Americans’ credit scores are improving, particularly among millennials. The average FICO score in the U.S. surged to a record of 703 in 2019, Experian reported in a new analysis. The share of Americans who had FICO scores above 700 increased to 59%, the highest on record. “Millennials ages 24 to 39 now outnumber baby boomers and are finally hitting their credit stride,” according to the Experian report. “Their economic emergence is reflected by a 25-point increase in their average FICO score since 2012—the biggest increase of any generation.”
FICO scores above 700 are considered the “marker of good credit by many lenders,” according to the report. That could position a borrower to be eligible for the best mortgage rates. The percentage of Americans with an 850 FICO score has increased 63% in the past decade, according to the report. About 1.2% of Americans have a perfect FICO score of 850. “Americans are making better credit decisions,” Shannon Lois, Experian’s head of analytics, consulting, and operations, told HousingWire. “Which is an indication of consumers being more educated about their credit.”
FICO scores range from 300 (considered “very poor”) to 850 (considered “excellent”).
The five states with the highest credit scores are:
- Minnesota (average of 733)
- North Dakota (727)
- South Dakota (727)
- Vermont (726)
- Wisconsin (725)
On the other hand, the states with the lowest average credit scores are Mississippi (667) and Louisiana (677), CNBC reports.
Source: “Average FICO Score Reaches Record High, Experian Says,” HousingWire (Feb. 28, 2020) and “Average FICO Score Hits Record High—Here’s the Average Credit Score in Every State,” CNBC (Feb. 10, 2020)
