What is a good credit score for 2023?
2023, the average VantageScore 4.0 in the US was 701. A 701 is in the “good” score range for VantageScores (670 to 739), and people with this score can likely qualify for many loans and credit cards.
The average credit score in the U.S. was 715 in 2023, increasing by one point from its 714 average in the third quarter (Q3) of 2022.
What is the average credit score? The average FICO credit score in the US is 718, according to the latest FICO data from April 2023. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.
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 to Credit Karma, the average credit score for 18-24 year-olds is 630 and the average credit score for 25-30 year-olds is 628.
According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.
| Average FICO 8 Score by Generation | ||
|---|---|---|
| Generation | 2022 | 2023 |
| Generation Z (ages 18-26) | 679 - Good | 680 - Good |
| Millennials (27-42) | 687 - Good | 690 - Good |
| Generation X (43-58) | 707 - Good | 709 - Good |
Most consumers have credit scores that fall between 600 and 750. In 2022, the average FICO® Score☉ in the U.S. reached 714. Achieving a good credit score can help you qualify for a credit card or loan with a lower interest rate and better terms.
What Is a Bad Credit Score? On the FICO® Score☉ 8 scale of 300 to 850, one of the credit scores lenders most frequently use, a bad credit score is one below 670. More specifically, a score between 580 and 669 is considered fair, and one between 300 and 579 is poor.
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.
Does anyone have a 900 credit score?
While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
Your credit score is a major factor in whether you'll be approved for a car loan. Some lenders use specialized credit scores, such as a FICO Auto Score. In general, you'll need at least prime credit, meaning a credit score of 661 or up, to get a loan at a good interest rate.
- Review your credit reports.
- Get a handle on bill payments.
- Use 30% or less of your available credit.
- Limit requests for new credit.
- Pad out a thin credit file.
- Keep your old accounts open and deal with delinquencies.
- Consider consolidating your debt.
- Track your progress with credit monitoring.
A 750 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 credit score of 800 will generally qualify you for a lender's best interest rates. As a real-world example, the average 30-year fixed mortgage interest rate was just over 7% as of late October 2022. However, the average rate paid by a homebuyer whose FICO credit score was 760 or higher was 6.583%.
While there is no set credit score to get an auto loan, a majority of approved borrowers have scores above 660. Having a low credit score won't necessarily keep you from getting an auto loan, but you will likely pay a higher interest rate.
How does my income affect my credit score? Your income doesn't directly impact your credit score, though how much money you make affects your ability to pay off your loans and debts, which in turn affects your credit score. "Creditworthiness" is often shown through a credit score.
Lenders like to see a mix of both installment loans and revolving credit on your credit portfolio. So if you pay off a car loan and don't have any other installment loans, you might actually see that your credit score dropped because you now have only revolving debt.
| State/ Territory | Average VantageScore Feb 2021 |
|---|---|
| New York | 712 |
| Ohio | 695 |
| Ohio | 695 |
| Oklahoma | 675 |
However, with a 735 credit score, you should qualify for rates on-par with national averages. Also, even though your score qualifies you for a mortgage, it's important to know that the lower your score is, the stronger the rest of your qualifications are generally expected to be.
Can I buy a house with a 730 credit score?
For one thing, you're unlikely to qualify for a lender's best mortgage rates. Lenders typically reserve their top rates for borrowers with very good or exceptional credit scores. However, with a 730 credit score, you should qualify for rates on-par with national averages.
This includes your credit score, monthly income, debt-to-income ratio, and more. However, if you have a 750 FICO score, you shouldn't have any issues being approved for a mortgage. With most lenders you should also qualify for excellent mortgage rates as long as you have a reasonable debt-to-income ratio.
Basically, "credit score" and "FICO® score" are all referring to the same thing. A FICO® score is a type of credit scoring model. While different reporting agencies may weigh factors slightly differently, they are all essentially measuring the same thing.
Exceptional (800-850): Borrowers in the exceptional credit score range are the most likely to qualify for credit and get good interest rates, according to Experian®, a major credit bureau. Very good (740-799): FICO says borrowers in this category also tend to have higher-than-average credit scores.
There isn't a set credit score that each person starts out with. Instead, if you don't have any credit history, you likely don't have a score at all.
