credit score


“Do I have a good credit score?” The answer to that loaded question depends on many factors, but experts agree that America as a whole has a great credit score.

The National Average Is High

For the past few years, the average American credit score has hovered around 700. As of April 2018, many reports state that the average score is 695.

The national average score is higher now than it has ever been, and according to VantageScore, 35% of American credit scores are higher than 760. A large percentage of Americans have excellent credit, and the average American has decent credit.

The Average by Age Is Troubling

As positive as the national average is, the average by age provides cause for concern. According to ValuePenguin, the most common credit score for people less than fifty is less than 621. The average for these age groups is higher, but the largest percentage of the under fifty age group has a low score.

For the younger than thirty age group, 29% of Americans have a score between 621-680, which is only 10% less than the group with a score of less than 621.  This suggests that people who have spent less of their adulthood outside of a major economic downturn are earning better credit scores.

The Average by Age Is Troubling

There are many factors involved, but, in general, Americans are not borrowing as much as they did in past years.

Whether from necessity or as a result of learning from bad experiences, it seems that one long-term effect of the Great Recession is that Americans are more cautious borrowers. Despite the financial trials that corporations or the government may be facing, everyday people are doing a better job of managing their affairs. At least in this respect, the financial future looks much brighter.