Average Credit Score in America: 2023 Report

Fair Isaac Corp.'s FICO Score and VantageScore are two of the most widely used scoring models in the country. Both models range between 300 and 850 — and the higher the score, the better. The average credit score varies greatly among different populations, ages and income levels, some of which are explored below.

What is the average credit score in America?

The average credit score in the U.S. is at an all-time high of 716. This coincides with what the Consumer Financial Protection Bureau defines as "prime."

About 1 in 5 American adults either have no credit history ("credit invisible") or are unscorable. As a result, these individuals will have difficulty obtaining new lines of credit.

In the eyes of lenders, credit scores fall into several buckets, which indicate how risky it may be to extend credit to an individual. Outside of playing a role in approvals for a loan or credit, these scores can also impact an individual's lending terms. Perhaps the most important terms among those are interest rates.

FICO credit scores break down in the following manner:

This means the average credit score of 716 is in the good range.

Though the average credit score has generally improved or remained the same since 2005, slight dips were seen around the Great Recession that ended in 2009. A large number of people declaring bankruptcy or defaulting on their loans would have caused their credit scores to plummet, which in turn would have affected the overall average.

Average credit score by age

Millennials (ages 26 to 41 in 2022) have an average credit score of 687, while baby boomers (ages 58 to 76) have an average credit score of 742.

The average credit scores coincide with the financial situations facing younger generations. It’s usually around the millennial age range that major expenses and debt begin to rack up — such as weddings and first mortgages, among others. Despite their ages, millennials hold an average of $4,930 in credit card debt.

The other age group whose average credit score skews lower is Generation Z (ages 18 to 25). A contributing factor to this is the limited access to credit this age group faces. Following the CARD Act of 2009, it became significantly harder for 18- to 21-year-olds to open new credit card accounts. As a result, many young adults don’t begin building a credit file until later in life — driving averages down.

Americans of all ages owe debt. In fact, U.S. household debt spiked to $17.05 trillion in the first quarter of 2023 — the latest available data — according to the Federal Reserve Bank of New York. That’s the highest level since tracking began in 1999.

Average credit score by income

While debt-to-income ratio doesn’t play a direct role in determining one's credit score, it does have an indirect one. One of the factors lenders consider when modeling an individual's credit risk is their credit utilization — the percentage of total available credit a consumer is using month to month.

To improve one's credit score, credit utilization should generally be kept below 30%. The lower one's income is, the more a consumer may rely on their credit for their expenditures.

Another way income may play into credit utilization, and ultimately one's credit score, is by determining one's credit limit. Credit issuers look at borrowers’ incomes when deciding on the amount of revolving credit that should be issued.

In turn, by having significantly lower credit limits, it becomes easier for lower-income individuals to eat up a larger portion of what's available, increasing their credit utilization.

The graphic below shows that median credit scores are highly correlated to income.

For context:

Aside from the ability to make monthly payments on time, which may be difficult, people with lower incomes have access to less credit, meaning their credit utilization would be higher with smaller debt. This, in turn, lowers credit scores, which can, in turn, lower credit availability.

Average credit scores throughout the U.S.

The lowest credit scores in America can be found in the South: Mississippi (680), Louisiana (689) and Alabama (691). Meanwhile, Minnesota (742) and Vermont (736) have the highest average score among U.S. states.

Average credit score of homebuyers

The average credit score of homebuyers across the 50 states and the District of Columbia is 731.

We used LendingTree data to look at the average credit score of homebuyers who took out 30-year, fixed-rate loans between January and December 2020.

The average credit score was highest in the District of Columbia (754) and Hawaii (748) and lowest in Alabama (713) and Michigan and New Mexico (both 718).

Sources: FICO, VantageScore, Experian, Federal Reserve Bank of New York and LendingTree.