Most financial institutions employ one of the most often used credit ratings available in the United States—the FICO score. Designed by Fair Isaac Corporation, its scale runs from 300 to 850. Usually, a FICO score higher than 700 is considered excellent credit. Still, how many people have FICO readings of 700 or above? Let us now have a look at some figures.
Based on preliminary data from the Consumer Financial Protection Bureau, 61% of customers have a FICO score range between 670 and 739 as of 2020. Although still within the excellent credit range, I would classify scores between 670 and 699 as being very poor; scores of 700 and 739 are higher within the good credit range. This indicates that somewhat more than 60 percent of individuals fell into the larger excellent credit range.
When it comes to the respondents with the scores above 700, the percentage is significantly lower. Predictably, the averages tend to be slightly above 50 percent, and the data indicates that 48 to 52 percent of consumers boast FICO scores of 700 or more. Hence, approximately 50% of people fall into that more tightly defined good credit bucket. The other half have fair credit, with credit scores below 700, with some of them having poor credit.
Furthermore providing some hints about the number of individuals with a credit score of 700 and higher is the way credit scores are distributed throughout the age groups. Generally speaking, those who are older may have greater credit than those who are younger or of the same age. Just 29 percent of customers between the ages of 18 and 24 have a FICO score higher than 700, according to recent Experian studies. For the 25 to 34-year age range, it climbs still to 43 percent. Furthermore above the 700+ PDI need is the rising number of 55 percent of the 35-44 age group. Furthermore, 67% of 45-54 year olds have a FICO score higher than 700. This implies that 700+ scores grow common as the population matures and individuals go through different phases of their lives. By middle age, indeed, more than half of the population is in the crucial excellent credit zone.
Income also fits well with good credit ratings. Higher-income customers are much more likely than lower-income consumers to have FICO scores greater than 700. For example, with around 80 percent of the population, credit ratings of those earning more than 100,000 dollars stand at 700 or higher. Of those earning 40,000 or less annually, just 37 percent have a FICO score of 700 or above. For many low-income households, the 700 credit score club therefore remains unreal. Changing salaries or job loss might make it challenging to make payments and thereby maintain a decent credit score.
Geographic location also contributes to the process. There are regions in the country that have better average credit ratings than others. Minnesota, New Hampshire, Vermont, North Dakota, and Massachusetts occupy five of the top six positions in terms of high-average statewide credit scores. Non-coastal states particularly those in the South and the West have lower average scores that equate to fewer numbers of 700+ FICOs. Thus, the geographic context determines the peer group against which one is benchmarked in assessing individual credit scores.
Gender also exhibits some differences. Traditionally, credit score data indicated that men usually scored higher than women on average. However, recent studies show that the gender gap has reduced and is almost nonexistent. Today, the percentage of males and females having FICO scores > 700 is practically the same. Despite this, disparities in access to and use of telehealth between other demographic cohorts remain wide.
To sum up, recent figures indicate that between 45 and 50 percent of the consumers in the US have FICO credit scores of 700 or higher. This shows that 50 percent is in good standing on their credits and that their financial status is sound. But it also means that half of all Americans have credit scores that fall below 670, which means they can only have fair or poor credit. With such scores ranging below 700, the chances of getting cheap credit products such as loans or credit cards are slim. Thus while more than 60 percent may have a more or less acceptable credit rating, only about 50 percent get the 700 FICO scores which provide the highest flexibility and the most favourable terms in lending. Young, low-income, and geographically disadvantaged groups of people have an even lesser likelihood of making the transition into the ‘good credit’ zone.
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