What is the Average Credit Score in America? A blog about average credit scores in America.
A credit score is a numerical notation that represents a person’s creditworthiness based on a level of study of their credit files. Credit scores, which are three-digit numerical figures, provide a glimpse of a potential applicant’s creditworthiness. When it comes to getting a new loan, the better your credit score is, the more likely you are to get accepted. A lender or landlord may use one of two credit scoring algorithms when evaluating your credit, such as VantageScore or FICO, with both models having a range of 300 to 850 points.
For those interested in seeing where they rank among the hundreds of millions of other Americans, this post is for you. The average credit score of a country is a valuable instrument in this attempt.
According to statistics from annual research conducted by Experian in 2020, the average FICO credit score in the United States was 710 points.
Using a scale of 300 to 850, a good credit score is between 670 and 739. This means that 69% of the population had a credit score of 670 or higher in 2020.
In 2021, the average FICO score in the United States was 716. Therefore, the average FICO score rose by 6 points compared to the previous year’s. This is a new all-time high, and it simply means that more individuals are paying their bills on time and utilizing less of their available credit.
Statistically, the average FICO Score in the United States has increased steadily since 2009, and it has climbed by 30 points over that period. In addition, the average VantageScore in the United States is 698, which is a new record and 10 points higher than in 2020.
Average credit scores vary based on your age, region, income level, and other factors. People over the age of 75, for example, have the greatest credit ratings, and the average FICO score of those aged 56 to 74 is the second-highest. In addition, the average score for low-income Americans is 658, while the highest-earning Americans have a credit score of 774 on average.
However, several recommended practices for keeping a solid credit score may set you up for success and make a significant difference in your financial health and borrowing ability later on.
Credit scores are an essential part of your credit report and identity. If you fall below the average score, it’s prudent to make strategic moves to increase your score. On the other hand, if you are part of the few who don’t care about their credit score, you should check today because it affects many important aspects of your life.