Your credit score is one of the three-digit numbers that has the most influence in your financial life. Your score can influence if you can get approved for a mortgage, what car loan interest rate will be awarded to you or what car loan you will even be eligible for, and even if you can get approved for an apartment rental. Are your credit scores above average compared to the public, or are you below your age group? Either way, what is average credit score by age? and how can you improve your score?
In this guide, you will learn the average credit score for your respective age group, the reasons your credit score will fluctuate, and proven ways to improve your credit score, no matter where you stand.
What is the average score in the US ?
Based on Experian’s latest review of the U.S. Consumers, the national average FICO Score is 715, placing it squarely in “Good” territory. FICO Scores range from 300 to 850, and FICO is the model that the vast majority of lenders rely on to decide your creditworthiness. While VantageScore is a model that has many lenders using it (it has a 300 to 850 scale and produces results similar to FICO), it doesn’t tell the whole story. Scores can differ significantly based on your age, and understanding those gaps can give you a good idea of your place relative to others.
Average Credit Score by Age Group
Here’s a look at average FICO Scores by age group based on the Consumer Financial Protection Bureau and Experian data:
Gen Z (18-24 years): The Early Stages of Credit Building
Those aged 18-24 are relatively new to the world of credit. With a score of 679 average in this group, most still need to work on establishing credit. “Thin file” (not enough information on your credit report) is the most frequently occurring credit building problem, and lenders feel un-sure when making lending decisions with that much mystery behind it.
Your objective should be to gain history and “thicken” that file by utilizing starter products for credit. If this is the age range you fall under, don’t fret. It is your financial beginning, and a score of 679 average is perfectly acceptable. My most frequent advice to members of this group is, the earlier you begin to establish, the more your future self will thank you.
Millennials (Ages 25 to 44): The Building Phase
The scores start to climb consistently into the millennium years. The 25-34 year old will score 690 and by 35-44 you will be scoring 709. During these years significant purchasing decisions often occur, for instance, purchasing their first house, making car payments which leads to an increase in their installment accounts. Making regular, timely payments throughout the decade will significantly benefit their credit for decades. I believe this honestly is the most exciting phase in developing credit. For every large life purchase you make is also building credit, so I encourage you to embrace it.
Gen X (45 to 54): Benefiting from an Extended Credit history
It pays off to be 40 something in that you have years worth of credit history working in your favor by this age. By this age segment consumers have an average score of 718-the result of many years of accounts being managed and a more diverse and robust mix of products used.
Credit utilization is now the key factor as one’s higher earning years may prompt the consumer to leverage the credit utilization factor of revolvers. The way I have experienced it, it is very easy for one’s good credit practices over years of effort to unravel and I recommend to my clients that they always have a keen eye and don’t let life creep ruin their great credit foundation.
Baby Boomers and the Silent Generation (Aged 55 and Up): At their Credit Peak.
It’s not too surprising to find the older age groups as the top owners of high average credit scores with 55-64 landing at 745 and the 65+ group at an impressive 760. The contributing factors for these score levels is having years upon years to build credit, an overwhelming need for minimal credit use during their retirement years and over 30 years of consistent payment history all the while creating these fantastic numbers. I really feel this step deserves a toast.
If you are a member of this age group then it was well earned and you deserve a number you should be very proud of due to its demonstration of your consistency in responsible spending over many decades.
Why is the average credit score higher as people get older?
A credit score is not just a snapshot of your personal habits. It is a measurement of how much credit information you have and how old it is.
The five FICO factors that determine your score:
Build Your Credit, Build Your Life: Strategies by Age
Young adults (18-24): Thicken your credit profile early
The first and most crucial thing to do at this age is to start. Without enough history, credit files cannot be scored, preventing you from many financial opportunities. Here’s how to begin:
- Open a secured credit card, and put everyday, recurring purchases on it. Pay the balance in full every month.
- Become an authorized user on a parent’s or relative’s credit card with a long, clean history.
- Apply for a credit-builder loan at a credit union or community bank, if available.
- Pay all student loan payments on time, as these are reported and affect your payment history.
If you are a working professional between the ages of 25-44: “Control Use & Vary Investments.”
You should have some credit history under your belt by this point. The goal now becomes more focused on how you utilize that credit:
- Keep your total utilization of credit card balances below 30% across all of your accounts. Aim for under 10% for the greatest strengthening of your credit file.
- Do not close older accounts unless it is absolutely necessary. An account closed can shorten the average age of your credit file.
- If you have an existing high balance, focus on paying down the balance prior to opening additional accounts.
- Ask for credit line increases on existing accounts as a method to lower your utilization ratio without increasing spending.
For ages 45-64: Guard and Maintain Your Assets
Given a long, favorable history of credit, the strategy shifts from aggressive building to conservative management:
- Pull your reports from all three credit bureaus yearly ( AnnualCreditReport ) and correct any errors.
- Enroll every single debt account to automatically pay a minimum payment each month. Never again worry about a late payment.
- Exercise caution with co-signing. If the individual can’t make the payment, your file gets dinged.
- If retirement is in your future, plan major borrowing before the income level changes.
Over age 65-and for the rest of your life: keep the credit file active
Even in retirement it is wise to keep your credit file active. A stale credit file is one which can be problematic when it is time to use it:
- Keep one or two credit cards active with small purchases that are made and paid back on a regular basis, to avoid them being closed for inactivity.
- Check your credit report regularly for any indication of identity theft which targets senior citizens in high numbers.
- Think about implementing credit freezes with all three bureaus if you are not applying for new credit.
How long will it take to build credit?
There’s no set schedule, and there’s no way to ensure a highest credit score. However, here is what credit reports and lenders show over time: Paying down large balances may start to influence your credit score within one or two billing cycles. The negative influence of bad payment history (like late payments) fades over time and drops off your report after seven years.
It typically takes between six and twelve months of responsible credit activity to “thicken” your file, from a blank slate. Getting to a “Very Good” or “Exceptional” score will likely take years of responsible activity.
Conclusion: Credit Score Depends on time and behavior, so use it well.
It’s not a surprise that your average credit score increases as you get older, the reasoning behind this is because as the years go on you have had more payment history accumulated. It is true that the length of a credit file increases over the years so will the number of varied accounts increase, thus increasing your credit score. But, age isn’t responsible for good credit, it’s a person’s consistent behavior that is.
If you are 22 and trying to build credit and then again in 58 and trying to bolster your credit before you are done working, you need to maintain payment, keep utilization rates below max capacity, preserve your open accounts, and monitor your score frequently. These consistent behaviors are the habits that will bring up your credit score and maintain a healthy number throughout the years.
Your current place within your age group’s average credit score is only the current milestone, so continue on, and that number will rise if you maintain proper credit building behavior.