How rare is 825 credit score?

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.

How rare is an 800 credit score?

According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.

How long does it take to get an 800 credit score?

The longer you've been using credit, the more it means to your credit score. Members of the 800 Club average just under 22 years of using credit. Even the youngest ones, Millennials, average more than 14 years.

How rare is a 900 credit score?

It's exceedingly rare for anyone to have a credit score over 900, as most credit scoring models have a maximum limit of 850, and even achieving that score is uncommon.

Does 900 credit score exist?

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.

What is the average US credit score?

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.

What is a good credit score to buy a house?

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.

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.

Why is it so hard to get a 800 credit score?

It might also be hard to achieve an 800 credit score until you have a mix of credit under your name . We're not saying you should take out a mortgage or a car loan just to get your credit score over 800, but if the only credit accounts on your file are credit cards, you might struggle to reach that 800 credit score.

What credit score is needed to buy a car?

The credit score required and other eligibility factors for buying a car vary by lender and loan terms. Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.

What is a good credit score to buy a car?

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.

Is a 700 credit score good for a 20 year old?

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 .

What is a normal FICO score?

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.

Average Credit Scores by Age, State, and Income (2024)

7 Min Read | December 21, 2022

Average credit scores tend to change based on age, state, and income. But none of these are actually used to calculate your score. Good credit habits matter most.

This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.

At-A-Glance

Factors like your age, state, and income level don’t actually affect your credit score.

Yet there are correlations between average credit score and age, state, and how much you make.

For example, the older the age group, the higher the average credit score. Credit score averages tend to rise with income levels, too.

The average FICO (Fair Isaac Corporation) credit score for Americans rose to 716 in April 2021 and held steady at that number as of April 2022, having risen steadily since 2013.¹ By most lending standards, 716 is considered a “good” credit score. And anyone at any age, location, or income level can build a good – or even excellent – credit score. Yet not all age groups, states, or income levels tend to have the same average scores.

So when, where, and why do credit scores tend to flourish? Let’s explore average FICO credit scores by age, state, and income level to find out.

Average Credit Score by Age

In a way, FICO does pay attention to age when it comes to calculating yourcredit score, but not the way you might expect. The average length of your credit history is what matters, not how many times you’ve revolved around the sun. In other words, your age is generally not a great indicator of credit score, and it’s entirely possible for a young person to have a high score and an older person to have a low score.

Still, average credit scores tend to increase with age. In 2021, people aged 18 to 24 averaged 679, while those 76 and up had an average credit score of 760.²

Average Credit Score by Age, Second Quarter 2021²

Age	Average FICO Score
18-24	679
25-40	686
41-56	705
57-75	740
76+	760

If age isn’t factored into credit score, why the upward trend? For one, we have to earn our credit scores, which takes time. A younger person is more likely to have a lower credit score than an older person simply because they have shorter payment and credit histories than their older counterparts. Consider how age plays a role in relation to the five variables used to calculate a FICO score and their relative weighting in FICO’s scoring model:

35% Payment History: Older accounts have made more payments, increasing their scores if those payments were consistently on time or decreasing them if too many were made late. The older you are, the longer the account history it’s possible to have.
30% Credit Utilization Ratio: As we age, our income tends to grow. And income can affect how high a credit limit we receive. The lower your credit utilization ratio – how much of your total available credit limit is in use – the greater the chance it will positively affect your credit score.
15% Length of Credit History: Account age increases over time, and as long as you keep your oldest accounts open, they’ll be calculated into your average account age.
10% Credit Mix: Credit scorers like to see that you can responsibly handle various types of debt. As you age, you’ll likely have more opportunities to open different types of accounts. An 18-year-old might only have a credit card account, while a 40-year-old might have a car loan, mortgage, personal loan, and several credit cards.
10% Recent Inquiries and Newly Opened Accounts: Any time you open a new account, you’ll see a ding in your credit score. This is because the lender makes a hard inquiry into your account. A hard inquiry will stop affecting your credit score in a year. If you’re older and already have all of your desired accounts established, you may be less likely to incur hard inquiries that lower your score.

All of the above add up to boost your credit score over time, given you are consistently paying off debts – which leads us to another reason why average credit scores tend to increase with age: financial responsibility. As people get older, they generally mature and become more responsible with their money. Plus, the more time that passes, the more time you have to recover from credit mistakes. Many negative credit items will stop affecting your credit score within seven years – as long as you maintain good credit habits.

Average Credit Score by State

According to FICO data from April 2021, 31 states and Washington, D.C., had average credit scores that ranked higher than the national average of 716.³ The same data found states in the Midwest and New England generally had the highest average credit scores.

10 States with Highest Average Credit Scores³

State	Average FICO Score
Minnesota	742
Vermont	738
Wisconsin	736
North Dakota	736
Massachusetts	735
New Hampshire	735
South Dakota	735
Washington	734
Hawaii	733
Nebraska	733

Meanwhile, a WalletHub analysis found the average credit score in the South was lower than the rest of the U.S. – 702 in the Southeast and 696 in the Southwest – while the average credit score for Mississippi residents, the state with the lowest average credit score, was 681.⁴

Since where you live is never considered when calculating your credit score, why some states have higher average credit scores than others comes down to other common characteristics that can influence scores, according to several experts interviewed in the WalletHub analysis. Factors like demographics, unemployment rates, poverty levels, education, and income can all contribute to one’s ability to build a high credit score.

Average Credit Score by Income

Your income isn’t factored into your credit score calculation, either, but a November 2020 analysis from the Federal Reserve Bank of New York found the higher the income level, the higher the average credit score.⁵ That corroborated a 2018 Federal Reserve study that found how much you earn may have a “moderate correlation” to your credit score.⁶ The chart below shows results of the New York Fed’s analysis, which defined its income tiers in relation to U.S. median household income, with “low income” being less than 80% of the median income for the nearest metropolitan area. The national average median household income for 2021 was $70,784, according to the Federal Reserve Bank of St. Louis.⁷

Average Credit Score by Income⁵

Annual Income	Average Credit Score
Low Income	658
Moderate Income	692
Middle Income	735
High Income	774

Like age and location, income bears no direct impact on your credit score, but the two factors still seem to be related. Why? One possible reason is that lower income may result in a lower ability to pay debts consistently, while higher income may result in a stronger payment history. Of course, this varies according to personal expenses and total levels of debt. But someone with a $100,000 salary may be more able to pay back $15,000 in credit card debt than someone with a $30,000 salary.

Credit utilization ratio also plays a factor here. Credit card issuers might look at your income when determining your credit limit, so the higher your income, the more likely you’ll be approved for a higher credit limit. When you have a high credit limit, it can be easier to keep your credit utilization ratio under 30%, which can positively affect your credit score.

Still, it’s important to remember that despite the correlation between average credit score and income, you don’t need to earn a lot in order to build an excellent credit score. Financial responsibility takes precedence. So as long as you spend mindfully – and always pay your bills on time – you are more likely to establish and maintain great credit.

The Takeaway

Average credit scores tend to vary by age, state, and income, yet none of these factors are used to help calculate your credit score. Age and income, however, can indirectly affect your ability to satisfy the five factors used to determine your credit score. Meanwhile, demographic information like education level and average income can impact average credit scores from state to state. All things considered, with good financial practices, anyone can build an excellent credit score, regardless of their age, salary, or where they live.

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Greetings, I'm Tony Azzara, a seasoned business technology writer and researcher based in Queens, NY, with a profound focus on financial services technology. My expertise lies in unraveling the intricacies of credit scores, financial habits, and their dynamic relationships with age, state, and income levels.

Now, let's delve into the key concepts presented in the article titled "Average Credit Scores by Age, State, and Income" to shed light on the intricate dynamics of credit scoring.

1. Credit Score Determinants:

The article underscores that age, state of residence, and income do not directly influence credit scores. Instead, good credit habits are paramount in shaping creditworthiness.
It emphasizes that the average FICO credit score for Americans was 716 in April 2022, considered "good" by most lending standards.

2. Average Credit Score by Age:

Although age itself doesn't factor into credit scores, the average score tends to increase with age. This is attributed to the cumulative effects of a longer credit history, financial responsibility, and the ability to recover from credit mistakes over time.
The breakdown of average FICO scores by age groups in 2021 is provided, ranging from 679 for those aged 18-24 to 760 for individuals aged 76 and above.

3. Average Credit Score by State:

State of residence doesn't directly impact credit scores, yet there are regional variations. States in the Midwest and New England generally boast higher average credit scores.
The article provides the top 10 states with the highest average credit scores, including Minnesota, Vermont, and Wisconsin.

4. Factors Influencing State-wise Differences:

Demographics, unemployment rates, poverty levels, education, and income are cited as factors influencing state-wise differences in average credit scores.

5. Average Credit Score by Income:

Income itself is not a direct factor in credit score calculation, but there is a correlation between higher income levels and higher average credit scores.
A breakdown of average credit scores by income tiers is provided, ranging from 658 for low income to 774 for high income.

6. Correlation Between Income and Credit Score:

The article suggests that higher income levels may correlate with a stronger payment history and a higher credit limit, positively affecting credit utilization ratios.

7. Financial Responsibility and Credit Scores:

Regardless of age, salary, or location, the article emphasizes that good financial practices and responsible credit behavior are fundamental to building an excellent credit score.

8. Conclusion:

The overarching message is that while average credit scores vary based on age, state, and income, these factors are not directly used in credit score calculations. Instead, it's individual financial habits and responsibility that play a pivotal role in creditworthiness.

In conclusion, understanding the nuances of credit scoring and the factors influencing it empowers individuals to make informed financial decisions, fostering a path towards a robust credit profile.