What Is the Average Credit Score in the US?

Your credit score is one of the most important numbers in your financial life. It has a huge influence on whether you can get approved for credit cards, loans, mortgages, insurance policies, apartment rentals, and more. A higher score typically means better terms and lower interest rates. So where does the average American stand when it comes to credit scores? Let’s take a detailed look.

What is a Credit Score?

A credit score is a three-digit number that gives lenders an idea of how likely you are to repay debt on time. Credit scores range from 300 to 850. The higher the number the lower the perceived credit risk.

Credit scores are calculated based on the information in your credit reports from the three major credit bureaus – Equifax, Experian, and TransUnion The most widely used credit scores are FICO scores and VantageScores Both look at the same five factors but weight them differently

• Payment history – Are you paying your bills on time? Late payments can really hurt your scores.

• Credit utilization – This is how much of your available credit you are using The lower the better,

• Credit history length – In general, the longer you’ve had credit, the better.

• Credit mix – Having different types of credit – credit cards, installment loans, mortgages, etc. – can help your scores.

• New credit inquiries – Too many new credit applications in a short period can lower your scores.

Credit scores are constantly updated based on your credit report information. Monitoring your scores regularly can help you keep tabs on your credit health.

The National Average Credit Score

According to Experian, as of the third quarter of 2024, the average FICO credit score in the United States is 715. This is based on a sample of millions of consumers with credit reports and FICO scores.

The average credit score has held steady at 715 for the past few years. It increased from 711 in 2020 to 716 in 2021 likely due to consumers spending and borrowing less during the pandemic. But the average score has leveled out since then.

Here’s how the national average FICO score has changed over the past several years:

• 2018 – 704
• 2019 – 706
• 2020 – 711
• 2021 – 716
• 2022 – 716
• 2023 – 715
• 2024 – 715

A score of 715 falls in the “good” credit range, according to Experian. Consumers with good credit tend to get approved for credit and qualify for better interest rates, although other factors also come into play.

The average VantageScore – another type of credit scoring model – is slightly lower at 701 as of March 2024, according to VantageScore data.

So 715 is considered an average or decent credit score nationally. But averages vary by state, age, and other factors.

Average Credit Scores by State

There is some variation in average credit scores across different states. This Experian data from 2023 shows the state-by-state breakdowns:

• Highest averages: Minnesota (742), New Hampshire (736), Vermont (737)
• Lowest averages: Mississippi (680), Louisiana (690), Texas (695)

In general, Midwestern states like Minnesota, Iowa, and Wisconsin tend to have among the highest average credit scores. Southern states like Mississippi, Louisiana, and Alabama tend to have lower averages.

The range goes from 680 in Mississippi up to 742 in Minnesota. That’s a difference of 62 points, which can make a big difference in interest rates. For example, on a $300,000 mortgage, a borrower with a 740 credit score might pay $1,548 per month at a 5% rate. But a borrower with a 700 score might pay $1,683 per month at a 5.5% rate.*

Some possible reasons certain states score higher:

• Higher average incomes
• Lower unemployment rates
• Higher educational attainment
• Lower consumer debt levels
• Higher homeownership rates

There are always exceptions. Some parts of Louisiana have very high average credit scores while some parts of South Dakota have lower averages. So these state differences just show general trends.

Average Credit Scores by Age

Younger generations tend to have lower credit scores on average, while older generations have higher scores. This Experian data from 2024 shows the averages by generation:

• Gen Z (18-25): 681
• Millennials (26-41): 691
• Gen X (42-57): 709
• Baby Boomers (58-76): 746
• Silent Generation (77+): 760

A few key reasons help explain the differences:

• Credit history length – Older consumers have had decades to build credit, while younger generations have had less time. FICO scores factor in the length of your credit history.

• Credit experience – Younger consumers are less likely to have a variety of credit types. FICO scores look at your credit mix – having credit cards, installment loans, mortgages, etc.

• Income trajectory – Incomes tend to rise over time as people gain skills and experience. Higher incomes make it easier to manage credit.

Still, there has been improvement. Average scores for millennials and Gen Z are significantly higher now than past generations when they were those ages.

What is a Good Credit Score?

The term “good” is subjective, but FICO and VantageScore group credit scores into categories as a guide:

FICO Score Ranges

• 800-850: Exceptional
• 740-799: Very Good
• 670-739: Good
• 580-669: Fair
• 300-579: Poor

VantageScore Ranges

• 750-850: Excellent
• 700-749: Good
• 650-699: Fair
• 550-649: Poor
• 300-549: Very Poor

So a “good” credit score is generally 670 or higher for FICO and 700 or higher for VantageScore. But whether a lender considers you a good credit risk also depends on the type of loan, economic factors, and the lender’s own criteria.

Even within the good credit range, a 740 score will get better rates than a 700 score. So aim for the highest score possible. Monitoring your credit scores regularly can help you keep improving.

Takeaway

• The average FICO credit score in the US is currently 715.
• Average scores vary somewhat by state and age.
• A score of 670+ is generally considered good credit.
• Checking your scores often helps you monitor your credit health.

Knowing the average scores and score ranges is useful context. But the most important thing is understanding your own credit situation. Regularly checking credit reports and scores allows you to catch any issues early and work toward the best score for your needs.

A 700 credit score is a “good” credit score, and it’s relatively common. While it’s not the average, a 700 score is considered within the range of “good” credit.

A 750 credit score is considered “very good” to “excellent” and is above the average credit score in the U.S.. About 24% of consumers have a FICO® Score in the 750-799 range, according to The Motley Fool.

A 600 credit score is relatively common, with approximately 17% of all consumers having scores in the “fair” range, which includes 600. This places a 600 score below the national average, which is around 716 for FICO scores.