How Does Your Credit Score Stack Up?
Your three-digit FICO credit score is a key number. Lenders of all types, including those offering mortgage, auto, student, and personal loans, rely on your credit score to determine if you qualify for loans and at what interest rate.
The higher your credit score, the more likely you are to qualify for a mortgage or credit card with a lower interest rate, something that makes borrowing money less expensive.
FICO scores range from 300 to 850. Most lenders consider scores of 740 to 799 to be “very good” and those of 800 or higher to be “exceptional.”
Americans have strong credit scores — on average
How are Americans doing when it comes to building strong credit scores? Pretty good.
National credit bureau Experian reported that the average credit score among U.S. residents with scores stood at 715 as of the end of 2024. That is unchanged from the same average that U.S. residents boasted in the third quarter of 2023.
That score falls in the range of 670 to 739 that FICO considers to be “good.”
Experian also found that 71.2% of U.S. consumers have a “good” or better credit score, meaning that their FICO score is at least 670.
Average credit scores do vary by age
Experian reported that members of Gen Z had an average credit score of 681 as of the end of 2024, while that score stood at 691 for millennials and 709 for members of Generation X. Baby boomers had an average score of 746, while members of the Silent Generation had an average score of 760.
The Experian study found that consumers who keep their credit card balances low tend to have higher credit scores. This isn’t surprising: FICO counts credit-utilization ratio, the amount of available credit a consumer is using, as a major factor in determining credit scores.
According to Experian, consumers with “poor” credit scores ranging from 300 to 579 are using on average 91% of their available credit. Those with “fair” credit scores of 580 to 669 are using an average of 61%.
Consumers with “very good” scores of 740 to 799, though, use on average just 15% of their available credit, while those with “exceptional” scores of 800 or higher use an average of 7% of their available credit.
You can build a better credit score
If your credit score is low and you want to improve it, you can take two big steps to build a stronger one.
First is to pay your monthly revolving debts on time every month. This includes your monthly mortgage, auto, student and personal loan payments. It also includes your minimum monthly credit card payment. Make these payments on time each month, and your credit score will gradually rise.
Second, pay off as much of your credit card debt as you can. This will lower your credit-utilization ratio and provide another boost to your credit score.
Focusing on these two steps can help you achieve the U.S. average FICO credit score of 715, which is considered “good.” Or you can continue to work toward an even higher score. Either way, the better your credit score, the lower the interest rate you will qualify for and the less money you’ll pay for mortgages and loans.
