Study: The average American has a good credit score
- Federal Reserve Bank of St. Louis: Credit card debt hits $1 trillion in US
- Based on the FICO score model, the average credit score in the US is 714
- Credit scores vary by age and location
maylen
(NewsNation) — According to the finance website WalletHub, the average American has a good credit score.
In a study released Thursday, WalletHub determined the average credit score among Americans based on the VantageScore model is 696. When looking at the FICO score model, it’s 714.
The average FICO credit score increased by 27 points from 2010 to 2022. It stayed the same from 2021 to 2022, data shows.
Credit scores vary by age and location. Per WalletHub, older people tend to have the highest average credit scores with scores declining the younger the age group.
Why? WalletHub says people tend to grow more financially responsible and secure as they age. Old age also comes with more recovery time to fix financial mistakes. The length of someone’s credit history also accounts for a part of their score.
By location, the Northeast region has the best average credit score at 714 followed by the West, Midwest, Southeast and Southwest. Out of the largest 50 cities in the U.S., San Francisco holds the highest average credit score of 733. Colorado Springs has the lowest average score at 498. The national average sits between the two at 696.
Reporting of the new average credit score comes as the Federal Reserve Bank of St. Louis said credit card debt in the U.S. has reached $1 trillion.
