Wondering how you stack up against others in your peer group? Curious who has the best credit around, overall? While we are always here to offer the information and tips on how to improve credit scores, sometimes it helps just to know where you stand. That’s what this blog is for! Today on the Credit Rent Boost blog, we are looking at average credit score by age and what that means.
The good news? In general, the average America’s credit score has been on the rise over the last few years! At the end of last year, the average FICO credit score hit 704 for the first time! Here’s how average credit scores break down by age.
Average Credit Score By Age
The Best Credit Score – 60+, 18-29… Not So Much
Americans 60 years and older have the best average credit score with a whopping 743! Unfortunately, on the opposite end of the spectrum is the 18-29 age bracket with the lowest average credit score of 652. Every bracket in between (30-39, 40-49, and 50-59) are ~9-19 points apart, with each age a bit better than the previous.
The reasons for that should be obvious of course! Credit scores are made up of several component parts, from payment history to time in file, and more. There’s a reason we bolded that of course, history, time and length of credit lines are some of the biggest contributors to credit score. That means that with on-time payments, management of debt, and over time, credit scores are more likely to naturally rise. Those who are 18-29 are just starting out fresh on their own credit journeys, so even if they are practicing perfect credit use, the lack of history will put their number on shaking standing for a bit.
What That Means
But wait! Don’t say ‘Ah, forget it, I’m only 29!’ just yet! Let’s look closely at those numbers. The difference between the highest average credit score and the lowest is a measly… 91 points! While it might not be possible to boost your credit score 100 points overnight, that is not some insurmountable obstacle! Through proper credit utilization, and building your credit right, you can break out of your peer groups average and make yourself an exemplary credit machine!
Another thing about those numbers… They seem a bit… low right? After all, people often hear that too many lenders a score of 660 is seen as subprime, so all of these people in multiple age groups have less than stellar credit? On average, yes. The recession 10 years ago did put a lot of people under some pressure and the truth is for every person utilizing credit correctly, there is another who hasn’t a clue. As we mentioned, the average American credit score has reached a brand new high but there’s always room to improve!
If you’re reading this blog, guess what? You’re not them! And while your score might not be, you are already above average because you’re looking to improve your situation, better your credit score, and become the master of your financial destiny! Exciting right?! It should be! With a sound budget, proper credit utilization, and just maybe a credit boost from your rental history, you can break out of the average for your age group!
Remember, don’t let your credit score get you down, there are things you can do to better your situation, even when it seems difficult. To find out more about how Credit Rent Boost can help you accomplish these goals, speak with us now, we’d be happy help you become better than average!
Note: These numbers are all from Time Magazine.