here is the average debt by type for residents of each US state, according to Experian data from the third quarter of 2023. 

This analysis excludes medical debt , which tends to fall more heavily on residents in Southern states, many of which did not expand Medicaid. As a result, the average credit score in these states is significantly lower than the average credit scores of states outside this region.

Holding large amounts of debt, especially high-interest debt , can quickly get expensive.

Large amounts of debt can also lower your credit score by raising your credit utilization ratio or simply by causing you to miss a payment here and there, resulting in a delinquency on your credit report . As of the fourth quarter of 2023, the delinquency rate on credit card loans is at 3.10%, which is the highest it's been since 2012.

Choose a repayment method and set a goal

Whichever method you choose, the first step is going to be to take stock of everything you owe, how much you owe in total, and the interest rates. Then, you can start to prioritize what you owe. 

Two popular strategies are the debt avalanche and the debt snowball. The debt snowball tackles the smallest debt first to build momentum, working through bigger debts next, while the debt avalanche focuses on paying down higher-interest debt first to decrease the amount you pay overall. Depending on how your debt looks, these repayment methods can help you pay off debt fast .

Consider consolidating or refinancing while interest rates are low

For borrowers with credit card debt and other relatively small debts with high interest rates, consolidating debt could make them more manageable. Debt consolidation is a process where you take out one large loan to pay off all your smaller loans, effectively condensing them into one larger total. You can also consolidate credit card debt with a balance transfer card. The best debt consolidation loans will have a lower interest rate.

You can also consolidate credit card debt with a balance transfer card. Like consolidation loans, the best balance transfer credit cards will have a lower interest rate, but will also come with an introductory 0% APR period that usually lasts 12-18 months. 

Debt relief plans

If you need outside help with your debts, it may be worth your time to look into debt relief options. There are several options available to you, each of which differs in how it helps you pay off your debt and the urgency of your debt problem.

You can enlist the help of a nonprofit credit counseling organization, which will help you sort out your finances and pay off your debts. In extenuating circumstances, they may even recommend a debt management plan in which your credit counselor negotiates the terms of your loans with your creditors on your behalf. They can secure lower interest rates or lower monthly payments, though they usually won't be able to lower the actual amount of money you owe. 

For more dire debt problems, a debt settlement plan will reduce your overall debt amount. While this will hurt your credit score, you may be able to reduce your debt by upt to 60%.

While you can negotiate a debt settlement on your own , most people hire debt settlement companies to negotiate on their behalf. You can find our guide to the best debt settlement companies here.

Average debt frequently asked questions (FAQ)

The average American household pays $1,583 in debt payments each month. 

The total household debt Americans owed in the fourth quarter of 2023 was $17.5 trillion.

There is no official threshold for what constitutes high-interest debt. Unofficially, any debt with a higher interest rate than mortgages or student loans is considered high interest. The federal student loan interest rate is 5.50% for undergraduate students, while the average 30-year fixed mortgage interest rate is 6.41% as of March 2024.

The amount of debt that is "too much" will depend on your personal financial situation. Your personal cash flow will determine how much debt you can reasonably take on. If you find yourself struggling to pay all of your debt obligations, you may have more debt than you can handle. 

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There are some good signs regarding Americans’ credit health — but trouble spots loom

F ewer delinquencies on most types of consumer loans and a decreasing reliance on credit brightened the overall picture of Americans’ credit scores last month, according to an analysis released Wednesday.

But there are still trouble spots ahead.

VantageScore’s monthly look at Americans’ credit scores showed delinquency rates generally dropping for a second straight month in April, even though those rates are still higher than they were a year ago.

On a month-to-month basis, the share of past-due debt declined for credit cards, car loans and mortgages. But it increased for personal loans, according to the credit-scoring company, which is owned by Equifax TransUnion and Experian the three major credit-reporting companies.

Households making up to $45,000 have delinquency rates that are roughly twice as large as the overall average, according to VantageScore.

While Americans kept trying to get current on their debts in April, VantageScore said consumers used less of their allotted credit limits and paid down their balances.

The ratio reflecting the average balance-to-loan amount dropped to a three-year low in April, according to VantageScore numbers. That’s the result of credit-card issuers increasing their limits while consumers pay off their loans, analysts said.

While utilization rates and delinquency rates are dropping, April’s report also showed more people taking out loans. Originations for credit cards, car loans, personal loans and mortgages increased last month.

The sharpest increase in newly opened accounts was for credit cards and personal loans, which could be a sign that more people needed to boost their options for how they pay for everything in their lives. As prices on essentials such as groceries rise, some shoppers are turning to credit cards to pay for them .

In the big picture, the April numbers reflect improving credit health, according to Susan Fahy, VantageScore’s executive vice president and chief digital officer.

“While persistent high prices and interest rates are unquestionably putting pressure on lower-income Americans, this month’s data also shows that consumer finances — more broadly — remain strong, reflected in higher VantageScore credit scores, declining delinquencies, stable balances and an overall lower use of credit,” she said.

The average credit score climbed one point to 702, out of a range of 300 to 850. A score between 670 and 739 is generally considered “good.”

The report is one data point in the overall picture of people’s finances right now.

While affluent households keep spending, there are signs that many middle- and lower-income families are increasingly focused on price as inflation rates slowly move lower .

Americans had $1.12 trillion in credit-card debt during the first quarter, according the Federal Reserve Bank of New York. Delinquency rates have maintained their climb from pandemic lows and are especially pronounced for younger consumers , according to New York Fed researchers.

The long view of Americans’ debts also hints at the financial pressures people are facing. Household debt has been eating up more income over the decades, with the debt-to-income ratio climbing from 51% in 1989 to 95% before the pandemic and basically staying at that level since then.

How have higher prices and borrowing costs affected you and your financial decisions? MarketWatch would like to hear from readers who want to share their experiences. You can write to us at [email protected] . A reporter may be in touch to learn more.

What credit score do you need to buy a house?

In a nutshell

Buying a home becomes much easier when you have your financial ducks in a row ahead of time. You can boost your approval odds for the home you want if you save up a hefty down payment amount, pay down your existing debt to improve your debt-to-income ratio (DTI) and show strong, consistent income on your mortgage application.

• Your credit score is another major factor that can make or break your home purchase — or at least limit the type of home loan you can be approved for. Having a higher credit score can also help you qualify for a lower interest rate, which can lead to considerable interest savings as you pay off your home.
• Most lenders want to see a credit score of at least 620 when you apply for a mortgage, but some loan programs have lower minimum requirements.
• Your credit score can also determine the minimum down payment you need to purchase a home.

What is a good credit score to buy a house?

A good credit score can help you qualify for more types of home loans with better mortgage rates and terms. Generally speaking, most conventional mortgage lenders need to see a credit score of at least 620 to approve you for financing. However, some types of home loans approve borrowers with credit scores as low as 500 if other conditions are met.

Note: A good credit score to buy a house isn't all you need to qualify for a home loan; factors like your income, employment and how much debt you have also affect your loan approval. The down payment you need to buy a home varies by loan type and having a lower credit score can increase the amount of money you need to put down, in some cases.

Credit score needed to buy a house by loan type

By and large, the credit score you need for a home purchase depends on the type of mortgage you want and can qualify for. For example, some borrowers are eligible for certain government-backed loans if they’re military borrowers or if they want to buy a rural property.

The chart below shows the minimum credit score and down payment amounts required for different loan types.

As you can see, you'll need to put down 3% to 5% to qualify for a conventional mortgage in most cases. With FHA loans, on the other hand, your minimum down payment depends on your credit score.

If you're a first-time homebuyer who wants to purchase a home with an FHA loan and you have a credit score of at least 500 — but less than 580 — you'll need to come up with a 10% down payment. Meanwhile, having a credit score of 580 and above can help you put just 3.5% down with an FHA loan. Keep in mind, though, that FHA-approved lenders may have higher credit score minimums.

While the VA and USDA don’t set minimum credit score requirements for those loans, approved lenders usually do. You typically need a credit score of at least 620 to qualify for these mortgages, and that's after you meet other borrowing guidelines.

How your credit score affects your mortgage rate

Meeting the minimum credit score requirement for a home loan doesn't necessarily mean you'll qualify for the best rates and terms. Instead, the minimum score is what you need for preapproval, and it will be taken into account along with other factors, like your income and other debts.

Major credit scoring models like FICO and VantageScore use a credit score range of 300 to 850, and scores that are well above the minimum can lead to considerable financial savings. Using the FICO scoring model, for example, a credit score of 670 or higher is considered "good" and may lead to qualifying for the best mortgage rates. However, a credit score of 740 or higher is considered "very good" and a score of 800 or higher is considered "exceptional."

How great is the difference based on your credit score? According to the Fair Isaac Corporation (FICO), someone with a credit score of 760 to 850 could qualify for an APR of 6.359% on a 30-year, fixed-rate mortgage based on today's rates, whereas someone with a score of 620 to 639 might pay an 7.948% APR instead.

Here's how these numbers shake out in terms of the monthly mortgage payment (principal and interest) and total interest paid over a 30-year term for a $350,000 home loan.

The chart above reveals how a lower credit score can cost you in the long run. With a credit score of 620 to 639 in this example, you’d pay almost $135,222 more in interest throughout a 30-year home loan compared to someone with a credit score of 760 or higher.

The monthly payment is also $375.62 higher with a lower credit score, which might impact how much money you can borrow in the first place. Mortgage lenders base affordability on how much of your gross monthly income goes towards monthly debt payments (including your new housing payment), and most want to see a total DTI ratio of 43% or less.

Tips to increase your credit score before buying a house

Taking steps to improve your credit score now is a smart move no matter what type of mortgage you plan to apply for in the future. After all, a higher credit score can help you qualify for more types of home loans, as well as a lower interest rate and better loan terms.

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To help you boost your credit score before you apply for a mortgage, here are some tips to follow:

• Apply for a credit-building product: If your credit score needs work or is below the "fair" range of 580 to 669, using a credit-building product like a secured credit card or a credit-builder loan responsibly could improve it.
• Check your credit reports for errors: Look over your credit reports with the three credit bureaus — Experian, Equifax and TransUnion — to check for errors. You can do this for free at AnnualCreditReport.com. If you find errors, take steps to dispute the information .
• Keep the cards and accounts you have: Keeping old accounts you have open can increase the average length of your credit history and boost your score. Opening new accounts can hurt your credit score in the short term, though, so keep the accounts you already have and avoid opening new ones if possible.
• Pay your bills on time: The most important factor that makes up your credit score is your payment history, so you can't afford to miss a payment when you're trying to build your credit . Pay all your bills early or on time, even if you have to set them up on auto-pay or put due dates into your calendar as a reminder.
• Pay down debt: How much debt you owe compared to your credit limits (known as your credit utilization rate) also affects your credit score. Most experts recommend keeping this amount below 10% of your available credit (30% at the maximum). Paying down revolving debt like credit card balances can help tremendously in this category.

The AP Buyline roundup

The credit score you need to buy a house could be as low as 500, but you'll qualify for a lower down payment amount and better mortgage rates and terms if you can improve your score first. If you're able to get your credit score above 620 before you apply for a mortgage, you might qualify for a conventional home loan.

Having a credit score of 670 or higher could also help you qualify for a lower interest rate, leading to considerable financial savings over time. Take steps to improve your credit now — while you still have time — if you plan to purchase a home in the future. If you get your credit score into the "good" or "very good" range while you work on saving up for a down payment, your future self will thank you.

Frequently asked questions (FAQs)

Can i get a mortgage with a low credit score.

It's possible to get a mortgage with a credit score as low as 500, although the type of home loan you can qualify for will be limited and many lenders have higher credit score minimums. For example, you may be able to get an FHA loan with a credit score of 500 if you put down at least 10% of the home’s purchase price.

Will I get a better deal on a mortgage with a higher credit score?

A higher credit score can help you qualify for lower interest rates when you apply for a mortgage. Lower rates also mean lower monthly payments and lower interest costs over the life of the loan.

What is a decent credit score to buy a house?

Most lenders want to see a credit score of 620 or higher when you apply for a home loan. Additionally, having a higher credit score can give you access to lower down payment requirements, lower interest rates and other competitive loan terms.