What is good credit by age?
According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.
| Average FICO 8 Score by Generation | ||
|---|---|---|
| Generation | 2022 | 2023 |
| Generation Z (ages 18-26) | 679 - Good | 680 - Good |
| Millennials (27-42) | 687 - Good | 690 - Good |
| Generation X (43-58) | 707 - Good | 709 - Good |
| Age | Average FICO Score |
|---|---|
| 25-40 | 686 |
| 41-56 | 705 |
| 57-75 | 740 |
| 76+ | 760 |
According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.
Consumers in the 26–41 bracket have an average FICO® credit score of 687. By this time, this bracket has generally been established and are growing their careers. Consumers in the 42–57 bracket have an average FICO® credit score of 706. This bracket is in its prime earning years and has an established credit history.
In the U.S., the average credit score is 716, per Experian's latest data from the second quarter of 2023. And when you break down the average credit score by age, the typical American is hovering near or above that score.
How rare is an 800 credit score? An 800 credit score is not as rare as most people think, considering that roughly 23% of adults have a credit score in the 800-850 range, according to data from FICO. A score in this range allows consumers to access the best credit card offers and loans with the most favorable terms.
It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly mortgage payments.
Your credit score is a major factor in whether you'll be approved for a car loan. Some lenders use specialized credit scores, such as a FICO Auto Score. In general, you'll need at least prime credit, meaning a credit score of 661 or up, to get a loan at a good interest rate.
While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
Is there a difference between a 750 and 800 credit score?
A 750 credit score is Very Good, but it can be even better. If you can elevate your score into the Exceptional range (800-850), you could become eligible for the very best lending terms, including the lowest interest rates and fees, and the most enticing credit-card rewards programs.
An 800 credit score shows lenders you are an exceptional borrower. You may qualify for better mortgage and auto loan terms with a high credit score. You may also qualify for credit cards with better rewards and perks, such as access to airport lounges and free hotel breakfasts.
Given that the average credit score for people aged 18 to 25 is 679, a score between 679 and 687 (the average for people aged 26 to 41) could be considered “good”.
What is a bad FICO credit score? A bad FICO credit score may fall in the fair or poor FICO range. FICO considers a credit score to be fair if it's between 580 and 669, and poor if it's below 580. According to FICO, borrowers with a FICO score in a lower range tend to be viewed as a credit risk.
- Review your credit reports.
- Get a handle on bill payments.
- Use 30% or less of your available credit.
- Limit requests for new credit.
- Pad out a thin credit file.
- Keep your old accounts open and deal with delinquencies.
- Consider consolidating your debt.
- Track your progress with credit monitoring.
According to credit bureau Experian, a good credit score is 700 or above. But if you're in your 20s and just starting out, a score of 700 or higher may be tough as you're just establishing your credit history.
| Type of debt | Total owed by an average U.S. household with this debt | Percentage change for total owed between 2022 and 2023 |
|---|---|---|
| Credit cards (total)** | $20,221 | +15.6% |
| Mortgages | $222,474 | +4.04% |
| Auto loans | $35,167 | +4.66% |
| Student loans | $55,347 | +1.59% |
You can borrow from $1,000 to $100,000 or more with a 700 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
editorial guidelines here . A 620 credit score is typically what you'll need to get a mortgage for a home purchase. Although you can buy a house with a credit score as low as 500, you'll pay a higher rate and make a larger down payment.
However, with a 718 credit score, you should qualify for rates on-par with national averages. Also, even though your score qualifies you for a mortgage, it's important to know that the lower your score is, the stronger the rest of your qualifications are generally expected to be.
What is an excellent FICO score?
| FICO Credit Score Ranges | |
|---|---|
| Excellent/Exceptional | 800-850 |
| Very good | 740-799 |
| Good | 670-739 |
| Fair | 580-669 |
For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2022, the average FICO® Score☉ in the U.S. reached 714.
Membership in the 800+ credit score club is quite exclusive, with fewer than 1 in 6 people boasting a score that high, according to WalletHub data.
- Long credit histories. Most people with perfect credit scores have a long credit history. ...
- Perfect payment history. A person who has perfect credit typically has a perfect payment history. ...
- Low credit utilization ratio. ...
- A low number of recent credit inquiries.
Conventional loan | Credit score: 620
To qualify for a conventional loan, you'll need a credit score of at least 620, though some lenders may choose to approve conventional mortgage applications only for borrowers with credit scores of 680 and up.
References
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- https://www.chime.com/blog/whats-a-good-credit-score-in-your-20s/
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- https://www.investopedia.com/what-credit-score-do-you-need-to-buy-a-car-5181034
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- https://www.lendingtree.com/home/mortgage/credit-score-needed-buy-house/
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- https://www.upstart.com/credit-score/718-credit-score
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- https://www.cnbc.com/2023/11/02/average-credit-score-by-age-in-the-us.html
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- https://www.rocketmoney.com/learn/debt-and-credit/what-is-the-average-credit-score-by-age
- https://www.investopedia.com/average-credit-scores-by-age-5214511
