Average Credit Score in America 2019 - Elite Personal Finance
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Average Credit Score in America 2019

EPF December 6, 2018

A credit score is a rating used in the classification of a borrower where the higher the credit score, the better the borrowers’ condition. A credit score comprises of the payment history (35%), amount of debt and credit available (30 %) length of the consumers’ credit history (15%), new lines of credit (10 %,) and the credit types which accounts for 10%. In addition to that, individuals with excellent credit score have their loans easily approved since they are financially responsible. On the contrary, the lenders disburse loans to consumers with bad credit scores at an exchange of high interests which insures against the defaulting risks. Below are the credit score and rating categories per the Fico scores;

 

Credit score rangeRating
750 and aboveExcellent
700 to 749Good
650 to 699Fair
600 to 649Poor
Below 600Bad

The American’s average credit score is currently 704 falling under the “fair” rating range. Having a “fair” rating implies that the consumer qualifies for more credits at a considerate, down payment. However, if your credit score is limiting you from acquiring a loan, 10% of your loan price can be put down at the closing time.

The average credit score by state

Mississippi has the lowest average credit score at 649 while Minnesota tops with an average credit score of 709.

StateAverage credit score
Alaska 668
Wyoming678
Utah683
California680
Montana689
New Jersey686
Colorado688
New York688
Oregano688
Idaho681
North Dakota697
Florida668
Hawaii693
Washington DC670
Washington693
Oklahoma656
New Mexico659
Maryland672
Nevada655
Virginia680
Texas656
South Dakota700
Connecticut690
Illinois683
Louisiana650
North Carolina686
Kentucky663
Delaware672
Alabama654
Arizona669
Georgia654
West Virginia658
Kansas680
Indiana667
New Hampshire701
Minnesota709
Arkansas657
Iowa695
Mississippi647
Vermont702
Missouri675
Wisconsin696
Massachusetts699
Tennessee662
Nebraska695
Rhode Island687
Michigan677
Pennsylvania687
Maine689
South Carolina657
Ohio678

 

Average credit score by age

The truth is; as the consumer ages the more their credit score climbs. This might happen due to the reason that people become financially responsible while ageing and that’s why the elderly (above 60 years) have excellent scores. Secondly, one gains some financial stability as they grow and that’s why the youths (18-26 years) have a poor rating as they working towards achieving their financial confidence. Finally, older consumers have more time to build their credit scores than the youngsters.

 

Age bracket in yearsAverage credit score
18-29659
30-39677
40-49690
50-59713
Above 60747

Average credit score by income

In several occasions, the higher income earners hold a higher credit score since they have higher borrowing capabilities which improve their creditworthiness. Secondly, such individuals can spend or invest without relying on loans. The factor enables them to maintain low credit utilization which covers around 30% of your score.

On the other hand, the low-income earners can also have an excellent credit score because; the individuals have low credit limits since they spend all their income increasing their credit utilization. Also, the creditworthiness doesn’t depend on your wealth but the ability to manage finances. Below is a table demonstrating the relationship between income and the average score of a median family.

 

Income statusIncome percentage rangeCredit score
Low-income earnersBelow 50% of the MFI664
Moderate-income earners50-79% of MFI716
Middle-income earners80-119% of MFI753
High- income earners120% of MFI775

 

Average credit score by gender

The majority of American men earn more than their female counterparts. Earning more implies that the consumer has higher opportunities for debt approval. Remember, managing your loans and bills improves one credit score. Below is a table illustrating the relationship between gender and the credit score in America (as per the 2016 findings)where men’s average credit score leads the women’s with more than 10 points.

Income range in dollars ($)Male average credit scoreFemale average credit score
Below $35,000622615
35,000-54,999646634
55,000-74,999651639
75,000-99,999666652
100,000-149,999683671
Above 150,000700690

 

Average credit score by race

According to the report published by the US Federal Reserve Bank, on the credit status of the residents, Asians had the highest average credit score of 745 while the Blacks held the lowest score of 677.

RaceAverage credit score
Asians745
Blacks677
Hispanic701
Whites734
Others732

 

The history of the average credit score in America

Below is a table demonstrating the credit score trends between the year 2005 and 2015.

yearAverage credit score
2005688
2006690
2007690
2008690
2009687
2010687
2011690
2012690
2013691
2014693
2015695

 

From the table, it’s evident that the American’s average credit score has been improving since the year 2005, although in the years 2009 and 2010, was negatively affected due to some consumers defaulting their loan settlements or bankruptcy. The credit score gets improved by settling the bills promptly, borrowing the loans regularly and re-paying accordingly.

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