The Average Credit Score for Every Age (2024)

Chime® is a financial technology company, not a bank. Banking services, credit, and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

Looks like you’re looking for Chime.com

Chime® is a financial technology company, not a bank. Banking services, credit, and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

In this article

  1. What is a credit score?
  2. What is a good credit score?
  3. Average credit score by age
  4. Factors that affect credit scores
  5. Why is a good credit score important?
  6. How can you improve your credit score?
  7. Chime is here to help you build your credit
  8. Take responsibility for your credit score

An important aspect of your financial life in your 20s is building a good credit score. Learn more about good and bad credit scores and what to look out for.

Melanie Lockert • November 4, 2022

When you’re in your 20s, you’re just beginning your financial life.

This may mean getting your first big paycheck, applying for a new credit card, and managing your checking and savings accounts. Yet, another important aspect of your financial life in your 20s is building your credit and establishing a good credit score.

Your question now may be: What is a good credit score and why is this important? Read on to learn how a good credit score can help you when you’re in your 20s.

Chime® Credit Builder Secured Visa® Credit Card

A New Way to Build Credit
No Credit Check to Apply1
No Annual Fees

Learn More

The Average Credit Score for Every Age (2)

What is a credit score?

A credit score is a three-digit number that represents how creditworthy you are. In other words, this number tells lenders how likely you are to repay your loans and if you’re a responsible borrower.

There are many different types of credit scores but the most popular is the FICO credit score.The FICO®credit score rangeis from 300-850.The lower the score, the worse your credit is. If your credit score is high, your credit is in good shape.

View this post on Instagram

A post shared by Chime (@chime)

What is a good credit score?

Now that we’ve reviewed credit score basics, your next question may be: What constitutes a good credit score? According to credit bureauExperian, a good credit score is 700 or above.

But if you’re in your 20s and just starting out, a score of 700 or higher may be tough as you’re just establishing your credit history. In fact, according toCredit Karma, the average credit score for 18-24 year-olds is 630 and the average credit score for 25-30 year-olds is 628.

FICO has different categorizations for credit scores anda 630 is deemed as “fair”. A “good” credit score based on FICO’s criteria is 670-739, a “very good” score is 740-799 and an “exceptional” score is 800-850.

So, given the fact that the average credit score for people in their 20s is 630 and a “good” credit score is typically around 700, it’s safe to say a good credit score in your 20s is in the high 600s or low 700s.

Keep in mind that when you’re in your 20s, you’re still establishing your credit history and your credit score takes into account the length of your credit history. Only time can help that part, so if you maintain good financial habits, the hope is that your score will elevate as you get older.

Average credit score by age

Your credit scores can differ drastically by age and the stage of life you’re in. Many factors such as your credit history and experience with credit will determine what your average credit score should be.

In general, when you’re in your 20s your credit score will be on the lower end because you’re just starting out. In your 30s your credit should start seeing some upward movement as you’ve now had more time to build upon the credit you opened in your 20s. After your 30s your credit should continue to rise.

According to Experian, the average credit score by age in 2021 was:

  • Age 76+: 760
  • Age 57-75: 740
  • Age 41-56: 705
  • Age 25-40: 686
  • Age 18-24: 679

Factors that affect credit scores

While age is not a factor in calculating your credit score, length of credit history is. The longer you have a line of credit open, the better it is for your credit score (just as long as you made on-time payments).

The five main factors that help to determine a person’s FICO credit score include:

  • 35% of your score is based on payment history
  • 30% is based on your amounts owed
  • 15% is based on the length of your credit history
  • 10% is based on inquiries for new credit
  • 10% is based on the types of credit you’re using (i.e. loans and credit cards)

Why is a good credit score important?

Let’s be real, your credit score can seem pretty arbitrary. But it’s nonetheless important when it comes to getting your first apartment or applying for your first credit card.

Why is this? Because your credit score can make or break whether you get approved for an apartment. It can also determine whether you get approved or denied for a credit card. It can even affect the interest rate you get. This is crucial to understand because, if you take out a loan, interest can cost you a lot of money over time. Even the difference between a few percentage points can potentiallycost you hundreds or thousands of dollarsin interest.

So, having a good credit score canhelp you save money,and help you get better interest rates.

How can you improve your credit score?

What if you don’t have a good credit score quite yet? Or, perhaps you want to maintain your good credit and keep it in good standing?

There are a few simple rules to live by to boost your credit. Take a look:

  • The most important rule is to make all your payments on time. Your payment history determines35 percent of your credit score, so it has the biggest impact.
  • The second rule of thumb is to make sureyour credit utilizationmakes up30 percent of your score– or less. Your credit utilization is how much of your total credit you use. Maxing out your cards each month can signal the alarms for lenders and make you look like a risk.
  • Lastly, try not to open too many new lines of credit. Doing so in a short period of time can look risky to lenders and lower your credit score.

Chime is here to help you build your credit

Another great way to build your credit is withChime’s Credit Builder Credit Card.Chime’s Credit Builder is a no fee, 0% APR secured credit card that helps you build your credit. Each month, Chime reports payments to themajor credit bureaus so everyday purchases like gas, groceries, bills, and subscriptions can all count towards your credit score. There are no fees, no credit check, and no minimum security deposit required to apply!

Take responsibility for your credit score

As you can see, taking action and being responsible in your 20s can help you build your credit over time. So, refer back to this guide and start improving your credit score now. And, just think: This will help you land that apartment, buy a new car, or get your firstrewards credit card.

Are you ready to improve your credit score in your 20s and start adulting?

Related Posts

The Average Credit Score for Every Age (3)

Credit

How Often Does Your Credit Score Update?

The Average Credit Score for Every Age (4)

Credit

What Is a Credit Score?

The Average Credit Score for Every Age (5)

Credit

Why Are Credit Scores So Important?

The Average Credit Score for Every Age (6)

Credit

What is a Good Credit Score to Buy A Car?

The Average Credit Score for Every Age (7)

Chime Community

Now you can track your FICO® Score in the Chime app, for free!

The Average Credit Score for Every Age (8)

Credit

Credit Score Ranges: Where Do You Stand?

The Average Credit Score for Every Age (9)

Credit

Credit Utilization Rate Explained

The Average Credit Score for Every Age (10)

Credit

A 3-Minute Guide to Understanding Credit Scores

The Average Credit Score for Every Age (11)

Credit

When Is the Best (And Worst) Time to Apply For Credit Cards?

Was this helpful?

Did you like the post or would you like to give some feedback? Let us know your opinion by clicking one of the buttons below!

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thanks for your feedback! 👍

Melanie Lockert

Melanie Lockert is the founder of the blog and author of the book, Dear Debt. Her work has appeared on Business Insider, Time, Huffington Post and more. She is also the co-founder of the Lola Retreat, which helps bold women face their fears, own their dreams and figure out a plan to be in control of their finances.

This guide is for informational purposes only. Chime does not provide financial, legal, or tax advice. You should check with your legal, financial, or tax advisor for advice specific to your situation. Your state or local unemployment agency is responsible for making all determinations on your eligibility for unemployment benefits. Please contact your state or local unemployment agency if you have questions.

Chime® is a financial technology company, not a bank. Banking services are provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. The Chime Visa® Debit Card and the Chime Credit Builder Visa® Credit Card are issued by The Bancorp Bank, N.A. or Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit and credit cards are accepted. Please see the back of your Card for its issuing bank.

While Chime doesn’t issue personal checkbooks to write checks, Chime Checkbook gives you the freedom to send checks to anyone, anytime, from anywhere. See your issuing bank’s Deposit Account Agreement for full Chime Checkbook details.

By clicking on some of the links above, you will leave the Chime website and be directed to a third-party website. The privacy practices of those third parties may differ from those of Chime. We recommend you review the privacy statements of those third party websites, as Chime is not responsible for those third parties' privacy or security practices.

Third-party trademarks referenced for informational purposes only; no endorsem*nts implied.

Opinions, advice, services, or other information or content expressed or contributed here by customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of The Bancorp Bank, N.A. and Stride Bank, N.A. (“Banks”). Banks are not responsible for the accuracy of any content provided by author(s) or contributor(s).

To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

Address: 101 California Street, Floor 5, San Francisco, CA 94111, United States.

No customer support available at HQ. Customer support details available on the website.

© 2013-2024 Chime Financial, Inc. All rights reserved.

The Average Credit Score for Every Age (2024)

FAQs

The Average Credit Score for Every Age? ›

Here's the average credit score by generation as of the second quarter of 2023, according to Experian: Gen Z (18 to 26): 680. Millennials (27 to 42): 690. Gen X (43 to 58): 709.

What is an average credit score by age? ›

Here's the average credit score by generation as of the second quarter of 2023, according to Experian: Gen Z (18 to 26): 680. Millennials (27 to 42): 690. Gen X (43 to 58): 709.

What age group has 800 credit score? ›

Baby boomers (ages 58 to 76) with 800-plus scores have an average utilization ratio of 6.3%, while all baby boomer cardholders have an average utilization ratio of 14.3%. The silent generation (ages 77 and older) with 800-plus scores have an average utilization ratio of 4.6%.

How rare is a 800 credit score? ›

How rare is an 800 credit score? An 800 credit score is not as rare as most people think, considering that roughly 23% of adults have a credit score in the 800-850 range, according to data from FICO. A score in this range allows consumers to access the best credit card offers and loans with the most favorable terms.

Is a 700 credit score good for a 20 year old? ›

So, given the fact that the average credit score for people in their 20s is 630 and a “good” credit score is typically around 700, it's safe to say a good credit score in your 20s is in the high 600s or low 700s.

Does Gen Z have good credit? ›

A breakdown of younger generation credit scores

Millennials and Gen Zers, however, average lower credit scores. Millennials average a credit score of 690, and Gen Zers come in at 680. For reference, the qualifying credit score for most conventional home loans is 620, according to Rocket Mortgage.

How long does it take to build a 700 credit score? ›

The time it takes to raise your credit score from 500 to 700 can vary widely depending on your individual financial situation. On average, it may take anywhere from 12 to 24 months of responsible credit management, including timely payments and reducing debt, to see a significant improvement in your credit score.

How long does it take to get 750 credit score? ›

Improving your credit score from 695 to 750 could take several months to a year or more, depending on your specific situation and how diligently you work on improving your credit habits. It's essential to be patient and consistent in your efforts.

Does a 750 vs 800 credit score matter? ›

This is because only 1% of these individuals will become delinquent on their loans in the future. While credit scores of 800 or above are labeled “exceptional,” a score of 750 will likely get you some of the best rates available for auto loans and mortgages.

What is a good credit score to buy a car? ›

A target credit score of 661 or above should get you a new-car loan with an annual percentage rate of around 7.01% or better, or a used-car loan around 9.73% or lower. Superprime: 781-850.

How many Americans have bad credit? ›

Around 33% of Americans have a bad FICO credit score (between 300-620). In 2021, the average credit score in the United States was 711, with around 16% of adults having a credit score lower than 579.

What credit score do most 19 year olds have? ›

Given that the average credit score for people aged 18 to 25 is 679, a score between 679 and 687 (the average for people aged 26 to 41) could be considered “good”.

What is a good credit score to buy a house? ›

It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly mortgage payments.

What is a perfect FICO score? ›

A perfect credit score of 850 is hard to get, but an excellent credit score is more achievable. If you want to get the best credit cards, mortgages and competitive loan rates — which can save you money over time — excellent credit can help you qualify. “Excellent” is the highest tier of credit scores you can have.

Can you buy a house with 800 credit score? ›

Can I buy a house with an 800 credit score? Yes. An 800 credit score is considered “exceptional” by FICO and is in the highest tier of scores.

What is a good credit score at my age? ›

Average Credit Scores FAQs

Consider yourself in “good” shape if your credit score is above the average for people in your age group. Given that the average credit score for people aged 18 to 25 is 679, a score between 679 and 687 (the average for people aged 26 to 41) could be considered “good”.

Is 700 a good credit score for a 25 year old? ›

Anywhere between 670 to 739 is considered good. A credit score between 740 to 799 is considered very good. Credit scores 800 and up are considered excellent. Someone with a VantageScore that's 600 or less is considered to have poor or very poor credit.

Is 700 a good credit score for a 24 year old? ›

For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2022, the average FICO® Score in the U.S. reached 714.

How many people have 800 credit score? ›

According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.

Top Articles
Latest Posts
Article information

Author: Stevie Stamm

Last Updated:

Views: 6476

Rating: 5 / 5 (80 voted)

Reviews: 87% of readers found this page helpful

Author information

Name: Stevie Stamm

Birthday: 1996-06-22

Address: Apt. 419 4200 Sipes Estate, East Delmerview, WY 05617

Phone: +342332224300

Job: Future Advertising Analyst

Hobby: Leather crafting, Puzzles, Leather crafting, scrapbook, Urban exploration, Cabaret, Skateboarding

Introduction: My name is Stevie Stamm, I am a colorful, sparkling, splendid, vast, open, hilarious, tender person who loves writing and wants to share my knowledge and understanding with you.