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 range | Rating |
| 750 and above | Excellent |
| 700 to 749 | Good |
| 650 to 699 | Fair |
| 600 to 649 | Poor |
| Below 600 | Bad |
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.
| State | Average credit score |
| Alaska | 668 |
| Wyoming | 678 |
| Utah | 683 |
| California | 680 |
| Montana | 689 |
| New Jersey | 686 |
| Colorado | 688 |
| New York | 688 |
| Oregano | 688 |
| Idaho | 681 |
| North Dakota | 697 |
| Florida | 668 |
| Hawaii | 693 |
| Washington DC | 670 |
| Washington | 693 |
| Oklahoma | 656 |
| New Mexico | 659 |
| Maryland | 672 |
| Nevada | 655 |
| Virginia | 680 |
| Texas | 656 |
| South Dakota | 700 |
| Connecticut | 690 |
| Illinois | 683 |
| Louisiana | 650 |
| North Carolina | 686 |
| Kentucky | 663 |
| Delaware | 672 |
| Alabama | 654 |
| Arizona | 669 |
| Georgia | 654 |
| West Virginia | 658 |
| Kansas | 680 |
| Indiana | 667 |
| New Hampshire | 701 |
| Minnesota | 709 |
| Arkansas | 657 |
| Iowa | 695 |
| Mississippi | 647 |
| Vermont | 702 |
| Missouri | 675 |
| Wisconsin | 696 |
| Massachusetts | 699 |
| Tennessee | 662 |
| Nebraska | 695 |
| Rhode Island | 687 |
| Michigan | 677 |
| Pennsylvania | 687 |
| Maine | 689 |
| South Carolina | 657 |
| Ohio | 678 |
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 |
The history of the average credit score in America
Below is a table demonstrating the credit score trends between the year 2005 and 2015.
| year | Average credit score |
| 2005 | 688 |
| 2006 | 690 |
| 2007 | 690 |
| 2008 | 690 |
| 2009 | 687 |
| 2010 | 687 |
| 2011 | 690 |
| 2012 | 690 |
| 2013 | 691 |
| 2014 | 693 |
| 2015 | 695 |
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.
