To check or not to check; that is the question. People, in general, do not yet realize the importance of credit score and the overall effect it plays on their lives (from loan applications to job applications). Yet, like a criminal record, bad credit history is there to stay. According to numerous credit score statistics, having a low credit score entails having a (much) harder time getting approved for loans; not to mention that you’ll have to pay exorbitantly high interest rates as a result. In this article, we’ll provide an answer to the following questions: what is considered good credit, what is the FICO score range, what is the highest credit score possible, and more.
Read on to find out more about the different credit scores, how they work, what the averages are, and how to get them!
Top 10 Key Credit Score Statistics 2020
- The US has a mean FICO score of 703.
- 45% of college students don’t know their own credit scores.
- 728 is the credit score of the average person buying a home in the US.
- The percentage of those buying a home with a credit score of less than 620 is as low as 6.8%.
- When it comes to the average credit score by age, Millennials have a score of 634.
- 4 out of 10 adults stated that knowing a potential partner’s credit score could change their willingness to date them.
- People’s credit scores get better as they get older.
- 19% of Americans don’t have a credit score.
- 47% of employers look at a prospective employee’s credit score before deciding on whether to hire them.
- There are 12 US states where 40% of the population has credit scores that are considered subprime.
General Credit Score Facts and Statistics
1. The two credit scoring models used in the US the most are FICO and Vantage.
(ValuePenguin)
Essentially, these scoring models use ranges anywhere between 300 and 850.
In a nutshell, the higher the number, the better the credit score. Conversely, lower figures mean you have a poor credit score.
2. Your repayment history comprises 35% of your FICO score.
(Shift Credit Card Processing)
Facts about your credit score indicate that besides your repayment history, there’s also the amount you owe in debts, which is yet another 30%.
Additionally, the overall length of your credit history accounts for 15%; your new credit counts for 10%; plus, a credit mix entails another 10%.
3. When it comes to your VantageScore, your repayment history accounts for a whopping 40%.
(Shift Credit Card Processing)
Your age and the type of credit are responsible for 21%; the percentage of the credit you’ve used accounts for 20%; the total balances of your debt take another 11%; your recent credit behavior accounts for 5%; lastly, your available credit comprises just 3%.
4. The US has an average FICO score of 703.
(Experian) (ValuePenguin)
In addition, you will find that the average VantageScore in America is 673.
5. The reported 703 average score is currently an all-time high in the US.
(Experian)
Since 2013, the average score continued its upward trend to this day, which is promising.
Nevertheless, if we take a closer look at the chart, the difference is almost negligible; for instance, the average credit score in 2018 was 701 (an increase of just 2 points).
6. 728 is the credit score of the average person buying a home in the US.
(ValuePenguin)
Meaning, this is slightly above the national average and is considered a good credit score overall.
7. The percentage of those buying houses with a credit score of less than 620 is as low as 6.8%.
(ValuePenguin)
This was determined by a survey conducted by the Federal Reserve that looked at 85,469 applications for mortgages.
All in all, it’s worth keeping in mind that the average credit score in 2019 was 703; meaning, not a whole lot of people apply for home loans beneath this figure.
8. 45% of college students don’t know their own credit scores.
(Creditcards.com)
Knowing your credit score plays a huge role when the time comes to take a loan or buy a house; for instance, it affects your interest rate.
9. 4 out of 10 adults stated that knowing a potential partner’s credit score could change their willingness to date them.
(Creditcards.com)
Of that, 43% of female respondents concurred that a person’s credit score plays a role, whereas just 32% of males said the same.
10. Lenders aren’t just interested in your VantageScore or FICO credit score ranges — there are numerous factors at play here.
(NerdWallet)
In short, they also look at your income and your total debt, as well as your debt history, to determine whether you’re able to repay anything you borrow.
11. Merely 56% of people checked their credit score last year.
(CreditDonkey)
According to the survey, 36% of Americans see no reason to check, whereas another 16% claim that they either don’t know how to do it or that it’s too expensive.
12. 19% of Americans don’t have a credit score.
(CreditDonkey)
Meaning, 45 million people in the US don’t have a credit record or a history of debt to look at.
13. According to credit score statistics from 2018 women, in general, had a higher credit score than men.
(CreditDonkey)
Women had a general VantageScore of around 684, whereas men had a general VantageScore of around 680.
It’s also important to note that men were more indebted than women during the same time frame.
14. 47% of employers look at a prospective employee’s credit score before deciding on whether to hire them.
(CreditDonkey)
Consequently, having a bad credit score could potentially impede your ability to get hired.
Remember, this information is available to potential employers.
Statistics on Credit Score Ranges
15. People’s credit scores get better as they get older.
(ValuePenguin)
Nevertheless, the 30 and 39 age group has the most people with a credit score that is sub-620.
Also, by looking at credit card statistics, younger people — those under the age of 21 — are finding it more difficult to get a credit card, which is why they have a low credit score.
16. In essence, the more someone earns, the higher their credit score will be.
(ValuePenguin)
Considering that people with lower incomes get less credit overall, this makes perfect sense.
17. When it comes to the average credit score by age, Millennials have a score of 634.
(Creditcards.com)
The same data shows that the Silent Generation has the highest average credit score of around 730.
On the other hand, Baby Boomers have an average credit score of 700, Generation X has an average of 655, and Generation Z has an average score of just 631.
18. A credit score between 300 and 629 is considered bad.
(NerdWallet)
Apart from this, what are the credit score ranges?
Well, 630–689 is considered a fair credit score; 690–720 is considered good; lastly, everything above 720 (up to 850) is deemed excellent.
In short, a bad credit score makes it difficult to take a new line of credit, whereas a fair credit score won’t hinder you as much but you’ll still have to pay higher interest rates than people with a good credit score.
An 850 credit score will net you the most preferable interest rates, and as such, getting a new line of credit will be comparatively easier.
19. In late 2019, it was determined that only 20% of FICO credit scores were under 600.
(NerdWallet)
In addition, approximately 22% of credit scores were between 600 to 699, and another 22% were either 800 or better.
20. Credit score statistics show that 67% of people in the US have a FICO credit score that is considered good (690 and above).
(Shift Credit Card Processing)
As previously mentioned, the average credit score in the US is 703.
21. Around 11.7% of people in the US have a score of 549 or below.
(CreditDonkey)
Although this might seem like a lot, the percentage was a lot higher back in 2019 (16%).
22. Less than 1% of US citizens have a perfect (850) FICO score.
(CreditDonkey)
As expected, not many Americans are able to reach this score.
Statistics on Average Credit Score by City or State
23. Alabama, Arkansas, Mississippi, and Louisiana are the US states with the lowest credit scores on average.
(ValuePenguin)
Southern states didn’t recover as well as other states after the recent recession — hence why their credit scores are much lower. On the plus side, retirement costs are lower as well.
24. There are 12 US states where 40% of the population has credit scores that are considered subprime.
(ValuePenguin)
These states include Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Nevada, New Mexico, Oklahoma, South Carolina, Tennessee, and Texas.
Average Credit Score by Race and Class
25. The “lower class” has the lowest credit score with an average of just 664.
(Shift Credit Card Processing)
Naturally, the upper class has the highest credit score with an average of 775.
26. African-Americans have the lowest credit score of all races, with an average score of 677.
(Shift Credit Card Processing)
The Hispanic race group follows suit with an average score of 701.
27. Stats on the average credit score by race also reveal that the Asian race group has the highest average credit score — 745.
(Shift Credit Card Processing)
In addition, white people have the second-highest credit score with 734.
FAQs
What percentage of the population has a credit score over 800?
(NerdWallet)
Around 22% of the population has a credit score of over 800 in the US — hence why this credit score range is considered exceptional as not many people are able to reach it.
What percentage of people fall into the credit score range of good?
(Shift Credit Card Processing)
Most people who manage their debt well have a credit score that is considered good. Still, it takes a lot of hard work to reach an “excellent” status.
Overall, 67% of people in the US fall into this category.
How hard is it to get an 850 credit score?
(The Ascent)
It can be extremely difficult to get a credit score of 850 — hence why it is considered the perfect FICO score and is the highest credit score you can get.
In order to get it, you have to take a lot of things into account — some of which you can’t actively control such as your age and your debt history.
What is the average person’s credit score?
(ValuePenguin)
In the US, the average credit score via the FICO model is 703, which falls into the “good” category. Moreover, the average VantageScore is around 673, which is also considered a good score.
Bottom Line
A credit score can affect a person’s life in more ways than one. Unfortunately, not many people realize this (until it’s too late).
Don’t be that person and keep a close eye on your credit score!
With the help of our credit score statistics you should be able to discern the difference between credit score levels, what’s considered good credit, what’s the highest and lowest credit score, the general credit score definition, etc.
So, use this new insight well, stay on the safe side, and keep those debts at bay.
