The average credit score in the U. S. is 695 based on the VantageScore model and 714 on the FICO scoring model, which means the average American has a good credit score. However, credit rating averages vary by geography and demography. For example, while the average credit score in the North is around 728, it is about 30 points higher in all other parts of the country. In addition, people in their 20s have an average credit score of 679, while people in their 50s have an average credit score of more than 60 points higher. Credit rating statistics can give us a better idea of how good our credit rating is relative to that of our peers. Credit rating averages can also tell us a lot about the health of consumer finances and the strength of the economy. It's important to note that while there are many different types of credit scores, the most popular ones use the standard range of credit scores of 300 to 850. They are also based on the same information (our credit reports) and produce very similar results in most cases, according to the Consumer Financial Protection Office. So it doesn't really matter if an average credit rating is based on a VantageScore or FICO model, as long as the data is consistent. After all, there is no “real credit score”. The credit score can tell us a lot about the health of consumers and the economy as a whole. This is especially true when looking at credit rating averages over time. However, credit rating statistics tend to be relatively slow to reflect major economic events, making them unreliable for predictive purposes. Statistics show that credit scores tend to improve as people age. As we can see below, older people have the highest credit scores, on average. And scores decrease by age group until we reach the youngest cohort, which has the lowest average credit score. The accumulation of wealth and experience over time is the most likely explanation for this. As people age, they also tend to be more financially responsible and secure, qualities that lend themselves to improving their credit. And the more time we have, the more opportunities we have to recover from mistakes. Another reason is the way credit ratings are calculated. In fact, seven of the ten states with the highest average credit scores are in the West, North or New England. That said, every region has at least one state whose residents have good credit, on average. So while job opportunities, living costs and other local factors definitely affect credit score averages, it's also true that credit scores can thrive anywhere - anyone can do it as long as they spend within their means and always pay their bills on time. It's interesting to see how the average credit score changes depending on income level too - higher average credit scores seem to overlap with middle-income levels, not just higher ones. When a person approaches retirement they have a long detailed credit history and many types of credit; similarly a 50-year-old person could have a very low credit score because they got too much into debt and made late payments. Meanwhile demographic information such as education level and average income can affect average credit scores from state to state. Newer accounts will reduce the average age of an account which in turn could lower your credit score; understanding your credit profile can help you understand what lenders see when they look at your credit report. While younger people may be at a disadvantage people with a short background may get favorable scores based on the rest of their report - so it should come as no surprise that older people tend to have higher credit scores than their younger counterparts.
