- The average credit score in the US is 717, according to a report from Experian.
- High interest rates and lingering inflation contribute to more missed payments and debt levels.
- Minnesota has the highest average credit score at 742, while Mississippi has the lowest average at 680.
People with higher credit scores tend to qualify for better interest rates on borrowed money, have access to the recession. This extended period of growth yielded low unemployment rates. This could have contributed to America's rising credit scores, with more people possessing the means to pay back debt on time.
If your own score isn't rising, there is plenty of information available on the credit industry and how to raise your credit score. There is also an abundance of credit-builder products available that widen accessibility, boosting the average credit score over time. The dispute your credit report with the agency.
Factors influencing the average credit score
Payment history
This is the most important factor and has the biggest impact on your score. A positive payment history is best; even one late or missed payment can negatively impact your score. Be sure to make all payments on time.
Credit utilization
This is the amount of your available credit that you're using. Keeping your available credit high and your debts low can help your score.
Credit mix
This refers to your different loan accounts, such as credit cards, mortgages, student loans, and car loans. Being able to handle a mix of different credit accounts can positively impact your credit score.
Length of credit history
The length of time you've had credit can also impact your score. The longer you have had positive credit history the better it is for your score.
How to strengthen your credit score
Your credit scores play a big role in your financial freedom. They figure into everything from qualifying for a mortgage or credit card to the rate you pay on your auto insurance. Bad credit can make your life difficult. But there are always things you can do to best credit monitoring services are even free.
FAQs
What is the largest determining factor in credit scores?
The largest determining factor in credit scores is your payment history. Making your payments on time every month is the single most important thing you can do.
What is considered a good credit score?
A good credit score typically ranges from 670 to 739.
What lowers a credit score?
A late payment lowers your credit score. Just one late payment can make a big difference.
How does my credit score compare to the national average?
The average American credit score is 717, according to FICO. This is considered good credit. If your score is less than 717, or lower than good credit, it's lower than the national average. If it's higher than 717, your score is higher than most Americans'.
