The average credit score in the U. S. increased by one point from its 714 average in the third quarter (Q3) of 2022 to 715 in 2023.
According to Experian data, the average FICO® ScoreTM in the United States was 715 in 2023, up one point from 714 in the third quarter (Q3) of 2022. It marks the 10th consecutive year that average FICO® Scores in the U. S. havent decreased on an annual basis. The last annual decline occurred in 2013.
In today’s world, credit scores are like the keys to unlocking financial opportunities They’re a crucial factor in everything from securing loans and mortgages to getting approved for credit cards and even landing your dream job But what exactly is the average person’s credit score, and how does yours stack up?
The National Average: A Snapshot of Creditworthiness
According to data from Experian, the average credit score in the US currently sits at 717, based on the FICO® Score model. This is a good indicator of the overall financial health of the nation, as it signifies a population with generally strong creditworthiness.
But here’s the thing: the average is just a single data point It doesn’t tell the whole story
A Deeper Look: Credit Scores by State
To get a more nuanced picture, let’s dive into credit scores by state using data from Equifax:
| State/Territory | Average VantageScore (Feb 2021) |
|---|---|
| Alaska | 697 |
| Alabama | 671 |
| Arkansas | 677 |
| Arizona | 698 |
| California | 709 |
| Colorado | 714 |
| Connecticut | 710 |
| District of Columbia | 699 |
| Delaware | 696 |
| Florida | 689 |
| Georgia | 674 |
| Guam | 681 |
| Hawaii | 716 |
| Iowa | 711 |
| Idaho | 706 |
| Illinois | 704 |
| Indiana | 693 |
| Kansas | 701 |
| Kentucky | 680 |
| Louisiana | 669 |
| Massachusetts | 720 |
| Maryland | 698 |
| Maine | 708 |
| Michigan | 705 |
| Minnesota | 724 |
| Missouri | 692 |
| Mississippi | 662 |
| Montana | 708 |
| North Carolina | 684 |
| North Dakota | 715 |
| Nebraska | 715 |
| New Hampshire | 718 |
| New Jersey | 710 |
| New Mexico | 683 |
| Nevada | 681 |
| New York | 712 |
| Ohio | 695 |
| Oklahoma | 675 |
| Oregon | 713 |
| Pennsylvania | 708 |
| Puerto Rico | 689 |
| Rhode Island | 709 |
| South Carolina | 675 |
| South Dakota | 717 |
| Tennessee | 682 |
| Texas | 674 |
| Utah | 708 |
| Virginia | 700 |
| Virgin Islands | 676 |
| Vermont | 721 |
| Washington | 715 |
| Wisconsin | 717 |
| West Virginia | 679 |
As you can see, there’s a significant variation in credit scores across different states. Factors like population density, income levels, and individual financial habits can all contribute to these differences.
Your Credit Score: A Personal Metric
Now, it’s time to turn the spotlight on your credit score. Where do you stand in this landscape? Knowing your individual credit score is crucial, as it gives you a clear picture of your financial health and the opportunities available to you.
Here are the key steps to take:
- Get your free credit report: You’re entitled to one free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) every year. You can access these reports at AnnualCreditReport.com.
- Check your credit score: Many banks and credit card companies offer free credit score monitoring services to their customers. You can also sign up for a credit monitoring service like Credit Karma or Mint.
- Understand your credit score: Once you know your credit score, take some time to understand what it means. A good credit score typically falls between 670 and 739, while a score of 800 or above is considered excellent.
Boosting Your Credit Score: A Guide to Financial Fitness
If your credit score isn’t where you’d like it to be, don’t despair. There are steps you can take to improve it:
- Pay your bills on time: This is the single most important factor in your credit score. Make sure you always pay your bills by their due dates.
- Keep your credit utilization low: Aim to use no more than 30% of your available credit. This shows lenders that you’re managing your credit responsibly.
- Check your credit report for errors: Mistakes happen, and sometimes your credit report may contain inaccurate information. Review your report carefully and dispute any errors you find.
- Become an authorized user on a responsible credit card: This can help you build credit history without having to open a new account yourself.
- Consider a secured credit card: Secured cards require a security deposit, but they can be a good option for people with limited credit history or bad credit.
Improving your credit score takes time and effort, but the rewards are worth it. A higher credit score can save you money on interest rates, help you qualify for better loans and mortgages, and even increase your chances of getting approved for jobs.
The Bottom Line: Your Credit Score Matters
In today’s world, your credit score is a powerful tool that can open doors to a wide range of financial opportunities. By understanding your credit score, taking steps to improve it, and using it responsibly, you can unlock a brighter financial future for yourself.
Delinquency Rates Return to Normal Levels, but Trend Is Still Upward
Because more people than usual were keeping up with credit card and other debt obligations due to government relief programs and the slowdown in the economy, delinquency rates were unusually low during the pandemic.
Since the economy has somewhat stabilized, negative marks on credit reports have also decreased, which can lower FICO® Scores. As of Q3 2023, 2. 45% of credit card accounts were past due by 30 days or more, as per Experian data, an increase from 20% in 07% in Q3 2022.
| Percent of Mortgage and Credit Card Accounts Considered Delinquent | |||||
|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|
Credit Card |
2.04% | 1.24% | 1.23% | 2.07% | 2.45% |
|
Mortgage |
2.48% | 1.18% | 1.01% | 1.46% | 1.88% |
Source: Experian data from Q3 of each year
Among other delinquency data, mortgages remain a bright spot. Since the majority of homeowners who have mortgages finance them at rates that are considerably lower than the 7% or higher rates that are typical for a 20-30-year fixed-rate mortgage in 2020–2023, more homeowners are making their payments on time than they were prior to the pandemic. Only 1. 88% of mortgage borrowers are behind on their payments in Q3 2023, versus 2. 48% in Q3 2019.
Where Consumers Stand Heading Into 2024
Although there is no such thing as an average customer, Experian and other credit bureaus gather a lot of quantifiable information about U S. consumers to compile averages. Trends, if any, can confirm other observations about the economy.
The average balances for the majority of debt types increased in 2023 compared to 2022, but the rate of increase is currently much lower than it was from 2021 to 2022. In general, as anticipated, the decline in inflation throughout 2023 led to a reduction in the total amount of debt that consumers are taking on. In the coming months, Experian will provide more details regarding the specific factors causing the increases in each category of loan.
| Average Consumer FICO® Scores, Balances and Credit Utilization Rates | |||
|---|---|---|---|
| 2022 | 2023 | Change | |
| FICO® Score | 714 | 715 | +1 point |
| Credit card balance | $5,910 | $6,501 | +10% |
| Open credit card tradelines | 3.9 | 3.9 | No change |
| Credit utilization | 28% | 30% | +2 percentage points |
| Auto loan balance | $22,612 | $23,792 | +5.2% |
| Student loan balance | $39,032 | $38,787 | -0.6% |
| Non-mortgage balance | $22,622 | $23,964 | +5.9% |
| Mortgage balance | $236,443 | $244,498 | +3.4 % |
| Total debt balance | $101,915 | $104,215 | +2.3% |
Source: Experian data as of Q3 of each year
In the meantime, average FICO® Scores are still in good shape and went up one point in 2023 from 714 to 715, putting them at the upper end of the good credit score range. A decade ago, the average FICO® Score was on the lower end of the good range.
What your credit score actually means
FAQ
How common is a 700 credit score?
|
FICO® Score range
|
Percent within range
|
|
600-649
|
9%
|
|
650-699
|
12%
|
|
700-749
|
17%
|
|
750-799
|
24%
|
How common is a 900 credit score?
How rare is a 800 credit score?
What is considered a decent credit score?
What is the average credit score in the US?
The average credit score in the U.S. was 715 in 2023, increasing by one point from its 714 average in the third quarter (Q3) of 2022. Why Are Average Scores Significantly Higher Than 10 Years Ago?
What is the average FICO credit score?
There are a number of ways to dive into the data. We’ll go through average credit scores by year, age group and state. The average FICO score of 714 remained unchanged from 2021 to 2022. These are the annual average U.S. FICO credit scores, using data from Experian.
Does the average American have a good credit score?
That means the average American has a good credit score. Below, you can learn more about the average credit scores by year, state, age and more. Reviewing these credit score statistics will give you a better sense of how good your credit score is relative to those of your peers.
What is a good credit score?
Following NerdWallet’s general guidelines, a good credit score is within the 690 to 719 range on the standard 300-850 scale, regardless of age. Credit scoring companies have their own measures. FICO’s good range is 670-739 and VantageScore’s, which it labels “prime,” is 661-780. (Find the complete list of FICO and VantageScore categories below.)