What is the average credit score in the U.S.? (2024)

The average VantageScore 4.0 credit score in the United States was 701 as of September 2023, a four-point increase the previous year. Most credit scoring systems are based on a range of 300 to 850, and a 701 would generally be considered a good credit score.

We’ll take a closer look at how average scores vary by age group and state, then dive into more details about credit scores. Don’t worry if you’re below the average — there are some straightforward options for increasing your score. And if you’re above it that’s great, but you still might want to know how to improve or maintain your score.

What is the average credit score in the U.S. by age?

Although the average credit scores changed from 2022 to 2023, there was a consistent increase in average scores from the youngest to oldest age group. For September 2023, the Baby Boomer Generation has the highest average credit score with a 740, while Gen Z has the lowest average credit score at 663.

VantageScore representatives shared the average credit score by age group with us directly, but you can find other interesting credit score and debt stats broken down by location and age group on VantageScore CreditGauge.

How can age affect your credit scores?

Credit scoring models don’t consider your age as a factor in your credit score, and lenders generally don’t consider age either. However, credit scores do consider the age of the oldest and youngest accounts in your credit report, and the average age of all your accounts.

Older people may have higher credit scores, on average, partially because they have older credit accounts and a higher average age of accounts. They may also have more stability in their lives, allowing them to more easily manage their credit accounts.

Some people mistakenly think that closing a credit card will shorten their credit history. But that’s not the case. Both FICO and VantageScore credit scores consider your opened and closed accounts in their age-related scoring factors.

It’s true that once your account is closed, it can fall off your credit report after 10 years. Or if you’re behind on payments when your account is closed, seven years after the account first went delinquent. And once the account falls off your report, it won’t affect your credit scores at all.

What is the average credit score in the U.S. by state?

As of October 2023, the average VantageScore 4.0 credit score in the U.S. was 701 — almost afive-point increase from a year earlier. A 701 is considered a good credit score, and if your credit score is around the average, you can likely qualify for many credit cards and loans.

However, averages do vary when you focus on more narrowly defined groups. If you want to see how you compare to your neighbors, here’s how the average credit score breaks down by state.

The state with the highest average credit score was Minnesota (727), followed closely by New Hampshire (726) and Vermont (724). The same states held the top three spots a year earlier as well, although with slightly different scores — 726, 721 and 722, respectively.

Mississippi (669), Louisiana (675) and Alabama (679) had the lowest average credit scores in October 2023. The scores increased from a year earlier, but the order was the same in Oct 2022 with average credit scores of 662, 668 and 672. In 2022, Arkansas also almost tied Alabama for third-lowest average score.

What state has the highest credit score?

As of October 2023, Minnesota has the highest credit score. Minnesota residents have an average credit score of 727, according to VantageScore.

VantageScore CreditGauge updates the average credit scores by state every month and tracks other credit-related trends, such as average delinquency rates, new account openings and credit utilization rates.

Does where you live affect your credit score?

Credit scoring models calculate your credit scores based on the information in one of your credit reports from Experian, Equifax or TransUnion. However, credit scores don’t reflect all the information in your credit report.

Your personal information is at the top of your report and can include your name, date of birth, current and previous addresses and Social Security number. The credit bureaus can use this information to help connect new credit accounts to your credit report, and they might give it to other organizations that are trying to confirm your identity.

But none of your personal information, including where you live, factors into your credit scores.

Additionally, information that isn’t included in your credit report, such as your nationality, gender, sexual orientation, political and religious affiliations, employment status, income and net worth, aren’t included in your credit reports or scores.

What's the highest credit score you can have?

Most credit scores range from 300 to 850 — so, the highest score you can get is 850. However, you generally don’t need to have a perfect credit score to get the best interest rates and loan offers.

Many creditors offer the same rates to anyone who has a score above a certain threshold. The specific cutoff can vary, but it’s often in the high 700s. As long as you have an excellent score that’s in the high 700s, extra credit score points might earn you bragging rights, but they don’t necessarily have any other value.

There are a few exceptions. For example, FICO creates industry-specific credit scores for auto lenders and card issuers that range from 250 to 900. VantageScore versions 1.0 and 2.0 also have different score ranges, but those scores aren’t widely used.

Tips for increasing your credit score

The specific steps you’ll want to take to improve your credit score may depend on your current situation, such as your current score and whether you have negative marks in your credit history. However, in general, you can improve your credit scores if you:

• Make bill payments on time: Paying bills on time can be important for building a good payment history. It's the most important credit score factor. A late payment can hurt your score and continue impacting it for up to seven years. Having accounts sent to collections or filing bankruptcy can also hurt your score for years.
• Lower your credit utilization ratio: If you’re using a large portion of your credit cards’ credit limits — even if you pay your bills in full — the resulting high credit utilization ratio might be hurting your credit score. Paying down the credit card balances might increase your score quickly. If you already pay your bills in full but you use credit cards to earn rewards, making early payments or requesting a credit limit increase might help.
• Use installment and revolving credit: It’s not a major scoring factor, but having a mix of revolving and installment credit accounts, such as credit cards and loans, can help your credit score.

As you work to improve your credit, be mindful of applying for new credit accounts. Although you might want to open a new credit card or get a credit-builder loan, credit applications can lead to hard inquiries that hurt your credit scores. Additionally, each new account will lower the average age of your credit accounts — a higher average age is best.

Why your credit score matters

Your credit score can impact:

• Your ability to qualify for credit cards and loans.
• The interest rate you receive on credit cards and loans.
• The credit limit or loan amount you qualify for.
• The fees you have to pay on certain loans.
• Whether you get approved for a rental home.
• Your security deposit amount for new utility or telecom accounts.

Having good credit can save you money by helping you qualify for better financial products (like the best rewards credit cards and cash-back cards), pay less in interest or fees and keep more money in your pocket when you open accounts. Your underlying credit reports, although not your scores, can also affect some employment opportunities and insurance premiums.

In short, good credit can make life easier and less expensive.

Frequently asked questions (FAQs)

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