A credit score is a paramount factor in measuring your financial reliability, and it influences almost everything ranging from lending to interest rates. The most common range of scores is between 300 and 850. But what is meant by an average or a good credit score? That is why the answer often depends on the age of the person. Below is a general look at how the average credit score is determined based on age.
Credit Score Distribution by Age Group: Age 18-24
People within this age bracket for instance are new to credit and hence they cannot even provide the credit reference score that lenders use. Therefore, ordinary credit scores are lower in the specified age range. According to research, the average credit score for those aged 18-24 is: According to research, the average credit score for those aged 18-24 is:
- 625 for 18-year-olds
- 637 for 19-year-olds
- 648 for 20-24-year-olds
New traders need to understand how to establish credit-worthy habits. Paying bills before the due date, keeping credit utilization low, and allowing credit accounts to grow old as well can easily boost the scores of young people.
Average Total Credit Scores by Age Range for 25-34-Year-Olds
Average credit scores rise as one approaches their late twenties and early thirties. Experian data shows that the average score for 25-34 year olds is: Experian data shows that the average score for 25-34 year olds is:
668
It is by this age that most people must have signed at least one or two credit accounts and ideally, have been maintaining a good credit score for several years. However, those young people who fall within this age bracket may still be struggling to start repaying their bills, managing their finances, and using credit appropriately.
Credit rating for people between the ages of 35-44 years
Credit scores are at their most noteworthy between the ages of 35-44 for a long time. By this organization, everybody ought to have been making credit for at slightest ten a long time and have an assortment of credit items in their reports such as credit cards, auto advances, and contracts among others. Agreeing to Experian, the normal credit score for those matured 35-44 is: Concurring to Experian, the normal credit score for those matured 35-44 is:
690
This makes it the optimum time to apply for loans as well as other credit facilities with the best rates before the score starts to steadily drop with age.
Credit scores of those between 45 and 54 years of age
Data also shows that, after one reaches forty-four years of age, their average credit score begins to steadily drop. The average score of people between 45 and 54 is: The average score of people between 45 and 54 is:
683
People often have greater credit limits and credit card use that might be negative for credit scores when they are in their 40s when they are at their professional peak. Moreover, many individuals have a longer credit history at this age, so prior mistakes can be pursued for a long period on the credit history and credit score.
Typical Credit Scores for the 55–64 Age Group
The average credit score keeps declining but stays at the good to outstanding level for Americans in their late fifties and early sixties. The average credit score keeps declining for Americans in their late fifties and early sixties, however, it stays at the good to outstanding level at:
681
Most individuals at this age are preparing for retirement in one or two decades. As individuals become older, reducing the use of credit products and consistent loan repayment schedules may also help to maintain credit score stability.
65+ Elderly Population Current Credit Score Statistics
Though credit grantors do not particularly target the senior population, with the retirement age the average credit score is lower than in other age groups. Experian reports that the average score for people 65 and older is: Experian reports that those 65 and above have an average score of:
748
Lower average scores among seniors may be mostly ascribed to their fixed income and rising medical bills, which place them in a situation in which they cannot quickly pay their dues. Conversely, credit inactivity is more common among Americans 65 years of age and above who also utilize credit the least. Good credit holders should keep active in credit once in a while to extend the life of the accounts and the scores.
The Relation between Age and Credit Score
From the averages above, it is quite clear that credit scores are at their highest within a person’s middle age, specifically between thirty-five and forty-five years, after which they begin to experience a gradual decline in this aspect, probably because they are in their retirement years. But, many factors cause changes in the scores during a given period. On the cardholder level, your scores can rise and fall year after year depending on your credit and debt management behavior.
While age plays a role, individuals of any age can achieve excellent credit by:
- Meeting all financial obligations promptly
- Reducing credit card and other balances
- This means that accounts should be allowed to remain open for as long as possible.
- Balancing on credit mix
- Keeping an eye on scores and reports from time to time
- Erasing any mistakes as soon as possible
Whether you are young or old, it is important to embrace these credit best practices as they help shape scores above 700, which is usually considered good to excellent by most lenders. Since scores change over the lifecycle, this provides direction on how to attain and maintain your credit score targets.
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