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

EPF Last Update: February 1, 2019

Let’s start with the big news! Finally, the average credit score is over 700! Yes! The average credit score in America, 2019 is 704, according to the official issuer – MyFICO!

Elite Personal Finance conducted a study on the average credit score in America in 2019. We analyzed the data from many official sources in depth, which helped us go deeper and provide more advanced statistics on the average credit score in US 2019.

Note that some of the data is related to the FICO score, others related to credit score, which are different models with very close values. Though different scoring models exist, which cause this figure to fluctuate by a few points, most fall between 660 to 720. This coincides with what the Consumer Financial Protection Bureau defines as ‘prime’ – an average score.

Elite Personal Finance has the latest statistics on credit score in the U.S.

The average credit score study 2019 is based on the latest data from all official source of 2018 or their latest updates.

Here are our findings!

Average Credit Score in America in 2019, Statistics & Key Findings

The average credit score in America in 2019 is 704. Finally, we can categorize it in the good credit score range. Latest few years the average credit score fall was fair and very close to good credit score range.

The average credit score in America grows every year. There is an obvious trend – the Americans are becoming more credit smart which increases the number.

For the last 10 years, the average credit score increased with 10 to 20 points, based on different scoring models.

With the increase in the years, people become more credit smart. Average credit score rose with the increase of people’s ages. Young people – 659, old people – 747.

There is an obvious correlation between average income and average credit score. With the increase of the income, the credit score rises.

The numbers of delinquencies and charge-offs are relatively stable. Fortunately, there is no trend that these numbers increases. In fact, it is much less than a few years back, it stands at 3%, which is much more better than before at over 7%. It seems American credit card holders become smart in using credit cards and being careful on their credit report.

And finally very interesting … Men are more credit smart than women with about 10 points.

 

2019 Update! Do you know that in 2019 there will be a new scoring model, UltraFICO? Rather than relying primarily on a consumer’s credit payment history, the Fair Issac Corp. (issuer of FICO scores) will instead factor in “how consumers manage the cash in their checking, savings and money market accounts”.

It’s quite simple, put $400 in savings for 3 months and you will see a boot of about 20 points!

What is Credit Score?

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 is a table that gives you a rough idea of how a credit score is interpreted. However based on different scoring models you will see different values, but they will be close.

Credit Score Range Credit Rating
800 + Excellent
740 to 799 Very Good
670 to 739 Good
580 to 669 Fair
300 to 579 Bad

 

Average Vantage Score 2019

Year Vantage Score
2017 675
2016 673
2015 669
2014 666
2013 681

 

Average FICO Score 2019

Year Average FICO Score
2008 690
2009 687
2010 687
2011 688
2012 690
2013 691
2014 692
2015 695
2016 699
2017 700
2018 704


Average Credit Score by State

Based on official study by Experian, we present you the average credit score in America by states. Note this is data about credit score, not FICO score. At this time there is no official data about FICO score by states. When we find it, we will be the first who will list it.

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State Average Credit Score
1. Minnesota 709
2. Vermont 702
3. New Hampshire 701
4. South Dakota 700
5. Massachusetts 699
6. North Dakota 697
7. Wisconsin 696
8. Iowa 695
8. Nebraska 695
10. Hawaii 693
10. Washington 693
12. Connecticut 690
13. Montana 689
13. Maine 689
15. Colorado 688
15. Oregon 688
15. New York 688
18. Rhode Island 687
18. Pennsylvania 687
20. New Jersey 686
21. Utah 683
21. Illinois 683
23. Idaho 681
24. California 680
24. Virginia 680
24. Kansas 680
27. Wyoming 678
27. Ohio 678
29. Michigan 677
30. Missouri 675
31. Maryland 672
33. Delaware 670
33. District of Columbia 670
34. Arizona 669
35. Alaska 668
35. Florida 668
37. Indiana 667
38. North Carolina 686
39. Kentucky 663
40. Tennessee 662
41. New Mexico 659
42. West Virginia 658
43. Arkansas 657
43. South Carolina 657
45. Oklahoma 656
45. Texas 656
47. Nevada 655
48. Alabama 654
48. Georgia 654
50. Louisiana 650
51. Mississippi 647

 

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 years Average credit score
18-29 659
30-39 677
40-49 690
50-59 713
Above 60 747

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 status Income percentage range Credit score
Low-income earners Below 50% of the MFI 664
Moderate-income earners 50-79% of MFI 716
Middle-income earners 80-119% of MFI 753
High- income earners 120% of MFI 775

 

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 score Female average credit score
Below $35,000 622 615
35,000-54,999 646 634
55,000-74,999 651 639
75,000-99,999 666 652
100,000-149,999 683 671
Above 150,000 700 690

 

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.

Race Average credit score
Asians 745
Blacks 677
Hispanic 701
Whites 734
Others 732

 

Loan APR vs Credit Score

Finally what these numbers means for you? How people benefit for getting a loan if they work to have great credit score?

When you shop for a loan, lender check your credit score like one of the most important factors, but there are many other factors that lenders use to determine your profile, like: income, debt to income ratio, free cash flow, and many other. So, credit score can’t be recognized as the only factor that make your APR. Here is a very rough data on how the credit score affect your APR and chances to get a loan. Note, this data is based on our personal research! We work with many people, looking for a loan and partner with many big personal loans companies.

Credit Score Expected APR
Good and Excellent 5% – 10%
Fair 10% – 20%
Bad 20% – 35.99%

In addition, people with bad credit score not always can’t get approved for a loan. In some cases they even have to go and get a payday loans, which are predatory and comes with APR of 400%, or auto title loans, which comes with APR of 300% but people have to put their car like collateral.

Studies shows that:

  • The average debt cycle period for Americans is 200 days.
  • 20% of the people who get auto title loans lose their cars.

 

Credit Card APR vs Credit Score

Another benefits to have great credit score are credit card offers. We can talk a lot on that topic because the the credit card market is full with so many different products, but you have to know that high credit score gives you better offers.

People with bad credit score can’t easy apply for unsecured credit card. They typically get secured credit card, that they have to work a time till they convert them to unsecured and apply for better offers like annual rate and rewards.

People with better credit score apply easy for better offers, means, less annual fees, less APR and more rewards.

Elite Personal Finance

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