Average Credit Scores Among All Ages
While banking, have you ever wondered whether your credit score is average among your age group? Depending on your average age, you can determine how worried about that credit score you should really be.
While the average score in the United States is anywhere from 669 to 699, this varies by age, among other factors. Keep reading to see where your score falls in!
Age Vs. Credit Score: The Data
If you’re over the age of 70, it's likely that your credit score is around 730. If you’re between the ages of 50 and 69, your number will most likely be 700. If you’re anywhere from 35 to 49 years old, your credit score should be around 655. If you’re 21 through 34, this age group generally has a score of 634. Lastly, if you’re 20 or under, your credit score is most likely 631.
While this is not a direct correlation of age and credit score quality, there seems to be a general trend that the higher your age group, then the higher your credit score.
Why Does This Happen?
This generally makes sense. As an 18-year-old getting your first American Express (NYSE: AXP) credit card, it makes sense that consumers are just figuring out how to increase their credit scores. It also will take around six months for a credit score to be generated. This is the minimum amount of time for enough financial data to be collected on a person to create their credit score.
This also takes into account the lack of experience younger credit-card owners may have. Because they have less history of financial obligations, they may be predisposed to making more mistakes. They also may be carrying higher debt, from student loans to car debt loans, which can all play into negatively affecting their credit score.
Growing Older And Having Better Credit
A little known fact about the negative history on your credit score is that it will automatically clean itself overtime. The negative information on your credit report will only stay on your report for seven years. It then ages off the report, leaving you with a cleaner slate. This can be a useful tool for those suffering from very low scores. If you can avoid making any new mistakes in the upcoming years, you can watch as your credit score slowly but surely rebounds to a stable rate.
Great Credit Through MoneyLion
Despite the statistics, you can have a great credit score at any age. If this article has helped you realize your credit score is below average for your age group, then try MoneyLion for your online banking.
Money Lion allows every user with access to a low-interest 5.99 percent APR loan to keep their savings progress on track. This includes users with lower credit scores. These loans are accessible at anytime as a Plus member, without the need to reapply. Not only will this loan be deposited in seconds, but it has been proven by MoneyLion to raise members’ credit.
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