What is the average credit score?
When checking your credit, you might wonder how you stack up against the average credit score or relative to other people in your age group.
Both FICO and VantageScore use a scale of 300 to 850. They take into account many of the same credit factors but weight them slightly differently.
The average FICO in 2020 fell squarely into the “good” credit score range of 690 to 719. The average VantageScore was still in the “good” credit score range. The FICO saw an increase from April 2019, when the average score for Americans was 706. The average VantageScore in 2019 was 682.
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What is the average credit score by age?
The 2019 average FICO credit scores for each age group increased slightly for each age group compared to the 2018 scores. There was a dramatic difference – 88 points – between the scores of the youngest consumers and the youngest consumers. older. Here’s how FICO slices data from FICO 8 scores in September 2019:
VantageScore itself doesn’t break down scores by age, but Experian, one of the top three credit bureaus, tracks VantageScores by generation / age. Experian showed that the average credit scores for the youngest and oldest groups were separated by 75 points, based on its “State of Credit” report in October 2020:
Credit score less than 600? You’re not alone
FICO reported that around 19% of consumers had FICO scores below 600. credit score range likely have trouble qualifying for credit and pay higher interest rates or need to deposit deposits.
On the other hand, 22% of consumers had FICO scores above 800. These “superprime” scores mean that they are probably getting the best deal available when they borrow money and get access to the best credit cards in the world. rewards.
FICO compared the current payment behavior of consumers with 2009. In 2019, fewer consumers had payments 30 days late and consumers used less of their available credit compared to ten years ago, says Ethan Dornhelm , vice president of scores and predictive analytics at FICO. These two factors have a major effect on your score.
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How to build my credit?
Check your own credit health by looking at your credit reports. You are currently entitled to a free credit report from each credit bureau each week starting at annualcreditreport.com.
If you see incorrect negative information, you may dispute it to request its deletion. And check that the precise negative information is removed in time.
Then monitor your credit frequently to see your progress and monitor issues. You can monitor your free credit report and credit score, updated weekly, with NerdWallet.
For FICO and VantageScore, the most significant effects on credit come from:
Pay every bill, not just credit cards, on time.
By using 30% or less of your credit limits.