What Is the Average Credit Score in America?

Your credit score affects many areas of your life, including getting approved for a mortgage, qualifying for a car loan, or even renting an apartment. Lenders rely on it to assess how likely you are to repay borrowed funds and determine the interest rates you’ll pay.

With so much tied to this three-digit number, it’s natural to wonder how your score compares to others. What is the average credit score in America, and how can you use that knowledge to open more financial doors? Let’s explore the answers.

What Is the Average Credit Score?

The average FICO credit score in the United States is 717, according to the latest data. This places most Americans in the “good” credit category, which typically ranges from 670 to 739. While this score reflects stability, it also highlights that there’s room for improvement to access even better financial opportunities.

With a credit score of 717, you’re in a strong position to qualify for loans and credit cards with favorable terms. However, moving into the “very good” or “excellent” range can open the door to even lower interest rates and more competitive offers.

How Are Credit Scores Determined?

Your credit score is a three-digit number that reflects how well you manage credit. The most widely used scoring model, FICO, calculates your score based on the information in your credit report. Here’s a quick breakdown of the key factors that influence your FICO score:

• Payment History (35%): Whether you pay your bills on time. Even one missed payment can significantly lower your score.
• Credit Utilization (30%): The percentage of your available credit you’re currently using. Lower utilization is better.
• Credit History Length (15%): How long your credit accounts have been active. A longer history usually leads to a higher score.
• Credit Mix (10%): The variety of credit accounts you have, such as credit cards, mortgages, and car loans.
• New Credit (10%): The number of recent credit inquiries and new accounts. Applying for too much credit at once can hurt your score.

FICO scores range from 300 to 850, with 850 being the highest score possible. A higher score indicates you’re more likely to repay borrowed money, making you a less risky borrower according to lenders. Your credit score can impact everything from loan approvals to the interest rates you’re offered, so understanding how it’s calculated can help you make better financial decisions.

See also: What Is a Fair Credit Score?

Average Credit Scores by Region

Credit scores across the United States vary based on a range of factors, from cost of living and income levels to financial habits and access to education. Examining these trends on a regional level provides insight into how geography influences financial health.

Regions with the Highest Credit Scores

States in the Midwest and New England consistently rank at the top for average credit scores. Here’s a closer look:

• Minnesota leads the nation with an average credit score of 742. Residents benefit from low consumer debt levels, high income averages, and a strong culture of saving.
• Vermont follows with an average credit score of 736, driven by its relatively high median household income and a low rate of credit delinquencies.
• Wisconsin and New Hampshire also rank high, both averaging scores of 735-734, with strong financial literacy programs and low credit card balances.

In these regions, people tend to carry lower levels of credit card debt, prioritize paying bills on time, and maintain conservative borrowing habits, all of which contribute to higher credit scores.

Regions with the Lowest Credit Scores

States in the South tend to have lower average credit scores. Here are some key examples:

• Mississippi has the nation’s lowest average credit score at 680. Higher rates of poverty and unemployment in the state contribute to higher levels of debt and delinquencies.
• Louisiana and Alabama average scores around 689-691. Residents in these states often face financial hardships, including limited access to credit education and higher living costs relative to income.
• Georgia and Arkansas both hover around 694, reflecting a combination of high credit card debt balances and lower financial literacy levels.

In many Southern states, the combination of systemic poverty and high-interest predatory lending practices has contributed to lower scores over time.

Why Regional Differences Exist

Several factors drive these credit score disparities:

1. Economic Conditions:
   • States with stronger economies, higher employment rates, and higher median incomes—such as those in the Midwest—tend to see better credit outcomes.
   • In contrast, regions with higher unemployment or lower wages struggle with debt repayment, which lowers average scores.
2. Cost of Living:
   • In areas with a lower cost of living, residents have more disposable income to manage debt and avoid overextending their credit.
   • Conversely, states with higher costs, like those in the South, often see higher rates of missed payments and delinquencies.
3. Financial Literacy:
   • States that emphasize financial education see improved credit outcomes. Minnesota, for example, incorporates personal finance into its school curriculum, while states with lower average scores often lack robust financial literacy programs.
4. Cultural and Social Factors:
   • Attitudes toward credit and debt vary by region. In higher-scoring states, people tend to view credit as a long-term tool and use it sparingly. In lower-scoring states, reliance on credit for everyday expenses can lead to higher utilization rates and more delinquencies.
5. Access to Credit:
   • Regions with higher poverty levels often have limited access to low-interest credit products, leaving residents to rely on high-interest payday loans or subprime credit cards, which can exacerbate financial challenges.

What This Means for You

While geographic trends can highlight regional differences, they don’t define your personal financial trajectory. Regardless of where you live, focusing on paying bills on time, keeping credit utilization low, and maintaining a diverse credit mix can help you improve your score. Even in states with lower averages, individuals can achieve excellent credit with the right strategies.

By looking at how location influences credit scores, you can better identify challenges in your region and focus on improving your financial health.

Average Credit Scores by Age

Credit scores generally improve with age as individuals gain more experience managing their finances. Here’s how the average FICO scores compare across age groups:

• Ages 18–26: The average credit score is 680. Younger adults often have limited credit histories, which can make it harder to build higher scores. Many rely on student loans or credit cards to start building credit, but missed payments or high credit utilization can hold them back.
• Ages 27–42: The average credit score is 690. This group often experiences financial milestones like purchasing homes or cars, which can lead to fluctuating scores. While debt levels rise during these years, responsible credit management helps improve scores over time.
• Ages 43–58: The average credit score is 709. With more established careers and incomes, this group often sees greater financial stability. However, significant debts like mortgages or education costs for children can still impact their credit.
• Ages 59–77: The average credit score is 745. Many in this age group benefit from paying off large debts like mortgages. Lower credit utilization and decades of positive payment history contribute to higher scores.
• Ages 78 and older: The average credit score is 760. Seniors typically achieve the highest scores due to long credit histories and fewer active debts. However, they may use credit less frequently, and account closures can occasionally cause slight dips.

Unique Challenges by Age Group

• Young Adults (18–26): Limited access to credit and a lack of credit history can hinder score growth. Missteps like missed payments early on have a greater impact.
• Midlife Borrowers (43–58): Balancing multiple financial responsibilities, such as mortgages, loans, and healthcare expenses, can create challenges if not managed well.
• Seniors (59+): Maintaining active credit accounts becomes important, as infrequent credit usage or account closures can lead to slight dips in scores.

Takeaways for All Ages

No matter your age, building strong credit habits—like paying bills on time, keeping credit utilization low, and monitoring your credit report regularly—can set you up for long-term success.

Average Credit Score by Year

Tracking how average credit scores have changed over time can reveal trends in financial habits and credit management. Here’s how FICO® Scores in the U.S. have evolved over the past decade:

Year	Average FICO® Credit Score
2013	691
2014	693
2015	695
2016	699
2017	699
2018	701
2019	703
2020	710
2021	714
2022	714
2023	715
2024	717

These numbers show a steady rise in credit scores, reflecting better financial habits and credit management by many Americans. This upward trend highlights the impact of increased financial literacy and access to tools like credit monitoring and education.

While the national average provides a helpful benchmark, individual credit scores depend on various factors, including payment history, credit utilization, and the length of credit history. Staying proactive by paying bills on time, reducing debt, and regularly reviewing your credit report can help improve your score over time.

How Your Credit Score Impacts Loan Approvals

Your credit score plays a key role in determining whether you’re approved for loans, mortgages, and credit cards, as well as the terms you’ll receive. Here’s how it works:

• Loan Approvals: Lenders use your credit score to evaluate risk. Higher scores show you’re a reliable borrower, increasing your chances of approval. For example, a score of 700 or above is often needed for conventional loans, while FHA loans may accept scores as low as 580.
• Interest Rates: A higher credit score means lower interest rates. For instance, someone with a score of 760 may qualify for a mortgage interest rate 1-2% lower than someone with a score of 620. Over time, this could save tens of thousands of dollars in interest.
• Credit Limits: Credit card issuers often base limits on your credit score and income. A higher score can secure you a card with a higher limit, while lower scores might restrict your borrowing power.

A good credit score doesn’t just open doors—it also helps you save money by securing better terms. Taking steps to improve your score is one of the best ways to set yourself up for financial success.

Practical Tips for Improving Credit Scores

If you want to raise your credit score, these actionable steps can make a significant difference:

1. Pay Bills on Time: Payment history makes up 35% of your FICO score. Set up automatic payments or reminders to ensure you never miss a due date.
2. Reduce Credit Card Balances: Aim to keep your credit utilization ratio below 30%—ideally below 10%—to maximize your score. Paying down high balances can lead to a quick boost.
3. Avoid Opening Too Many Accounts: Each new credit inquiry can temporarily lower your score. Apply for credit only when necessary to minimize the impact.
4. Check Your Credit Report for Errors: Request your free credit report from each of the three major credit bureaus at least once a year. If you spot inaccuracies, dispute them immediately.
5. Keep Old Accounts Open: The length of your credit history affects 15% of your credit score. Closing old accounts could shorten your average account age and negatively impact your score.

Small, consistent changes in your credit habits can lead to significant improvements over time.

When to Seek Professional Help

Improving your credit score can sometimes feel overwhelming, especially if your report has multiple errors, or you’re dealing with complicated disputes. In these cases, working with a professional credit repair service can save you time and effort. Here are some scenarios where professional help might make sense:

• Persistent Errors on Your Credit Report: If inaccurate information is negatively affecting your score and disputes haven’t resolved the issue, credit repair professionals can help you navigate the process and achieve results faster.
• Limited Time to Improve Your Score: If you’re trying to improve your credit quickly—for example, to qualify for a loan—professionals can address negative marks and optimize your report efficiently.
• Overwhelmed by the Process: Dealing with credit bureaus and creditors can feel like a full-time job. Hiring professionals allows you to focus on your financial goals while they handle the details.

That said, you can also certainly do it yourself. Many credit disputes can be resolved independently by requesting your free credit report, identifying inaccuracies, and filing disputes directly with the credit bureaus. While this process takes time and patience, it’s a cost-effective option for those comfortable managing their own credit repair efforts.

Whether you choose to work with a professional or handle it on your own, the important thing is to take action. Every improvement to your credit score brings you closer to better financial opportunities.

Conclusion

Your credit score is more than just a number—it’s a key factor in your financial opportunities. From qualifying for loans to getting the best interest rates, maintaining a strong credit score can save you money and open doors to better financial products.

The average FICO score in the U.S. is 717, placing most Americans in the “good” credit range. If your score falls below this, don’t worry—small, consistent actions like paying bills on time, reducing debt, and monitoring your credit report can lead to meaningful improvements. For more complex issues, working with a professional credit repair service may be worth exploring.

Whether you’re just starting your credit journey or looking to boost an already solid score, taking control of your credit is one of the smartest financial moves you can make. A better score doesn’t just mean better loans—it means less stress and more opportunities.