What’s the Average Credit Score in the US? A State-by-State Breakdown

Ever wondered how your credit score stacks up against the rest of the country? Well, wonder no more! We’re diving deep into the world of credit scores, exploring the average credit score in the US and breaking it down state by state.

The Credit Score Landscape: A National Snapshot

As of February 2021, the average credit score in the US sits at 698, based on the VantageScore® 3.0 credit score model This score serves as a benchmark, giving you a general idea of where you stand financially compared to your fellow Americans.

But remember, credit scores are like snowflakes – no two are exactly alike. Your individual score depends on a variety of factors, including your payment history, credit utilization, and the length of your credit history.

Credit Score Showdown: State by State

Curious how your state measures up? Check out the table below for the average VantageScore® in each state. as of February 2021:

The Mystery of Multiple Credit Scores: Why You Have More Than One

Hold up, you might be thinking, I thought I only had one credit score? Well, buckle up, because the truth is a bit more complex. You actually have multiple credit scores, each calculated by different credit bureaus using slightly different formulas.

Think of it like this: you have three different teachers grading your work, each with their own grading style. While your overall understanding of the subject might be the same, your grades might vary slightly depending on who’s assessing your work.

FICO vs. VantageScore: What’s the Difference?

Two of the most common credit scores you’ll encounter are FICO® and VantageScore®. While they both aim to provide a snapshot of your creditworthiness, they differ in their approach.

FICO® scores are used by most lenders and are considered the gold standard in the industry. They take into account five key factors: payment history (35%), amounts owed (30%), length of credit history (15%), new credit accounts (10%), and mix of credit used (10%).

VantageScore® is a newer player in the game, but it’s quickly gaining traction. It also considers five key factors, but with a slightly different emphasis: payment history (extremely influential), credit utilization (highly influential), length of credit history and credit mix (highly influential), amounts owed (moderately influential), recent credit behavior (less influential), and available credit (less influential).

Decoding Credit Score Ranges: What’s a Good Score?

Credit scores typically fall within a range of 300 to 850. Here’s a general breakdown of what each range signifies:

• 800 and above: Excellent credit, indicating a low risk of defaulting on payments.
• 740 to 799: Very good credit, suggesting a responsible borrower with a solid track record.
• 670 to 739: Good credit, meaning you’re a reliable borrower but could improve in certain areas.
• 580 to 669: Fair credit, indicating a higher risk of defaulting on payments.
• 579 and below: Poor credit, suggesting a significant risk of defaulting on payments.

Remember, these are just general guidelines. Your individual credit score is just one piece of the puzzle when it comes to your financial well-being.

Keeping Tabs on Your Credit Score: Where to Check

Monitoring your credit score is crucial for maintaining good financial health. It allows you to identify potential issues early on and take steps to improve your score.

Here are a few ways to check your credit score:

• Equifax: Create a myEquifax™ account to get six free Equifax credit reports each year. You can also enroll in Equifax Core Credit™ to receive a free monthly Equifax credit report and a free monthly VantageScore® 3.0 credit score.
• AnnualCreditReport.com: Get free weekly Equifax credit reports through April 2022.
• Credit card companies: Some credit card companies offer free credit score monitoring as a perk to their cardholders.

Boosting Your Credit Score: A Few Tips

If your credit score isn’t where you want it to be, don’t fret. There are steps you can take to improve it over time. Here are a few tips:

• Pay your bills on time: This is the single most important factor in your credit score.
• Keep your credit utilization low: Aim to use less than 30% of your available credit.
• Don’t apply for too much credit at once: Each time you apply for credit, a hard inquiry is placed on your credit report, which can temporarily lower your score.
• Become an authorized user on a responsible credit card: This can help you build credit history without having to open a new account.
• Dispute any errors on your credit report: Mistakes happen, and it’s important to correct any inaccuracies that could be dragging down your score.

The Takeaway: Credit Scores and Your Financial Journey

Your credit score is a valuable tool that can impact your financial life in many ways. By understanding how credit scores work and taking steps to improve yours, you can open doors to better interest rates, lower insurance premiums, and more. So, keep an eye on your credit score, make informed choices, and watch your financial future flourish.