What is the average credit score in the US?

Do you know your credit score?

According to FICO, the average credit score is 716, while the VantageScore reports 702 is the median rating. Credit scores fall within a range of 300 to 850, categorized from “poor” to “excellent.” The breakdown is as follows:

  • Exceptional: 800 and above.
  • Very good: 740-799.
  • Good: 670-739.
  • Fair: 580-669.
  • Poor: 579 and lower.

Ratings tend to improve with age, as older generations often carry less debt, use less available credit, and have fewer missed payments than younger individuals. As of September 2022, ratings by generation were:

  • Silent Generation: 760
  • Baby Boomers: 742
  • Generation X: 706
  • Millennials: 687
  • Generation Z: 679

What states have the highest ratings?

Risk scores also vary by state, with Minnesota having the highest typical credit score at 742, and Mississippi the lowest at 680. States with higher ratings typically exhibit lower credit utilization rates, fewer late payments, and lower debt levels.

How to improve my score?

Improving scores is crucial because loan applications, credit card eligibility, job prospects, and more depend on your credit scores. To improve your credit score, follow these tips:

  1. Always Pay Bills On Time: Timely payments are vital for maintaining a good credit score. Even making the minimum payment is better than missing a due date.
  2. Keep Your Utilization Rate Low: Aim for a credit utilization rate of less than 30%, meaning you should use no more than 30% of your available credit.
  3. Don’t Close Old Accounts: Instead of closing unused credit accounts, consider keeping them open. Closing an account may negatively affect your credit score.
  4. Plan for Major Credit Purchases: When planning significant purchases like a mortgage, avoid opening or closing accounts in the months leading up to the application.
  5. Check Your Credit Report Regularly: Review your credit report periodically to catch and correct any errors. You can access your credit report for free from each of the three major credit bureaus weekly at AnnualCredit Report.com.
  6. Dispute Credit Report Errors: You should dispute errors on your credit reports. Inaccurate and derogatory information can decrease your credit score. Click HERE for a free sample credit report dispute letter.

Why do credit scores matter?

Your credit score plays a crucial role in your financial life, affecting your ability to secure a loan, the loan terms, interest rates, job opportunities, and even housing options. Building and maintaining a strong credit rating is essential for achieving financial goals and securing your future.

Do you need a lawyer to help you with credit report errors?

The Adkins Firm represents consumers in the Houston metro area who have errors on credit, employment background and tenant screening reports. We help our clients clear their names. Do you have errors on a credit report, background report?  Have you disputed the credit report error and the inaccurate information was verified as accurate? If you answered yes, then you may have a claim under the federal Fair Credit Reporting Act.  Contact us for a free case review at (214) 974-4030.