A credit score is a number that helps lenders understand how risky it might be to loan you money. It usually ranges from 300 to 850. A higher credit score means you're more likely to pay your bills on time. Lenders use it to decide whether to give you a credit card, loan, or mortgage.
The score is calculated using your credit history, which includes your payment history, total debt, how long you've had credit, and other factors. The most commonly used credit scoring models are FICO® and VantageScore.
As of 2024, the average credit score in the U.S. is 718, based on FICO data. This marks a slight increase from previous years and shows that consumers are, on average, doing a bit better with their finances.
Most Americans fall into one of six credit categories:
A score of 680 or above is considered a good credit score and can help you qualify for better loan terms and lower interest rates.
Credit scores by state vary widely. Some of the highest average credit scores in 2024 are:
States with the lowest average credit scores include:
These variations reflect differences in income, access to financial education, and borrowing trends.
Your age also plays a role in your score. Here are the average scores by age:
Younger people tend to have lower scores because their length of credit history is shorter, and they may have limited credit types.
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Your credit history shows how you’ve handled debt over time. It includes:
Lenders review this information to evaluate credit risk before making lending decisions.
Your credit report is a detailed summary of your credit behavior. It includes:
You can access your Experian credit report, along with those from TransUnion and Equifax, for free at AnnualCreditReport.com.
Credit bureaus collect your credit information and compile it into reports. The three major bureaus are:
Some credit card issuers report to all three; others may only report to one or two. That’s why your score may differ across reports. Learn more about Why my Credit Score is Different on Each Report.
Lenders use various credit scoring models. The two main ones are:
There are also different scoring models within each brand. Auto lenders may use one model, while mortgage lenders use another. These models may also calculate a higher score or a point lower depending on your behavior.
The average FICO score is 718. While FICO is the most trusted among lenders, both scores offer a similar snapshot of credit health.
Your average FICO score can change based on updates to your report, your credit utilization, and how regularly you’re making payments.
Credit utilization refers to the amount of credit you're using compared to the amount you have available. It’s a major scoring model factor. If your available credit is $10,000 and you're using $2,000, your utilization is 20%.
Keep your credit utilization ratio below 30% to avoid hurting your score. Below 10% is even better.
In 2024, average credit card debt hit a new high: $6,501 per person. That’s a jump from $5,910 in 2023. With interest rates above 20% on many cards, balances grow fast if not paid off monthly.
States with the highest credit card debt include:
Lowest debt levels are found in:
Paying your bills on time is one of the most important factors in maintaining a strong score. Your payment history makes up 35% of your FICO score.
To protect your score, set up auto-pay or reminders and avoid skipping payments.
Your credit limit is the maximum amount you can borrow on a credit card. Keeping your balance low in relation to your limit helps your score.
If you maintain good habits, your lender may increase your limit, giving you more available credit and lowering your utilization rate, both of which can lead to a higher credit score.
Auto loans and personal loans are installment debts that show up on your report. Having a mix of credit types—installment and revolving—is good for your credit mix, which makes up 10% of your score.
Managing these accounts responsibly helps prove you can handle different types of debt.
Lenders look at your score to assess credit risk. While the credit score is a key factor, they also consider:
The lower the risk, the better your loan terms. A better score could mean a full percentage point lower on your interest rate.
Nationwide data shows:
While these trends show growing financial pressure, many borrowers are also taking steps to rebuild credit or seek professional help.
Understanding the facts and figures about credit helps you take control of your financial future. Whether you’re just starting out or working to improve your score, staying informed makes all the difference.
For personalized help reviewing your credit or creating a debt payoff plan, reach out to a nonprofit counselor at Credit.org. Our team can help you manage credit card debt, dispute errors, and raise your score the right way.
