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The average FICO credit score in the U.S. is 716, though average scores depend on your age, where you live, your income, and more.
The more responsible you are with paying bills on time and handling credit, typically higher your score. Your credit score offers a snapshot of your financial health. It provides insight into how lenders perceive you when applying for loans or credit cards.
A good credit score helps you qualify for certain loans or get lower interest rates, as lenders look at your credit history to determine if you can manage debt responsibly. By knowing your credit score, you can take steps to improve it if needed.
Look at the average credit scores by age group to see how you compare.
Average credit score by age
Age can impact your credit score, though it’s not a direct factor.
Younger people tend to have lower credit scores than older generations. Older individuals may have a more extended credit history and diverse credit mix, leading to higher scores.
Building a good credit score takes time, says Brent Reinhard, a director at JPMorgan Chase overseeing some of the brand’s most popular credit cards. Those ages 40 and older have had more time to establish credit and “tend to have higher credit scores on average.”
“As we age and have more opportunities to add diversity to our credit history, the more chances one has to build a stronger score,” he says.
Here’s a look at the average credit score by age based on Experian data.
| Generation | Average credit score |
|---|---|
| Silent generation (77+) | 760 |
| Baby boomers (58-76) | 742 |
| Generation X (42-57) | 706 |
| Millennials (26-41) | 687 |
| Generation Z (18-25) | 679 |
Credit scores range from 300 to 850. A FICO credit score between 670 and 739 is considered a good credit score, while any score between 740 and 799 is considered very good. Scores above 800 are considered excellent.
A VantageScore between 661 and 780 is considered a good score, and scores between 781 and 850 are considered excellent.
What goes into your credit score
Several factors affect your credit score. How much they impact your score depends on the credit scoring model, such as FICO or VantageScore. Here are the main factors influencing your credit score:
- Payment history: Your payment history significantly affects your credit score. Paying off your credit card balance completely each month shows responsible behavior and can boost your credit score.
- Credit utilization: Credit utilization is the amount of credit you use compared to your total available credit. Keeping your credit utilization low, ideally below 30%, can positively impact your score.
- Length of credit history: The older your credit accounts, the better, as it offers a track record for lenders to assess your creditworthiness.
- Credit mix: A mix of different credit accounts, such as credit cards and loans, can positively impact your credit score. It shows your ability to handle various types of credit responsibly.
- New credit applications: When you apply for new credit, like opening a credit card or taking out a loan, it can temporarily lower your credit score. Lenders see multiple credit inquiries as a sign of potential risk.
How to check your credit score
Many platforms allow you to check your credit score for free. Some card issuers offer credit score reporting, including American Express MyCredit Guide and Chase’s Credit Journey.
You can also access your credit report, which tracks your credit accounts, balances, and payment history. You can check your credit report with all three credit bureaus — Experian, Equifax, and TransUnion — for free using AnnualCreditReport.com.
When accessing your report, review it for accuracy. You can dispute any discrepancies with the credit bureau to have them corrected.
If you want to regularly track your credit score, consider credit monitoring. Many companies, including some credit card issuers, provide these services for a fee.
Ways to improve your credit score
No matter where your credit score falls, you can take steps to improve it. This is important when you’re young and starting to build credit, but it also holds for those later in life.
Tips to help you build your credit score include:
- Pay your bills on time. Late or missed payments can have a significant negative impact on your score. Set up reminders or automatic payments so you don’t forget.
- Regularly monitor your credit. Review your credit report for any errors or inaccuracies. Disputing those errors and removing them from your report can boost your score.
- Keep your credit utilization low. Lowering your credit card balances can help improve your credit utilization ratio.
- Pay off debt. Paying off outstanding balances shows responsible financial behavior and can improve your score. Reinhard says you should focus on debts that have gone to collections first since “those will drag your credit score the most.”
- Avoid new credit applications. Opening a bunch of new credit accounts within a short period of time can cause your score to drop. Only apply for credit when necessary, and be cautious about opening multiple new accounts.
- Be patient. An 850 credit score doesn’t happen overnight. Building good credit takes time, so stay consistent with your responsible financial habits.
Using a credit card to help you build credit
Certain credit cards are specifically designed to help individuals build credit. Most are secured credit cards, which require a cash deposit as collateral.
Secured cards are easier to qualify for and report credit balances and payments to the credit bureaus to help consumers build credit. Some secured cards let users earn rewards on spending.
There are also unsecured credit cards for building credit, but they aren’t created equal. Look for a card with a reasonable interest rate and low or no annual fees.
If you’re a college student, you can get a student credit card, which often comes with lower credit limits and higher approval odds for those who qualify.
The bottom line
Focusing on your credit score as soon as possible can help you establish a solid credit history early. A good credit score gives you access to better financial opportunities — and it’s possible to reach the score you want, no matter when you begin the process of building your credit.
Understanding the importance of managing credit and developing smart credit card habits will benefit you in the long run.
Opinions expressed are author’s alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.
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