What is the Average Credit Score?
Wondering how your credit history compares across the country? The average credit score in America is 711, which is considered a “good” rating. The American average has climbed several points year after year, proving that no matter where you are on your credit journey, there are always ways to improve. Learn more about what is average credit and how scores are calculated with this overview.
What is Average Credit?
The three different credit bureaus–Experian, Equifax, and TransUnion–break down credit scores into five quality bands. While each organization uses slightly different measurements, the general breakdown of scores is as follows:
- 800-850: Exceptional
- 740-799: Very good
- 670-739: Good
- 580-669: Fair
- 300-579: Very poor
If you’re wondering what is average credit, that would be the range of scores in the “good” band, including scores from 670 up to 739. The national average of 711 falls solidly in that scale.
Credit scores are calculated based on a variety of factors, including:
- Your payment history
- How much you owe
- Your length of credit history
- New credit inquiries and a variety of accounts
The most straightforward ways to start raising your credit score involve making sure that you pay all your bills on time and only taking out new loans or debts as absolutely necessary.
What is the Average Credit Score in America?
711 is the average credit score in America as of the end of 2020, a number that’s seen a steady climb in the last decade. For comparison, in 2010 the average credit score was 689; by 2015, it climbed to 695. What has been the biggest contributor to this rise? Experian reports a drop in:
- Individual debt
- Decreased credit utilization
- Loan and payment delinquency
During the pandemic, people were being more careful with their money overall, taking on less debt as a precaution. With fewer opportunities to travel, go out, or make major purchases, the overall average credit score in America dropped.
Bring Home a New Car With Less-Than-Average Credit!
Even if you have less-than-average credit, you can still secure financing for your next new car. Green Light Auto Credit has a long history of helping those with below-average credit, so if you’re looking to bring home a new ride, get started today with our pre-approval application!
