Average Credit Score in America 2021

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Last Update: February 14, 2021 Credit Cards Credit Report Loans Studies
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According to the latest data from FICO and Experian, America’s average credit score hits 711, which is the highest value ever. This is 5 points higher than the average US credits score, compared to a year ago. The below graph shows an obvious positive trend for the last years.

Approximately 21% of Americans have a FICO Score that fell in the “good” credit score range.

ElitePersonalFinance, using the latest data from FICO and Experian, provides the most accurate data. We analyzed the American average credit score in 2021 in many niche categories.

Our studies are always up to date!

Average Credit Score in America 2021: Statistics and Key Findings

The average FICO score in America is 711.

Compared to a year ago, the average FOCO score is 5 points higher than the average US credits score. Then it was 706.

Approximately 21% of Americans have a FICO Score that fell in the “good” credit score range.

By Age:

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

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

By State:

Minnesota has the highest average FICO score of 739.

Mississippi is the state with the lowest average FICO score of 675.

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

The states with the lowest FICO Score: Mississippi (675), Louisiana (685), Alabama (687), Texas (688), Georgia (689).

By Gender:

Men’s average credit score is 781.

Women’s average credit score is 774.

By Income:

The average credit score for people with low income is 664.

The average credit score for people with high income is 775.

By Race:

Asians have the highest average credit score of 745, while Blacks have the lowest average credit score of 677.

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. Below we will explain why this actually happens in detail.

Year: Average FICO Score:
2005 688
2006 690
2007 689
2008 689
2009 686
2010 687
2011 689
2012 689
2013 690
2014 694
2015 696
2016 699
2017 701
2018 705
2019 706
2020 711

ElitePersonalFinance analysis of FDIC data.

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, Minnesota was the only state that had an average value of over 730. Then the value averaged at 733.

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

Mississippi is the state with the lowest average FICO score of 675. In 2019, the state again got the lowest value, which then was 667.

The states with the lowest FICO Score: Mississippi (675), Louisiana (685), Alabama (687), Texas (688), Georgia (689).

State: 2019: 2020:
Alabama 680 687
Alaska 707 714
Arizona 696 706
Arkansas 683 690
California 708 717
Colorado 718 725
Connecticut 717 723
Delaware 701 710
District Of Columbia 703 713
Florida 694 702
Georgia 682 689
Hawaii 723 727
Idaho 711 721
Illinois 709 716
Indiana 699 708
Iowa 720 726
Kansas 711 718
Kentucky 692 699
Louisiana 677 685
Maine 715 722
Maryland 704 713
Massachusetts 723 729
Michigan 706 715
Minnesota 733 739
Mississippi 667 675
Missouri 701 707
Montana 720 727
Nebraska 723 728
Nevada 686 696
New Hampshire 724 730
New Jersey 714 721
New Mexico 686 694
New York 712 719
North Carolina 694 704
North Dakota 727 730
Ohio 705 712
Oklahoma 682 690
Oregon 718 727
Pennsylvania 713 720
Rhode Island 713 720
South Carolina 681 690
South Dakota 727 731
Tennessee 690 697
Texas 680 688
Utah 716 723
Vermont 726 732
Virginia 709 718
Washington 723 731
West Virginia 687 695
Wisconsin 725 732
Wyoming 712 719

Average FICO Score by Age

Generation: 2019: 2020:
Generation Z (18-23) 667 674
Millennials (24-39) 668 680
Generation X (40-55) 688 699
Baby boomers (56-74) 731 736
Silent generation (75+) 757 758

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

Like a few of the figures above, the data shows a strong correlation between age and 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, which is 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, make 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 the age of 30 usually have established careers, predictable earnings but carry a significant amount of mortgage debt. The longer duration of credit usage combined with an established repayment history signifies higher creditworthiness in analysts’ eyes.

The good news: Regardless of age group, every generation saw its average FICO Score improve since this time last year.

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 the 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’s average credit score is 781.

Women’s average credit score is 774.

Age: Male: Female:
21 – 30 768 762
31 – 40 793 785
Average 781 774

Average Credit Score by Income

While at first glance, the data shows a positive correlation between income and average credit score, a recent Federal Reserve study cautions not to make too much of the relationship.

After statistically regressing several Mintel/Comperemedia data sets using its proprietary inputs, researchers concluded that “credit score distributions of high- and low-income consumers are both widely dispersed, and that income is not a strong predictor of credit scores, or vice versa.”

Technically speaking, the results showed a correlation of 0.27 and an R-squared of roughly 0.08. To feel confident in the linear relationship between two variables, most statisticians want to see a correlation greater than 0.60.

The average credit score for people with low income is 664.

The average credit score for people with high income is 775.

Income Grouping: Percentage of Median Family Income (MFI): Average Credit Score:
Low Income < 50% 664
Moderate Income 50% – 79% 716
Middle Income 80% – 119% 753
High Income 120% 775

Higher average earnings lead to increased borrowing capacity, resulting in a higher average credit score.

Average Credit Score by Race

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

Race: Average Credit Score:
Asians 745
Blacks 677
Hispanic White 701
Non-Hispanic White 734
All Other 732
All Other 728

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 taken into consideration, 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.

Credit Score Range: Expected APR:
Good 5.99% – 10%
Fair 10% – 15%
Bad 15% – 35.99%

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 at 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.

Historical Average Vantage Score

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

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.

Year: Average Vantage Score:
2013 681
2014 666
2015 669
2016 673
2017 675
2018 680
2019 682
2020 688

Historical Average Vantage Score Graph

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? We can conclude that:

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.

Look at the table below. As you can see, the difference is low.

Year: Average FICO Score: Average Credit Score: Average Vantage Score:
2005 688
2006 690
2007 689
2008 689
2009 686 686
2010 687 687
2011 689 688
2012 689 693
2013 690 691 681
2014 694 693 666
2015 696 695 669
2016 699 699 673
2017 701 699 675
2018 705 701 680
2019 706 703 682
2020 711 711 688

Note! There are only average values. There are many different FICO and credit scoring models.

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!

Why The Average Credit Score Continue Growing?

  • People are becoming more credit smart

More Americans started to understand the huge impact that their FICO score has on their finances. And they started to pay more attention to 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 these people were affected.

Payment history makes 35% of your FICO score.

  • Consumer debts have decreased

In July 2020, the U.S. consumer credit card debt averaged at $6,004. This is down from the average credit card debt of $6,934 back in January 2020.

There are many reasons for that, including but not limited to: people started to save more money, avoid unnecessary expenses, etc. Also, many lenders put higher approval requirements, which prevented many people from being approved for loans. Many lenders shout down for a time.

Accounts owed makes 30% of your FICO score.

  • The FICO Score doesn’t negatively consider forbearance/deferment agreements

Accounts reported as “current” with credit reporting codes related to forbearance or deferment or that the consumer has been ‘affected by a disaster,’ will not cause the FICO Score to drop. In fact, placing a consumer in forbearance or deferment, along with reporting the account status as “current” instead of as “delinquent,” will permanently ensure that the late payments won’t impact their FICO Score.

This should be great news to the millions of consumers holding accounts that have been reported in some form of payment accommodation.

How We Conducted This Study

ElitePersonalFinance has always up to date studies.

Updated to reflect the latest information available 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

MEET THE AUTHOR

ElitePersonalFinance

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