The Average Credit Score in America

The average credit score in 2024 was 715, the same as 2023 and one point higher than 2022, according to Experian. The nationwide average FICO® Score has mostly been on the rise since 2010, despite inflation and record credit card debt.

Motley Fool Money has the latest data on the average credit score by age, income, and location, plus how rare it is to have a score within the exceptional range of 800 to 850.

Credit score chart: What is a good credit score?

A good credit score on the FICO scale, the most widely used credit score, falls between 670 and 739.

Here's how FICO® Scores breakdown from poor to excellent:

• 800 to 850: Exceptional
• 740 to 799: Very good
• 670 to 739: Good
• 580 to 699: Fair
• 300 to 579: Poor

The three major credit bureaus (Equifax, Experian, and TransUnion) calculate credit scores based on information creditors report to them on consumers, such as whether bills are being paid on time and how much credit is being utilized.

Why a high credit score is important to financial well-being

Credit scores are a crucial part of personal finances:

• Credit scores are used by financial institutions to determine whether someone should be approved for a loan, like an auto loan or mortgage, and the interest rate at which the loan is provided.
• Landlords and insurance companies use credit scores to screen potential customers.
• Credit card companies use credit scores to decide who qualifies for certain credit cards. Americans with higher credit scores are more likely to qualify for the best credit cards.

The average credit score: 715

The average FICO® Score is 715, well within the "Good" range, according to Experian.

That is unchanged from 2023 and up one point from 2022. The average FICO® Score has steadily increased since 2010, with 2013 being the only down year since then.

The average VantageScore: 702

The average VantageScore is 702, and hasn't changed since March 2024. The nationwide average VantageScore has climbed steadily from 685 in January 2020.

VantageScore is an alternative to the FICO® Score, and was developed by Equifax, Experian, and TransUnion in 2006.

How are Vantage and FICO® Scores calculated?

Even though FICO® Scores and VantageScores use similar data, they are calculated differently.

Here are some of the similarities and differences between the two credit scores.

Similarities

• Both use a 300 to 850 range for credit scores.
• Both use credit report information from Equifax, Experian, or TransUnion.
• Both are used by financial institutions to determine lending risk.

Differences

The main difference between FICO and Vantage scores is the scoring models each uses.

FICO uses the following factors and weights to determine scores:

• Payment history: 35%
  • Whether bills are paid on time.
• Credit utilization: 30%
  • What percentage of available credit is in use.
• Length of credit history: 15%
  • Age of accounts.
• New credit: 10%
  • Number of new accounts, time since a new account was opened, and recent hard inquiries.
• Credit mix: 10%
  • Types of credit held.

VantageScore doesn't provide specific weights for its factors but does say how influential they are.

• Payment history: Extremely influential
• Age and type of credit, credit utilization: Highly influential
• Total balances: Moderately influential
• Available credit and recent inquiries: Less influential

There are a few other differences between the two scores. VantageScore includes rent, utilities, cable, and phone bill payments in its methodology, while FICO does not. VantageScore also more heavily weights late mortgage payments than other late payments.

Average credit score by age

Older Americans have higher credit scores than younger Americans, with the silent generation posting an average score of 760 compared to Gen Z's average score of 681, according to Experian.

Baby boomers and the silent generation are the only generations to have average credit scores in the "very good" range. Gen X, millennials, and Gen Z have average scores in the "good" range.

One reason credit scores are higher for older Americans is that they have a longer credit history, which is an important factor in how credit scores are calculated. Older Americans also are more likely to have a more diversified credit mix, potentially including an auto loan and a mortgage.

Credit score distribution: How rare is an exceptional 800 to 850 score?

Twenty-four percent of Americans have a credit score between 800 and 850, considered "exceptional" by FICO. A credit score at the top of that range -- 850 -- is perfect.

Twenty-four percent have a FICO® Score between 750 and 799, making the "very good" bracket.

Nearly half of Americans score between 750 and 850, in the very good to exceptional range, while 25% of Americans have a score between 300 and 649, the poor to fair credit score range.

While that segment is relatively small, it still represents a significant number of Americans who may have trouble finding credit and face higher interest rates when taking out a loan, which in turn can make it more difficult to raise their credit scores.

Perfect 850 credit score distribution

1.54% of Americans have the coveted perfect 850 FICO® Score

Baby boomers and those older make up the majority of Americans who have a perfect 850 FICO® Score, some 66%. Gen X makes up 26% of Americans with a perfect FICO® Score millennials and those younger make up less than 8%.

Americans with a perfect 850 score have some things in common, according to Experian.

They tend to:

• Have more credit cards than the average American (5.8 credit cards for those with a perfect score compared to 3.9 credit cards for all consumers).
• Have a lower credit card balance ($3,028 compared to $6,501).
• Have lower auto loan, mortgage, and non-mortgage loan balances.
• Have no delinquent payments that would show up on a credit report, compared to the average American's 1.5 delinquent payments.

Average credit score by income

Income and credit scores are correlated, according to the Federal Reserve, which found in 2020 that lower-income Americans are more likely to have a lower credit score.

The median credit score for low-income Americans that year was 658, which falls in the fair range. This can make it difficult to access credit at an affordable rate, which in turn can make it more difficult to improve their credit score.

On the other hand, high-income and middle-income Americans have credit scores in the very good range.

Average credit score by state

Residents in Minnesota have the highest average credit at 742, while Mississippians have the lowest average credit score at 680, according to Experian.

Average credit scores in six states increased from 2023 to 2024 and decreased in 12 states. Scores were unchanged year over year in 32 states.

How to boost your credit score

Raising your credit score is important for getting approved for the best credit cards and loans. Thankfully the checklist for doing so isn't too lengthy.

• Pay bills on time: Payment history is the most important part of how FICO® Scores and VantageScores are calculated, and a single late payment can lower your credit score. Setting up autopay for recurring payments can make improving your payment history much simpler. Opening a credit card for fair/average credit and making payments on time can help build payment history.
• Pay down debt: Having a healthy credit utilization ratio -- the credit card debt held relative to your overall credit limit -- is the second most important aspect of credit scoring. To keep your credit utilization ratio low, pay off your credit card each month in full. If that's not possible, aim for a ratio of 30% or less. Asking your credit card provider to increase your credit limit can also lower your credit utilization ratio.
• Limit activities that generate hard credit inquiries: Hard credit checks can decrease your credit score and occur when applying for a new credit card or loan.