The Reports 2021: Average Credit Score in America

  • Posted on: 21 Dec 2022
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  • The average credit score in America is 677. However, the median credit score is 662. This means that half of the people in America have a credit score lower than 662 while the other half has a credit score higher than this number.

    The way your credit score is calculated depends on where you live. Credit scores are calculated based on your FICO scoring model which looks at six different factors that affect how likely you are to pay back loans and other forms of debt. They can be affected by things like your age, income, the number of accounts opened, how long you’ve had them open and what kind of new account or balance transfer offer was made to you recently.

    The United States Federal Reserve sets a national average for the credit score to be used as a benchmark for lending decisions. However, the average varies from state to state.

    The credit score is a measure of an individual's risk of being financially irresponsible. People with high credit scores are considered to be more trustworthy and less likely to default on their debts.

    FICO credit scores break down in the following manner:

    • 800 to 850: Exceptional

    • 740 to 799: Very good

    • 670 to 739: Good

    • 580 to 669: Fair

    • 300 to 579: Very poor

    Average Credit Score Charts

    The average credit score has generally improved since 2005, but slight dips were seen around the Great Recession that ended in 2009. A large number of people declaring bankruptcy or defaulting on their loans would have caused their scores to plummet which then lowered the overall average for all individuals with this particular trait according to Experian's research from last year.

    What is the average credit score in 2021?

    Depending on which study you look at, the average credit score ranges from 636 to 670. Knowing your credit score is important because it can affect your ability to get a loan, rent an apartment, or even get a job.

    Average credit score by age 2021

    In a bid to get out from under their parents' shadow, Millennials are taking on more debt than ever before. This generation has an average credit score of 680 which is considerably low when compared with baby boomers who have 736 - proving that young adults need better financial knowledge if they want success in this world!

    Average credit score by generation

    Debt to income ratio may not directly affect your credit score but it does have an indirect effect. One factor lenders consider when modeling an individual's risk for debt is their monthly utilization rate of available funds; the percentage that you're using each month and how much total has been authorized in comparison with what one might need at any given time (this number will vary based on current balances).

    The lower one's income, the lower their line of credit is likely to be.

    You can see that credit scores are highly correlated with income. This means it is easier for lower-income individuals to eat up what's available, increasing their percentage of total utilization in order to make sure they don't default on any loans or risk hurting their scores!

    For context:

    • Low income: Up to 50% of the area's median income
    • Moderate income: Greater than 50% and up to 80% of the area's median income
    • Medium income: Greater than 80% and up to 120% of the area median income
    • High income: More than 120% of the area's median income

    What is the average credit score in America?

    The lowest credit scores in America can be found all over the South. Mississippi has a rating of 675, Louisiana is at 684 and Alabama comes close behind with 686! Meanwhile, Minnesota (739) and Wisconsin boast average ratings higher than most other states' 732 respectively Mining for insight? Take note that these are not only some low-down dirty places but also key industrial centers where major industry makes its home - including oil refining, steel production as well as farming on soybeans 1904%. The average credit score by the state is the not same for all states with managed national average credit scores.

    49

    Alabama

    686

    $5,047

    28

    Alaska

    714

    $6,617

    36

    Arizona

    706

    $5,157

    44

    Arkansas

    690

    $4,791

    26

    California

    716

    $5,120

    14

    Colorado

    725

    $5,541

    15

    Connecticut

    723

    $6,040

    33

    Delaware

    710

    $5,462

    30

    District of Columbia

    713

    $5,671

    38

    Florida

    701

    $5,623

    46

    Georgia

    689

    $5,693

    10

    Hawaii

    727

    $5,614

    19

    Idaho

    720

    $4,582

    26

    Illinois

    716

    $5,365

    34

    Indiana

    707

    $4,651

    12

    Iowa

    726

    $4,289

    24

    Kansas

    717

    $5,063

    39

    Kentucky

    698

    $4,521

    50

    Louisiana

    684

    $5,127

    17

    Maine

    721

    $4,676

    31

    Maryland

    712

    $5,977

    7

    Massachusetts

    729

    $5,141

    28

    Michigan

    714

    $4,692

    1

    Minnesota

    739

    $4,767

    51

    Mississippi

    675

    $4,587

    34

    Missouri

    707

    $4,950

    12

    Montana

    726

    $4,785

    9

    Nebraska

    728

    $4,819

    41

    Nevada

    695

    $5,422

    7

    New Hampshire

    729

    $5,327

    17

    New Jersey

    721

    $5,978

    43

    New Mexico

    694

    $4,948

    23

    New York

    718

    $5,414

    37

    North Carolina

    703

    $5,121

    5

    North Dakota

    730

    $4,865

    32

    Ohio

    711

    $4,888

    44

    Oklahoma

    690

    $5,271

    10

    Oregon

    727

    $4,681

    19

    Pennsylvania

    720

    $5,080

    21

    Rhode Island

    719

    $5,256

    46

    South Carolina

    689

    $5,310

    3

    South Dakota

    731

    $4,633

    40

    Tennessee

    697

    $5,006

    48

    Texas

    688

    $5,848

    15

    Utah

    723

    $4,900

    3

    Vermont

    731

    $4,653

    24

    Virginia

    717

    $5,992

    5

    Washington

    730

    $5,238

    41

    West Virginia

    695

    $4,686

    2

    Wisconsin

    732

    $4,376

    21

    Wyoming

    719

    $5,182

    An average credit score of home buyers

    The Average Credit Score in America is 678. It's not too bad, but it can be better with help.

    The average credit score of home buyers in the United States is 678. This is not too bad, but it can be better with help. We follow up on this report by considering what can be done to improve individual credit scores and how technology tools alongside human skill sets are needed for that to happen.

    Rank

    State

    Average credit score

    51

    Alabama

    713

    11

    Alaska

    738

    35

    Arizona

    726

    28

    Arkansas

    729

    6

    California

    741

    16

    Colorado

    734

    11

    Connecticut

    738

    1

    District of Columbia

    754

    8

    Delaware

    740

    28

    Florida

    729

    39

    Georgia

    723

    2

    Hawaii

    748

    20

    Idaho

    733

    25

    Illinois

    730

    46

    Indiana

    720

    28

    Iowa

    729

    42

    Kansas

    722

    34

    Kentucky

    727

    46

    Louisiana

    720

    14

    Maine

    735

    16

    Maryland

    734

    6

    Massachusetts

    741

    49

    Michigan

    718

    28

    Minnesota

    729

    44

    Mississippi

    721

    42

    Missouri

    722

    28

    Montana

    729

    8

    Nebraska

    740

    25

    Nevada

    730

    10

    New Hampshire

    739

    3

    New Jersey

    746

    49

    New Mexico

    718

    4

    New York

    745

    22

    North Carolina

    732

    39

    North Dakota

    723

    37

    Ohio

    725

    44

    Oklahoma

    721

    16

    Oregon

    734

    20

    Pennsylvania

    733

    22

    Rhode Island

    732

    22

    South Carolina

    732

    13

    South Dakota

    737

    39

    Tennessee

    723

    35

    Texas

    726

    16

    Utah

    734

    5

    Vermont

    743

    25

    Virginia

    730

    14

    Washington

    735

    37

    West Virginia

    725

    28

    Wisconsin

    729

    46

    Wyoming

    720