The Reports 2021: Average Credit Score in America

Average Credit Score in America

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, number of accounts opened, how long you’ve had them open for 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 a high credit score 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

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.

Average credit score by age

Average credit score by age

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 your score!

For context:

  • Low income: Up to 50% of the area median income

  • Moderate income: Greater than 50% and up to 80% of the area median income

  • Medium income: Greater than 80% and up to 120% of the area median income

  • High income: More than 120% of the area median income

Average credit scores throughout the U.S.

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 with686! 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%. Average Credit Score in America is the not same for all state.

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

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 the help of AI.

The average credit score of home buyers in the United States is 678. This is not too bad, but it can be better with the help of AI. We follow up on this report by considering what can be done to improve individual’s 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

Resources:

Top 10 States With the Best Credit Scores

Top 10 states with the worst credit scores

How to Get the World’s Highest Possible Credit Score?

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