According to FICO and Experian’s latest data, America’s average credit score hits 711 – the highest value ever! This is 5 points higher than the average US credits score compared to a year ago. The rise shouldn’t surprise us. Since 2009, there has been constant growth.

ElitePersonalFinance analyzed the American average credit score in 2021 in many niche categories. We dig into details and found many interesting insights.

But Why Should You Trust ElitePersonalFinance’s Studies?

First of all, we guarantee that our studies are correct and always up to date!

ElitePersonalFinance is a team of highly experienced financial experts. We work hard, but our motivation and passion for providing our readers with the best in the financial world make our work fun!

To ensure that all of our studies are 100% correct, ElitePersonalFinance uses only top trusted sources. Most of them are government-operated sites. We carefully extract all data and analyze it in detail. Each study is verified by at least 5 financial experts from our team. Under each of our studies, you can find all links to our main sources for additional confidence. So you can visit and verify the data again from them.

To conduct the “Average Credit Score in America 2021” study, we used the latest data from FICO, Experian, and a few more trusted sources.

Average Credit Score in America 2021: Charts, Graph, Analysis

Average Credit Score in America 2021

The average U.S. FICO Score now sits at 711. This is 5 points higher than the average of last year. We will explain why this happens below.

But for now, let’s analyze the graph below. As you can see, there is constant growth since 2009. In 2009 the average FICO score was 686. From then, it is on the grow! There is only one little exception from this – 2011 and 2012. In both years, we have it averaging at 689.

Since 2017, when the average FICO score was 701, we have it averaging over 700. From then, we can conclude that it is the scope of a “good” FICO score.

Now about 21% of Americans have a good credit score.

ElitePersonalFinance analysis of FDIC data.

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Average FICO Score by State

The data shows that across the country, consumers in all 50 states and Washington, D.C., saw their average FICO Score increase since 2019.

Minnesota remained the state with the highest average FICO score of 739 in 2020. In 2019, the state made the chart again. Then it averaged at 733, which means an increase of 6 points.

Mississippi is the state with the lowest average FICO score of 675. In 2019, the state again was at the bottom with 667. This year we see a rise of 8 points.

The states with the highest FICO Score: Minnesota (739), Wisconsin (732), Vermont (731),  South Dakota (731), Washington (730), North Dakota (730).

The states with the lowest FICO Score: Mississippi (675), Louisiana (684), Alabama (686), Texas (688), Georgia (689), South Carolina (689).

The lowest credit scores in America can be found in the south.

States with the highest raise: Arizona (10 points), District of Columbia (10 points), Delaware (9 points), Idaho (9 points), Nevada (9 points), North Carolina (9 points), Oregon (9 points).

States with the lowest raise: North Dakota (3 points), Hawaii (4 points), South Dakota (4 points), Nebraska (5 points), New Hampshire (5 points), Vermont (5 points).

Provided by Elite Personal Finance

Average FICO Score by Age

It’s more than obvious that your credit score is significant in your life. And unfortunately, the data proves that people learn this too late. As a result, older people have the highest FICO score.

The data shows a strong correlation between peoples’ age and their average credit score. And when considering the inputs we outlined at the start, this result is somewhat expected.

The Silent Generation has an average FICO score of 758, 47 points higher than the national average.

Generation Z has the lowest average FICO score of 674, 37 points below the national average.

Why?

Whether because older people are more credit smart and experienced at all, whether because they have more time to think and work on their credit score, or whether because they have lost a lot of money in their life because of their low credit score in the past, this makes them the group with the highest average credit score.

Also, most young people have a limited borrowing capacity as well as limited credit history. Considering FICO models are data-driven – a lack of credit usage works against those in the lowest age group.

Conversely, borrowers over 30 usually have established careers and predictable earnings but carry significant mortgage debt. The longer duration of credit usage combined with an established repayment history signifies higher creditworthiness in analysts’ eyes.

The good news: Each age group saw its average FICO Score improve since this time last year.

Average Credit Score by Income

First of all, let’s explain the types of income in our table:

• Low income: Up to 50% of the area’s median income.
• Moderate income: 50% – 79% of the area median income.
• Medium income: 80% – 120% of the area median income.
• High income: More than 120% of the area median income.

There is a positive correlation between peoples’ income and their average credit score. People with lower income have a lower credit score. Higher average earnings lead to increased borrowing capacity, resulting in a higher average credit score.

One reason for this correlation is that people with low income have difficulties making their monthly payments on time. This leads to reports to credit bureaus.

Another reason is that people with lower income have access to less credit. This means that their credit utilization would be higher with smaller debt. This actually lowers their credit scores, which leads to lowering their credit availability.

Here is the median balance available on credit cards by income:

• Low income: $1,602
• Moderate income: $3,686
• Medium income: $8,001
• High income: $15,123

Average Credit Score by Race

According to a Federal Reserve report, Asians have the highest average credit score of 745, while Blacks have the lowest average credit score of 677.

Black people complain of discrimination by big banks. Whether this is true or not, we leave it to you. We will only mention a few publications discussing this topic:

“Decades of discrimination by the federal government and America’s financial institutions has induced an almost trauma-like response in many people of color, particularly African Americans, making them less likely to seek credit.” by CNBC.

“Missing Credit: How the U.S. Credit System Restricts Access to Consumers of Color”, by House.gov.

“From Inherent Racial Bias to Incorrect Data – The Problems With Current Credit Scoring Models,” Natalie Campisi, Forbes.

For advanced researchers, we wanted to leave few more links:

“Average credit card debt in America 2021” – Section: “Average US Credit Card Debt by Race,” by EPF.

“Population and demographics information by states.” by Suburbanstats.

Average Credit Score by Gender

The table below shows that men have a higher average credit score than women. While many factors can be considered, the main difference is employment earnings.

Men earn more money than women.

The latest Federal Reserve study compares single males’ and females’ average credit scores within the 21-40 age bracket. The study compiles 10-years of Mintel and TransUnion data to generate its average Vantage Score.

As a part of their findings, researchers concluded that single women tend to have higher debt usage, longer credit histories, higher debt outstanding, increased use of credit revolvers, and higher installment loan balances.

The study also concluded that single women are more likely to have payment delinquencies in their credit history.

Conversely, males tend to exhibit higher rates of bankruptcy.

Men have an average credit score of 781.

Women have an average credit score of 774.

Historical Average Vantage Score

The average Vantage Score in America is 688.

Like the average FICO Score, the average Vantage Score shows an upward trend of a parallel – though somewhat delayed – participation.

Sourced from the latest Experian State of Credit Study, the data depicts the average Vantage Score starting in 2014, before beginning a slow climb back to the near-highs of 2013.

Is There an Actual Difference Between FICO Score and Credit Score?

Both FICO and credit score use a different but very close algorithm. That is why these values vary slightly but are very close. So is there an actual difference between FICO and credit score?

In a material sense – no.

While FICO consolidates anonymous data from credit bureaus, a Vantage Score is generated from a combination of consumer credit filings.

As well, each of their final scores is calculated using almost the same factors.

• Payment history.
• Length of credit history.
• Types of credit.
• Credit usage.
• Recent inquiries.

But which one will my lender use?

Most lenders use FICO scores. However, some use other types of credit scores, and others use their own risk models.

In the end, the correct answer is – ask them.

Here are the most popular scoring models.

But what is much more important is not this small difference.

What is important is that the average credit score continues to grow!

How Your Credit Score Impacts Your Loan Interest Rates

Now let’s talk about what your credit score actually means for you. Let’s start with how your credit score impacts your personal loan rates.

When applying for a loan, the first lender step is to check your credit score.

While many other variables are considered, your credit score plays an important role in determining the loan terms, and most importantly, the cost of borrowing.

The below table shows the average interested rate people should expect based on their credit score.

At the end of the scale, borrowers with too low credit scores often face diminishing prospects when obtaining a personal loan. As a result, they get payday loans, which average at 400%, and auto title loans, which average 300%.

Tips from us! Avoid payday loans and auto title loans. On our site, you will find many alternative options, even if you are with bad credit.

In addition to these high values of APR that we show, consumer studies also show:

• Roughly 20% of people who get auto title loans end up losing their car.
• The average American debt cycle is 200 days.

How Your Credit Score Affects Your Credit Card Interest Rates

Cut from the same cloth, a stable and reliable credit score will also benefit you when it comes to credit card applications. As an unsecured form of borrowing, lenders are wary of extending large credit limits to high-risk borrowers.

As such, maintaining a respectable score will not only lower your annual interest rate – but also allow you to qualify for options with higher minimum balances, lower annual fees, and greater rewards as well.

How Credit Score Factors Changed Over The Last 10 Years?

Do you know this graph?

Probably yes. You’ve seen graphs like this one many times.

But let’s now dig into what is behind these details and give you more advanced information on how these percentages change over the last 10 years. Here it is.

Why Does The Average Credit Score Continue Growing?

• People are becoming more credit smart

More Americans started to understand that their FICO scores significantly impact their finances. As a result, they started to pay more attention to it and work on improving it.

• Missed payments reported in the credit file are down

Data shows that as of July 2020, 7.3% of the population had a 90+ day past due missed payment in the past 6 months. Credit reports to all of those people have been affected.

Payment history makes 35% of your FICO score.

• Consumer debts have decreased

How We Conducted This Study

ElitePersonalFinance always has up-to-date studies.

Updated to reflect the latest information in 2021, our study combed through Experian’s official credit scoring data, the Fair Isaac Corporation (FICO), and the US Federal Reserve. We also included statistics from the Consumer Financial Protection Bureau (CFPB).

When carefully analyzed these numbers and grouped them into different categories.

Sources

The Average FICO Score Study by FICO.com

The Average Credit Score Study 2021 by Experian

Experian: State of Credit

Federal Reserve Study of Credit Scores and Gender

Federal Reserve Study of Credit Scores and Income

Federal Reserve Bank of New York