Posted by: Alina Comoreanu

The average credit score in the U.S. is anywhere from 669 to 699. It depends on which credit report and credit-score model are used.

Below, you can learn more about the average credit scores by year, state, age and more. Reviewing these credit score statistics will give you a better sense of how good your credit score is relative to those of your peers. Credit-score averages can also tell us a lot about the health of consumers’ finances and the strength of the economy.

Finally, it’s important to note that while many different types of credit scores exist, the most popular ones all use the standard 300 to 850 credit-score range. They’re also based on the same information – your credit reports – and produce very similar results in most cases, according to the Consumer Financial Protection Bureau. So it doesn’t really matter whether an average credit score is based on a VantageScore or FICO model, as long the data is consistent. After all, there isn’t one “real” credit score.

1. Average Credit Score by Year
2. Average Credit Score by Age
3. Average Credit Score by State
4. Average Credit Score by City
5. Average Credit Score by Income
6. Full Credit-Score Distribution
7. Ask The Experts

Average Credit Score by Year

The average U.S. credit score can tell us a great deal about the health of consumers and the economy more broadly. That’s especially true when you examine credit-score averages over time.

For example, the average VantageScore credit score improved by 11 points from 2007 to 2015, reflecting our rebound from the Great Recession.

Credit-score statistics tend to be relatively slow to reflect such big economic events, however, making them somewhat unreliable for predictive purposes.

Sources: MyFICO.com & New York Fed Consumer Credit Panel/Equifax

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Average Credit Score by Age

Statistics show that credit scores tend to improve as people age. As you can see from the table below, the oldest people have the highest credit scores, on average. And scores decline by age group all the way to the youngest cohort, which has the lowest average credit score.

The accumulation of wealth and experience over time is the most likely explanation for this. As people age, they also tend to grow more financially responsible and secure, qualities that lend themselves to credit improvement. And the more time you have, the more opportunity there is to recover from mistakes. Another reason is the way credit scores are calculated. The length of your credit history accounts for a significant portion of your score (around 15%), for one thing.

Source: Experian 2016 State of Credit

There is not a direct correlation between credit quality and age, though. In 2016, the average person with bad credit was 11 years older than the average person with excellent credit, as the following table shows.

Average Age by Credit Score Tier

Credit Score Tier	Average Age
Excellent	41
Good	45
Fair/Limited	47
Bad	52

Source: WalletHub

Some people assume that younger folks have lower credit scores because they now face a tougher time obtaining credit due to the CARD Act’s restrictions. But you can still get a credit card when you turn 18. You just need to demonstrate that you have access to enough income or assets to afford the minimum monthly payments, which are usually around $15 to start.

Besides, 56% of college students have been using credit cards as of 2016, according to Sallie Mae, and the average student has three cards.

Average Credit Score by State

The average credit score by state ranges from 642 in Mississippi all the way to 702 in Minnesota. And both states are fairly representative of their broader regions, as you can see below. If you’re wondering, blue states have a higher average credit score (676) than red states (667).

Source: TransUnion

Average Credit Score by Region

Region	Average Credit Score
Northeast	676
South	657
Midwest	680
West	676

The South has the worst credit, on average (657), whereas the Midwest has the best (680). In fact, four of the five states with the highest average credit scores are in the Midwest. With that being said, every region has at least one state whose residents boast good credit, on average.

So while job opportunities, living costs and other local factors definitely affect credit-score averages, it’s also true that credit scores can flourish anywhere.

Average Credit Score by City

It’s no surprise that The Villages, Fla., an upscale retirement community, has the nation’s highest average credit score (779). As mentioned in the Average Credit Score by Age section, older people tend to have the best credit. Unfortunately, the cities with the lowest credit scores aren’t all that surprising, either. Camden, N.J., (566) and East Saint Louis, Ill., (572) both have long struggled with high crime and unemployment rates.

Below, you can find your city’s average credit score and see how it compares nationally. And in case you’re wondering, the 50 state capitals have a slightly higher average credit score (666) than that of the nation’s capital (664).

Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/25578/average-credit-score-by-city.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="https://ift.tt/2jLONTY>Source: TransUnion (VantageScore)

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Just to recap, here’s how those city-average credit scores compare to the nationwide average credit score for 2016:

Average Credit Score in the U.S.

Type of Credit Score	2016 Average
TransUnion VantageScore	669
Experian VantageScore	673
Equifax VantageScore	699
FICO Score	699

For your reference, the city averages are TransUnion VantageScores. You can check your latest TransUnion VantageScore for free on WalletHub.

Average Credit Score by Income

You don’t need a lot of money to build a good or excellent credit score. Anyone can do it, as long as they spend within their means and always pay their bills on time.

But it’s still interesting to see how the average credit score changes by income level.

Annual Income	Average Credit Score
$30,000 or less	590
$30,001 - $49,999	643
$50,000 - $74,999	737

Source: WalletHub, 2017

Full Credit-Score Distribution

For those interested in going beyond credit-score averages, the following breakdown of where different groups of people fall on the standard 300-to-850 credit-score scale will give you a better understanding of just how much consumers’ financial experiences can vary. These statistics also show a clear divide between people with bad credit and the rest of us, which underscores the importance of using credit responsibly.

All columns may not add up to 100% due to rounding.

Ask The Experts

For more insights on what we can learn from credit score averages, WalletHub posed the following questions to a panel of personal finance experts. Check out who they are and what they said, below.

• What can we learn from the average person’s credit score and how it changes over time?
• How responsive are credit score averages to periods of economic distress?
• Why do you think Minnesota has the highest average credit score (702), while Mississippi has the lowest (642)?

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• James N. Mohs Assistant Professor of Accounting at the University of New Haven
• Keith Moreland Professor of Accounting at the University of Michigan-Flint
• Kwamie Dunbar Associate Professor of Finance at Sacred Heart University
• Thomas A. Hanson Assistant Professor of Finance in the Paseka School of Business at Minnesota State University Moorhead
• Jim Vogt Lecturer in the Charles W. Lamden School of Accountancy at San Diego State University
• Ariel Belasen Associate Professor in the Department of Economics and Finance at Southern Illinois University - Edwardsville
• William C. Johnson Associate Professor of Finance at Suffolk University
• Mark Eppley Professor of Business Administration and Accounting at Everett Community College
• Paul F. Goebel Senior Director, University of North Texas Student Money Management Center

James N. Mohs Assistant Professor of Accounting at the University of New Haven What can we learn from the average person’s credit score and how it changes over time? Credit scores, as well as the trends that they expose, may be extremely helpful for lenders granting credit. How scores change over time or the trending can reflect financial issues with the borrowers. For example, a history of late or delinquent payments would indicate that a borrower may be overextended, and any additional lending may be risky. Conversely, a history of current payments and no delinquencies may indicate that a borrower may be of lower risk. As it stands, right now there are multiple different credit reporting agencies that will generally score a person’s creditworthiness differently and, accordingly, will have different scores. This can often be problematic, when the variable of timely corrections is entered into the calculations. How responsive are credit score averages to periods of economic distress? In general, credit scores seem to be a lag indicator of individual credit history. In short, they may tell lenders what has historically happened, but are not indicative of future performance or expectations. Essentially, credit scores are driven by the reporting vendors or entities, and are often either not current, or are subject to needed correction. Keeping in mind that credit scores are driven in part by vendors’ reporting of events/issues, responsive credit scores during periods of economic distress will be subject to the same vendor policies. If policy driven, one should expect them to be creditor driven and not economic distress driven. Why do you think Minnesota has the highest average credit score (702), while Mississippi has the lowest (642)? There may be several reasons why Minnesota has the highest average credit scores, and Mississippi has the lowest. To understand the state-by-state differential trends, lenders or other users would need to look at demographics, industrial base and unemployment rates within the target states. Keith Moreland Professor of Accounting at the University of Michigan-Flint What can we learn from the average person’s credit score and how it changes over time? Changes in a person’s credit score indicate how well that person established, paid off, and stayed current on her/his debt. A person who gradually (not dramatically) increases borrowing capacity and then stays current and pays off that debt on time will see her/his credit score rise. A decline in a credit score would result from not staying current on servicing their debt. To a degree, there is a Goldilocks component to credit scores: if you have too much or too little debt, your credit score will not be maximized. Of course, however, too much debt and not staying current with its repayment is significantly more problematic than too little debt. So declines in credit scores probably indicate problems in repaying loans. How responsive are credit score averages to periods of economic distress? It is surprising to see that average credit scores were not significantly affected by the economic distress experienced during the economic downturn around 2008. The data I found showed that national average credit scores declined only from 690 just prior to that downturn, to 687 during that downturn. That is a pretty small decline, which does not seem to be in line with the news reports of large numbers of people being underwater, and defaulting on mortgages and other debts during that time period. It suggests to me that many lenders recognized the economic distress in would-be borrowers, and limited the amounts that were loaned. But this data would indicate that the short answer to your question is not really responsive. Why do you think Minnesota has the highest average credit score (702), while Mississippi has the lowest (642)? States with strong, healthy and stable economies will have higher average credit scores. By stable, I mean not boom and bust. Some economically strong states that are more boom-or-bust would have lower credit scores than states that have healthy economies but are more stable. The boom-or-bust situation could result in greater numbers of people getting credit when times are good, but having a more difficult time paying it off when times are not so good. States with lower average credit scores generally have weaker and, to a degree, more volatile economies. The examples you cite in Minnesota and Mississippi, and generally states ranked at the top and bottom of average credit scores fit into this dichotomy. Kwamie Dunbar Associate Professor of Finance at Sacred Heart University How responsive are credit score averages to periods of economic distress? This is an area that needs work. The average credit score does not seem very responsive to economic distress. Credit scores should also be sensitive to economic distress in geographic locations. Why do you think Minnesota has the highest average credit score (702), while Mississippi has the lowest (642)? Factors could range from:

• Use of credit;

• Credit history;

• Default experiences;

• Incomes;

• Establishment of credit;

• Employment histories;

• Unemployment rates.

Thomas A. Hanson Assistant Professor of Finance in the Paseka School of Business at Minnesota State University Moorhead What can we learn from the average person’s credit score and how it changes over time? Fundamentally, a credit score measures how a person handles debt. Does an individual avoid excessive debt and make payments on time? If so, that person will have a good credit score. Therefore, a credit score generally demonstrates financial well-being. One should be careful not to extrapolate or make assumptions about a person's character or health or any other factor besides the basic questions of debt and repayment. How responsive are credit score averages to periods of economic distress? One major component of a person's credit score is the utilization percent. Rolling any balance will have an immediate negative impact on the credit score. Therefore, it's natural that periods of economic distress will cause an aggregate decrease in the average credit score. Of course, any late or missed payments will only compound that problem. Why do you think Minnesota has the highest average credit score (702), while Mississippi has the lowest (642)? This comparison of credit scores shows the resulting difference in many underlying factors, including employment rates, education, and median income. Minnesota tends to score well (and better than Mississippi) on many economic indicators, and the average credit score reflects the generally stronger economy in Minnesota. Jim Vogt Lecturer in the Charles W. Lamden School of Accountancy at San Diego State University

What can we learn from the average person’s credit score and how it changes over time?

An average person’s credit score is typically a good measure of how effectively that individual has managed credit and payments over time. An increasing credit score can result from making payments on time, reducing the overall amount of debt, and limiting the occurrence of new debt.

How responsive are credit score averages to periods of economic distress?

Times of economic distress can impact consumers in different ways, such as decreases in income or increases in expenses, and can have negative effects on credit scores. For example, layoffs, or other reductions in income, can squeeze consumers’ budgets, making it difficult to make payments on time or cause consumers to take on additional debt, both of which can have negative effects on credit scores. Similarly, increased or unexpected expenses, such as higher taxes or medical bills, can be devastating and impact a credit score.

Why do you think Minnesota has the highest average credit score (702), while Mississippi has the lowest (642)?

I imagine it is a combination of several elements, likely including education level, income levels, and local economic conditions. If we were to look at these and other elements by state, we might find some levels of correlation.

Ariel Belasen Associate Professor in the Department of Economics and Finance at Southern Illinois University - Edwardsville

What can we learn from the average person’s credit score and how it changes over time?

A credit score is a composite index measuring an individual’s creditworthiness, i.e., their likelihood of repaying a debt. Unsurprisingly, the main components the score is based on are payment history (35 percent) and amount owed (30 percent). The remaining 35 percent is broken down into length of credit history (15 percent), mix of credit (10 percent) and how much new credit you have accessed, i.e., your credit inquiries (10 percent). So, if you open a single card at age 18 and pay it off in full every month, your credit score should look pretty solid when it comes the time to apply for a car loan or a home loan.

How responsive are credit score averages to periods of economic distress?

As people hold more long-term debt on their cards and/or miss payments due to economic distress, credit scores will fall very rapidly because that hits at the larger components of the score. What could collapse in a few months may take a decade to rebuild.

Why do you think Minnesota has the highest average credit score (702), while Mississippi has the lowest (642)?

Maintaining a strong credit score requires three things:

• Awareness of due dates;
• Discipline to not overextend;
• Having enough income to pay your cards in full each month.

All three of these things are correlated with educational attainment. And Mississippi ranks among the lowest tier of states in terms of high school graduation rates, and ranks high among states with the highest levels of poverty.

William C. Johnson Associate Professor of Finance at Suffolk University

What can we learn from the average person’s credit score and how it changes over time? Why do you think Minnesota has the highest average credit score (702), while Mississippi has the lowest (642)?

Credit scores change very little over time by person. People with good credit tend to keep good credit, and people with bad credit tend to keep bad credit. That said, over a lifetime, a person generally increases in their credit score due to earnings increases and credit history lengthening. Minnesota has a high credit score because it is wealthy and well-educated (relative to Mississippi). Education and wealth are highly correlated with credit score. If you were to examine credit score by areas of Boston, I am sure you would find the same thing. Beacon Hill residents will have much better credit scores than Revere residents. But they also have a much higher level of education and income.

Mark Eppley Professor of Business Administration and Accounting at Everett Community College

What can we learn from the average person’s credit score and how it changes over time?

Not much, other than behavior changes from a young age to a more mature age.

How responsive are credit score averages to periods of economic distress?

Not very responsive. This is a lagging indicator of economic distress.

Why do you think Minnesota has the highest average credit score (702), while Mississippi has the lowest (642)?

Culture. Midwesterners tend to be more honest and responsible.

Paul F. Goebel Senior Director, University of North Texas Student Money Management Center

What can we learn from the average person's credit score and how it changes over time?

A person's credit score is a reflection of a pattern of behavior over time related to that person's experience using credit. Scores that improve over time reveal a positive pattern of responsibility and accountability. Scores that don't improve - don't. Unfortunately such scores can negatively impact future lending decisions. With time, commitment, and demonstrated positive behaviors with credit and borrowing, anyone can improve his/her credit score. It just take time and a good deal of patience.

How responsive are credit score averages to periods of economic distress?

I believe credit score averages are responsive to periods of economic distress. In times of economic distress, ensuring payments remain a priority on budgets and made on time to keep credit scores strong can be problematic when consumers are dealing with financial insecurity and challenges. The important lesson to keep in mind during periods of economic distress is that strong money management skills - including the responsible use of credit and borrowing - can help prevent financial problems from escalating into crises.

Why do you think Minnesota has the highest average credit score (702), while Mississippi has the lowest (642)?

Many different factors are taken into consideration when ranking states by average credit scores. This is an excellent question and one that I will leave to the experts to answer.

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