Published in: Research | Oct. 29, 2019

Average Credit Score in America: 2019 Report

Credit scores affect virtually all aspects of financial life. Landlords, utility companies, cell phone service providers, cable and internet companies, and even employers check credit scores. And both credit histories and credit scores are often used as a proxy to judge whether you are a trustworthy customer or employee.

Lenders, as well, use credit scores to make decisions on whether to allow a person to borrow money and what interest rate and loan terms should apply.

What many people don't realize, however, is that there are actually multiple credit scores including:

  • FICO® Scores: These use a credit scoring model designed by the Fair Isaac Corporation.
  • VantageScores: This is an alternative to FICO developed by Equifax, Experian, and TransUnion in 2006.

Early models of the VantageScore system scored consumers on a scale of 501 to 990. Today, however, both FICO and VantageScores are on a scale of 300 to 850 with higher scores preferred. A score of over 740 is generally considered to be a very good score.

Knowing your score is important to assess whether you're a well-qualified borrower who is likely to be approved for loans at favorable terms, or whether there is room for improvement. It's also helpful to understand how your score compares to the average, both in the United States generally and for people within your demographic group.

The data below on the average credit scores in America will tell you everything you need to know to see where you stand when it comes to your credit.

Summary of key findings

  • The average FICO® Score in the United States rose 14 points between 2008 and 2018. The average FICO® Score reached 704 in 2018, which is considered to be a good score.
  • Average credit scores climb as people age. Americans aged 60 and over have an average FICO® Score that is 88 points higher than that of the youngest adults.
  • Average credit scores vary by state. Mississippians have the lowest average score at 647 while Minnesota residents have the highest average score at 709.
  • Homeowners generally have higher credit scores than renters, accounting for 73% of consumers with credit scores above 750.
  • Almost 1 in 5 Americans have no credit score at all. An estimated 11% of the adult population has no credit record and 8.3% of adults have an insufficient credit history to generate a credit score.

Average FICO® Score in the United States

The average FICO® Score in the United States has been steadily increasing for the past decade. As the below table shows, there was a 14 point increase in the average score from 2008 to 2018. In 2018, the average FICO® Score hit 704, which is classified as a good credit score.

Average FICO® Score by age

FICO® Scores tend to climb with age. In fact, Americans 60 and over have average credit scores that are 88 points higher than Americans aged 18 to 29.

This is unsurprising as length of credit history is a key component in both FICO and Vantage scoring models. Older Americans have also had more time to develop positive payment histories and to become more financially stable, so missed payments become less likely.

Average VantageScore in America

As of the first quarter of 2018, the average VantageScore in America was 694. The table below shows that the majority of Americans have VantageScores of 661 or higher and are considered prime or super-prime borrowers.

While VantageScores and FICO® Scores use the same scoring scale, the scoring model is different. VantageScore considers six factors including payment history, type and age of credit, percent of credit limit used, total debt balances, recent inquiries and credit behavior, and credit available. FICO focuses on payment history, amount owed relative to credit available, length of credit history, new inquiries, and the mix of different kinds of credit you have.

VantageScore breakdown, Q1 2018

Average VantageScore by generation

Average VantageScore data confirms that age correlates with higher average credit scores. The Silent Generation has an average VantageScore that is 95 points higher than the average credit score among those in Gen Z.

Average VantageScore by age and gender

Both age and gender play a role in credit scores. Data from the Federal Reserve shows that both younger and middle-aged single men have slightly higher VantageScores than single women within the same age groups. The research focused on singles because single men and women are responsible for making their own financial decisions while married couples are presumed to make joint decisions on financial issues.

Average credit score by state

Credit scores also vary dramatically by state. The average VantageScore in the lowest scoring state of Mississippi is 652 -- 61 points below Minnesota's highest scoring average of 713. Residents of just nine states have average VantageScores of 700 or above as the table below shows.

Average credit scores of homeowners vs. renters

Research from the Urban Institute found a strong correlation between high credit scores and homeownership. There are a number of factors contributing to this, including the fact that homeowners are often older and, as the data above shows, age correlates to higher scores.

Of course, credit scores of above 620 are typically required to qualify for conventional mortgages, although it is possible to obtain loans backed by the Federal Housing Administration with scores as low as 500. Since consumers with very low credit scores are effectively barred from buying homes, it naturally follows that homeowners would tend to have better credit on average.

VantageScores for homeowners and renters

Average credit score by income

Research from The Federal Reserve found only a moderate correlation between income and consumer credit scores according to data collected between 2007 and 2017. And after accounting for factors such as age and college education, the impact of income on credit scoring was found to be even more minimal than initial data would suggest.

The charts below show the distribution of credit scores among groups the Federal Reserve classified as high, mid, and low income consumers. While those in the lower income group were slightly more likely than their wealthier counterparts to have VantageScores below 700, the majority of Americans across each income level had scores between 800 and 1,000.

One reason income may not impact credit scores as much as expected is because a substantial number of lower income individuals do not have credit scores at all due to insufficient credit profiles. Individuals with more comprehensive credit histories likely have different financial habits than those of a similar income level who do not use traditional sources of credit.

Credit score distributions within high income group

Chart shows the distribution of credit scores among groups the Federal Reserve classified as high income consumers.

Image source: U.S. Federal Reserve.

Credit score distributions within mid income group

Chart shows the distribution of credit scores among groups the Federal Reserve classified as mid income consumers.

Image source: U.S. Federal Reserve.

Credit score distributions within low income group

Chart shows the distribution of credit scores among groups the Federal Reserve classified as low income consumers.

Image source: U.S. Federal Reserve.

Credit invisibles

While average credit scores tell you where you stand if you actually have a score, there are millions of Americans without sufficient credit histories to even receive a score. In fact, according to the Consumer Financial Protection Bureau:

  • 26 million U.S. consumers, or 11% of the adult population, were considered credit invisibles as of 2010. Credit invisibles have no record with credit reporting agencies at all, so no score can be generated.
  • 19 million U.S. consumers, or 8.3% of the adult population, had a credit record but their credit history was insufficient to assign them a credit score.

Some Americans are far more likely than others to lack a credit score:

  • Approximately 30% of consumers in low-income neighborhoods are credit invisible, compared with 4% of adults in upper-income neighborhoods.
  • An additional 15% of consumers in low-income neighborhoods have unscored records compared with 5% in upper-income neighborhoods.
  • 15% of Blacks and Hispanics are credit invisible, compared with 9% of Whites and Asians.*
  • 13% of Blacks and 12% of Hispanics have unscored records, compared with 7% of Whites.*

*Note: In CFPB's Credit Invisibles Report, they focused on four different racial or ethnic groups: Hispanics or Latinos (“Hispanics”), Non-Hispanic Asians (“Asians”), Non-Hispanic Blacks or African Americans (“Blacks”), and Non-Hispanic Whites (“Whites”).

The millions of Americans with no scores at all are often overlooked when comparing average credit scores. And unfortunately, they are often unable to obtain financing from conventional sources and are left at the mercy of predatory lenders including payday and car title loan providers.

Credit scores have improved across the board but millions of Americans are still left out

The data on average credit scores across America is clear: Credit scores have been improving across the board and the majority of Americans with scores have good credit at the very least. While this is positive news, there are still millions of Americans who have insufficient credit histories and who lack credit scores completely. These credit invisibles make it more difficult to determine the true impact of income on credit scores and likely mean that almost 2 in 10 Americans face unprecedented struggles accessing the financial products that others take for granted.

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