Based on FICO score data, payment processing company Shift calculated that the median credit score across all Americans was 703 in 2019. That's within close range of the 701 average for Hispanic consumers. Blacks, however, registered an average credit score of just 677.
Numerous studies have found racial disparities in credit scoring: 1996 study found African-Americans were three times as likely to have FICO scores below 620 as whites and that Hispanics were twice as likely. 1997 study found Black Indigenous and people of color [BIPOC] neighborhood consumers had lower credit scores.
You're not alone. FICO reported that about 15.5% of consumers had FICO scores below 600, a drop from the year before. People in that credit score range likely have a hard time qualifying for credit and pay higher interest rates or have to put down deposits.
Percentage of consumers with poor credit by race/ethnicity
Black and Hispanic whites have the lowest average scores. You may also be surprised to learn that average credit scores don't only vary by race/ethnicity.
Seventy percent of white adults said they own a credit or charge card, compared to 56 percent of black adults.
Credit cards are disproportionately prevalent among those with higher levels of income, those with more education, and among non-Hispanic white adults (table 17). For example, 83 percent of white adults have at least one credit card, compared to 63 percent of black adults who have one.
FICO® score ranges vary — they can range from 300 to 850 or 250 to 900, depending on the scoring model — but higher scores can indicate that you may be less risky to lenders.
Your FICO® Score falls within a range, from 740 to 799, that may be considered Very Good. A 750 FICO® Score is above the average credit score. Borrowers with scores in the Very Good range typically qualify for lenders' better interest rates and product offers.
Credit scores are three-digit numbers that show an important piece of your financial history. Credit scores help lenders decide whether to grant you credit. The average credit score in the United States is 698, based on VantageScore® data from February 2021.
The base FICO® Scores range from 300 to 850, and FICO defines the "good" range as 670 to 739. FICO®'s industry-specific credit scores have a different range—250 to 900. However, the middle categories have the same groupings and a "good" industry-specific FICO® Score is still 670 to 739.
While credit scores can differ, the average score for 25 year old's is around 660. According to the FICO scoring model, a 660 is considered "fair." So what does that mean? While you can still qualify for loans & lines of credit, a fair credit score might leave you with fewer options.
Having an 850 credit score means that lenders will offer you all the best rates on loans, credit cards, and other types of credit. This will end up saving you lots of money when you open accounts because you'll be able to take advantage of the low interest rates and other financial benefits of a good credit score.
Starting with no credit score doesn't mean your score is zero. Rather, your score simply doesn't exist. That's because your credit score is calculated only at the moment that a lender, credit card issuer or other entity requests it to check your creditworthiness.
Insurance credit scoring is unfair because it penalizes consumers for rational behavior. For example, if you shop around for insurance, each insurance company will check your credit and increase the number of inquiries on your credit report which hurts your score.
A 700 credit score meets the minimum requirements for most mortgage lenders, so it's possible to purchase a house when you're in that range. However, lenders look at more than just your credit score to determine your eligibility, so having a 700 credit score won't guarantee approval.
The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus. This means a couple of things: The scores we provide are actual credit scores pulled from two of the major consumer credit bureaus, not just estimates of your credit rating.
Experts say you need a minimum credit score of 620 to be approved for a conventional mortgage loan. As a result, a credit score of 790 should make a mortgage approval highly likely.
An 867 credit score is excellent.
A 740 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.
A conventional loan requires a credit score of at least 620, but it's ideal to have a score of 740 or above, which could allow you to make a lower down payment, get a more attractive interest rate and save on private mortgage insurance.
When including authorized users, the average age Americans received their first credit card was 20. The majority -- 54.3% -- obtained their first credit card between the ages of 18 and 20, while just over 4% were younger than 18. Another 30% got their first credit card between the ages of 21 and 24.
Many Millennials Are Getting Rejected for Credit Cards
Millennials also have the lowest average credit score compared to other generations--28.1% of them have scores below 579. They also have the shortest credit history, which makes sense given their age. These two factors make it harder for them to get a credit card.
Adults 75 or older have the highest average credit card debt at $8,100, but just 28% of people in this age group have debt. Meanwhile, 52% of Americans 45–54 years old have credit card debt, making them the age group most likely to carry it.