Summary: Your credit score can help you qualify for a mortgage, credit card, and car insurance. But how do you stack up against everyone else? Find out with these credit score statistics.
Statistics say most people have good credit scores. But what does that mean for you?
We’ve put together a list of the most important credit statics you need to know - because having the right information can help you make better decisions about your credit to improve your score.
Statistics for Credit Score Use In America
- 57% of Americans checked their credit score in the past 12 months, up 8% from four years ago. - Source
- 32% of low-income earners check their credit score, yet 59% of high-income earners check it at least once per year. - Source
- Only 13% of households with incomes of $75,000 or more plan to apply for credit in the next 12 months while 20% of households earning below $25,000 intend to apply for credit in the next 12 months. - Source
- In the last 10 years, the number of consumers with an 850 FICO Score went up 63%. - Source
- 1 in 3 adults use Credit Karma to access their free credit score. - Source
- 37% of consumers admit to having no idea how their credit score is determined. - Source
- When choosing between “credit” or “debit” when using their debit card, 42% believe opting for “credit” builds credit history and boosts your credit score (it doesn’t). - Source
- 33% of people have at least one account in collections, and over half were because of delinquent medical debt. - Source
- A perfect credit score is harder than you think - only 1.2% of Americans have a perfect FICO Score of 850. - Source
Did you know that 90% of lenders use FICO credit scores for underwriting decisions rather than the free scores you get from Credit Karma? Learn more.
Credit Score Tools And Strategies Stats
- Being added as an authorized user can improve your score up to 100 points or more in as little as two months. - Source
- Applying an authorized user strategy can help your credit score go from zero to 710 in just a few weeks. - Source
- It can take at least 30 to 60 days to see a change in your credit report when you’re added to a credit card account or tradeline. - Source
- At least 25% of low-income households don’t know how to raise their low credit scores. - Source
- 61% of consumers think income is a factor in determining their credit score (it isn’t). - Source
- 79% of consumers who check their credit history think their credit score is listed on their credit report. - Source
- The FICO Score model was introduced in 1989, almost 40 years after the first modern credit card was available. - Source and source.
- Customers of Self, a company focused on credit building, raised their credit score an average of 47 points. - Source
- 80% of residents using Rent Reporters to report their monthly rent as paid saw their credit jump an average of 23 points. - Source
- Using just 30% or less of your available credit can lower your credit utilization ratio and increase your credit score. - Source
- Stick with soft-credit checks if you can help it. Although the drop is temporary, hard inquiries can lower your credit score an average of five to ten points. - Source
- One missed payment can lower your credit score as much as 110 points or more. - Source
Low Credit Score?
Get a free consultation with a credit repair expert to see how much they can help your credit score.
It's quick, easy, and free.
Stats for Americans With No Credit Scores Or Thin Files
- Roughly 20% of people in the U.S. don’t have enough credit history to have a credit score. - Source
- 26 million American consumers - about 11% of adults - don’t have a credit history with a national credit bureau, making them credit invisible. - Source
- 8.3% of adults have a thin file that’s considered “unscorable because of insufficient or not having a recent. - Source
- Of 18 and 19 year olds, over 80% don’t have enough information in their credit file to generate a credit score. - Source
- 87% of consumers with thin-files increased their score with Experian Boost. - Source
- In low-income neighborhoods, 30% of consumers don’t have a credit score compared to just 4% in higher-income neighborhoods. - Source
- Black and Hispanic consumers are 6% more likely to not have a credit score compared to Whites and Asians. - Source
- 100% of renters using Rent Reporter went from no credit score to an upper nonprime or prime score. - Source
- An estimated 45 million Americans could be denied access to credit because of no credit score or a thin credit file. - Source
- Utility companies do not report accounts or payment history to any of the three major credit bureaus but, if you miss a payment, your account can be sent to collections and that will negatively impact your credit report. - Source
Understanding FICO Scores
Did you know lenders pull different FICO scores when you apply for a car loan vs a home loan? And yet another for credit cards? And the scores can vary (a LOT!) Learn more about your FICO credit scores in this guide.
"What Is An Average Credit Score?" Statistics
- The average credit score for men and women is 704, which is considered a good credit score according to FICO’s scoring model. - Source
- 40% of Americans have a FICO score that falls below 705. - Source
- The average FICO Score of a millennial has gone up 25 points since 2012. - Source
- In the past two years, 42 states have seen an increase in the average FICO Score. - Source
- Wisconsin residents saw the biggest jump with the average credit score going up seven points. - Source
- Michigan and Nevada have seen the largest increase in credit scores - a whopping 13 points on average - when looking at the last five years of data. - Source
- Your credit score is likely to increase with age. - Source
- 662: the average credit score for 20 to 29 year olds.
- 673: the average credit score for 30 to 39 year olds.
- 684: the average credit score for 40 to 49 year olds.
- 706: the average credit score for 50 to 59 year olds.
- 749: the average credit score for 60+ year olds.
- The state with the highest average credit score is Minnesota, coming in with a FICO Score of 733. It’s also the state with the lowest number of delinquent credit accounts. - Source
- First-time homebuyers in the U.S. have an average VantageScore of 684. - Source
- Want a car loan? The average borrower of a new-car loan had a credit score of 722, while borrowers taking out a loan for used cars had an average score of 655. - Source
Credit Reporting Stats
- VantageScore and FICO Scores are two common credit scoring models, yet 70% of people have never heard of VantageScore. - Source
- 26% of consumers find at least one significant error on their credit reports. - Source
- AnnualCreditReport.com gives you a free credit report from the three major credit bureaus but your report does not include your credit score. - Source
- An average of 123,000 people visit AnnualCreditReport.com every day. - Source
- Correcting an error on your credit report can raise your credit score, and over 40% of consumers who reported an error saw their score increase more than 20 points. - Source
- 14.8% of reported fraud is from identity theft, and credit card fraud is the #1 reported type. - Source
- Georgia, Florida, California, Nevada, and Texas have the most reported identity theft complaints in the U.S. - Source
- The three major credit bureaus track and report credit histories of more than 200 million consumers, yet 1 in 5 consumers - 40 million people - have mistakes on their credit report. - Source
Credit Repair Stats
- 77 million consumers owe an average of $5,178 on an account in collections. - Source
- About 9% of people with “good” FICO Scores are likely to miss a payment and become seriously delinquent at some point in their lives. - Source
- More than 1 million Americans have increased their credit scores with Experian Boost. - Source
- 48% of consumers who used a credit repair company saw their score go up 100 or more points. - Source
- Credit bureaus like TransUnion typically take 45 days to resolve disputes (if you give them the documentation they ask for). - Source
- The average cost of credit repair can range from $250 to $500, and 17% of people say it cost less than $250. - Source
- 67% of clients who use a credit repair company rate their experience as “Good” or “Excellent.” - Source
*Study found 48% of professional credit repair clients who stuck with their service for 6+ months saw an average of 100+ points to their credit score. Source.