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Your age is critical when it comes to certain money matters, such as saving for retirement or getting car insurance — younger adults have more time for compound interest to work its magic, and they and pay higher car insurance rates. But what about when it comes to your credit?
While credit scoring companies don’t consider ages when assigning scores, there is a correlation between age and score.
Here’s a look at the average credit scores by age, how age can help determine scores and how to judge whether your score is in a good place.
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There isn’t just one average credit score for every age because many different credit scoring models exist. These are the averages for the two most popular models, FICO 8 and VantageScore 3.0, according to the score providers.
Average FICO 8 score by age
Here’s the breakdown of FICO 8 scores by age range as of April 2023:
Age group
Average FICO 8 score
18-29
680
30-39
692
40-49
706
50-59
724
60+
753
Scores get progressively higher with each age group.
Average VantageScore 3.0 score by age
VantageScore 3.0 data from October 2023 is on par with FICO’s. Younger generations have lower average scores than older generations.
While FICO and VantageScore take different approaches to age groupings — one uses roughly 10-year age ranges while the other uses broader generational ranges — the average scores for specific ages are similar to one another. For example, the average score for a 25-year-old is 680 and 669, respectively — an 11 point difference.
What is the average credit score overall?
The average FICO 8 credit score is 717, as of October 2023. The average VantageScore 3.0 score is 700, as of October 2023. Only adults in the two oldest age groups have average scores above these numbers, but the other groups aren’t too far behind.
Does age affect your credit score?
Your credit scores are not directly impacted by how old you are. Credit scoring companies don’t include ages in their calculations. However, age can play an important role in shaping your scores.
How age can influence scores
The length of your credit history is one of the biggest factors that make up your credit scores. The longer an account has been open, the better, because it gives lenders more information to go off of when assessing risk. Theoretically, your credit scores should get higher as you get older because the age of your credit accounts increases each year. However, if you close an account — particularly one with a high credit limit or that you’ve had for a long time — it could set you back.
Younger adults are more likely to have thin credit files, meaning fewer accounts or credit types. Scoring models reward people with a mixture of revolving and installment credit. For example, having credit cards, an auto loan and a mortgage is better for your score than having only credit cards.
However, your record of paying bills on time and spending responsibly have a much stronger impact. Stumbles that drag down scores such as missing payments or having a high credit utilization ratio can happen to anyone, young or old.
What is a good credit score for your age?
You might consider your score to be good if it meets or exceeds the average for your peers, but that isn’t the best gauge. Following NerdWallet’s general guidelines, a good credit score is within the 690 to 719 range on the standard 300-850 scale, regardless of age.
Credit scoring companies have their own measures. FICO’s good range is 670-739 and VantageScore’s, which it labels “prime,” is 661-780. (Find the complete list of FICO and VantageScore categories below.) But a score that falls below these ranges is still good if it helps you do what you need or want to do, such as open a new credit card or rent the apartment you like.
FICO score ranges
Below 580: poor.
580 to 669: fair.
670 to 739: good.
740 to 799: very good.
800 and above: exceptional.
VantageScore ranges
300 to 600: subprime.
601 to 660: near prime.
661 to 780: prime.
781 to 850: superprime.
How to check your credit score
Checking your credit score yourself is free and will not lower your score. You can get a free credit score through NerdWallet — TransUnion VantageScore 3.0 — and many other financial websites. You might also find your credit score on your monthly bank statement or by logging in to your banking account.
Ways to build credit
It’s normal for credit scores to go up and down. A minor shift usually isn’t cause for alarm. But if your score drops into an undesirable range, there are strategies you can try to bump it:
Check your credit reports to learn what may be causing the drop in your score and dispute any errors with the credit bureaus.
Spend cautiously and pay your balances frequently to keep your credit utilization as low as possible. This might mean not waiting until your bill is due to pay off your balance but, instead, making payments every other week.
Set reminders or set up automatic payments on your credit accounts to ensure you pay bills on time.
Increase your credit limit. Try asking your existing credit card issuer to raise your limit or consider adding a new card to the mix.
Credit scores, while important, are just one part of your financial picture. Checking your broader financial health score on NerdWallet can give you a better understanding of your relationship with money.
Here's the average credit score by generation as of March 2024, per VantageScore CreditGauge data shared with CNBC Make It: Gen Z (18 to 27): 665. Millennials (28 to 43): 687. Gen X (44 to 59): 710.
Here's the average credit score by generation as of March 2024, per VantageScore CreditGauge data shared with CNBC Make It: Gen Z (18 to 27): 665. Millennials (28 to 43): 687. Gen X (44 to 59): 710.
Is NerdWallet accurate? The accuracy of the information displayed is entirely dependent on the accounts you link with NerdWallet. To see the most accurate information, connect all of your bank accounts, credit cards, loans, and your home value, where applicable.
How does NerdWallet get my free credit report and score? NerdWallet partners with TransUnion® to provide your TransUnion® credit report. Using the data in your credit report, it also provides your VantageScore® 3.0 credit score. Your score and credit report information are updated weekly.
For those who have never missed a payment and have been responsible with loan repayment, building the credit score from 500 to 700 will be simple. It may be difficult for people whose payments are routinely late and who lack discipline while making repayments to increase their credit score.
Baby boomers (ages 58 to 76) with 800-plus scores have an average utilization ratio of 6.3%, while all baby boomer cardholders have an average utilization ratio of 14.3%. The silent generation (ages 77 and older) with 800-plus scores have an average utilization ratio of 4.6%.
NerdWallet recommends the 50/30/20 budget, which suggests that 50% of your income goes toward needs, 30% toward wants and 20% toward savings and debt repayment. Monitor your credit, track your spending and see all of your finances together in a single place.
Consider whether your primary concern is tracking your finances or managing your credit score. Credit Karma is likely the best option for you if your primary concern is managing or improving your credit score. If your primary concern is budgeting and finance tracking, NerdWallet is likely the better choice.
What is the average credit score? The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.
However, with a 716 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.
Highlights: 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.
Heavy credit card use, a missed payment or a flurry of credit applications could account for a credit score drop. Amanda Barroso is a personal finance writer who joined NerdWallet in 2021, covering credit scoring.
For most people, increasing a credit score by 100 points in a month isn't going to happen. But if you pay your bills on time, eliminate your consumer debt, don't run large balances on your cards and maintain a mix of both consumer and secured borrowing, an increase in your credit could happen within months.
Generally speaking, you'll likely need a score of at least 620 — what's classified as a “fair” rating — to qualify with most lenders. With a Federal Housing Administration (FHA) loan, though, you might be able to get approved with a score as low as 500.
You can borrow $50,000 - $100,000+ with a 750 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.
Following NerdWallet's general guidelines, a good credit score is within the 690 to 719 range on the standard 300-850 scale, regardless of age. Credit scoring companies have their own measures. FICO's good range is 670-739 and VantageScore's, which it labels “prime,” is 661-780.
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.
Credit scores can drop due to a variety of reasons, including late or missed payments, changes to your credit utilization rate, a change in your credit mix, closing older accounts (which may shorten your length of credit history overall), or applying for new credit accounts.
The amount of time it takes to go from a 700 to 800 credit score could be as little as a few months to several years. While your financial habits and credit history will play a role in how long it takes, there are some factors that have specific timelines.
FAQ about paying off a car loan early and your credit
In the short term, paying off a debt and closing credit accounts can result in a drop in credit scores. But over time, it can improve a person's DTI ratio, which lenders may look at when considering your credit application.
So, given the fact that the average credit score for people in their 20s is 630 and a “good” credit score is typically around 700, it's safe to say a good credit score in your 20s is in the high 600s or low 700s.
Making on-time payments to creditors, keeping your credit utilization low, having a long credit history, maintaining a good mix of credit types, and occasionally applying for new credit lines are the factors that can get you into the 800 credit score club.
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