15 Credit Score Statistics Everyone Should Know

15 Credit Score Statistics Everyone Should Know

Your credit score is one of the most important things to nurture when it comes to finances.

Having a good credit score enables you to do so much. It allows you to apply for loans, have mortgages, and so much more.

Yet despite the importance of this number, it is something that a lot of people still do not know much about, and something that many people struggle to understand. 

There are a lot of misconceptions about credit scores. A lot of people do not understand what they mean and this can lead to people unknowingly damaging their credit score. And as I have said, it is incredibly important that you have a good credit score. 

In this guide, I’ll be talking about 15 credit score statistics that everyone should know. So, if you want to find out more about these statistics, keep on reading! 

1. Around 26 Million American Adults Have No Credit Score

Let’s kick this off with one of the most unbelievable statistics on this list. According to the CFPB (Consumer Financial Protection Bureau), around 26 million adults living in America do not have a credit score. This equates to around 1 in 10 people. 

These people are considered to be “credit invisible” which means that credit agencies do not have enough data to supply these people with a score. This is due to these people having no credit history.

In order to get a credit score, you must have experience with credit. 

Some people believe that they can get around this by simply applying for a credit card, then not using it. However, unfortunately this isn’t the case.

It is possible to be credit invisible even if you own a credit card. In order to build your credit score, you must use credit but use it wisely to ensure that you do not damage your credit score in the process.

2. FICO Credit Scores Range From 300 to 850

When you are allocated a credit score, this is calculated based off of your credit report. This is essentially a report that looks at your credit history.

It will take into account any credit arrangements you have taken out, whether you have paid anything off, and any payments that you have missed. It will also take into account any financial dealings with the court (bankruptcy, etc.)

From this data, you will be given a credit score between 300 and 850. The higher the score, the better your credit history.

Generally FICO banding works like this:

  • Poor – 300-579 points
  • Fair – 580-669 points
  • Good – 670-739 points
  • Very Good – 740-799 points
  • Exceptional – 800-850 points

3. Only 22% of Americans Have A Credit Score Higher Than 800

It can be really easy to assume that everybody has a good credit score, especially if you find yourself in one of the lower brackets. However, this isn’t actually the case.

In fact less than a quarter of American adults have a credit score in the “exceptional” category. 

The reasoning behind this is often due to salary. There is a large correlation between income and credit scores, and it is often found that those with a salary higher than $100,000 have a higher credit score.

This is partly the reason why the number of people with an “exceptional” credit score is fairly low.

4. Around 30% Of American Adults Have A Subprime Credit Score 

One of the most common categories in the FICO credit score ratings is “fair”. This is because around 30% of American adults have a credit score between 580 and 669. 

This can seem like a worrying statistic. However, this percentage has actually reduced. So it seems that better awareness about credit scores, and credit monitoring, is having a good impact. 

5. Only 16% Of 18-Year-Olds Have A Credit Score

You might legally become an adult at 21, however you can actually take credit out from the age of 18. This is why your credit score starts building at age 18. However, as you would expect, not many 18-year-olds actually utilize this. 

I spoke about credit invisibility earlier, and it is estimated that around 84% of 18-year-olds fall into this category. 

6. The Average Credit Score Increases With Age

As we move up the age categories, the average credit score increases. As you would expect, the average credit score for those between 18 and 24 is pretty low, at around 679.

This is partly due to a smaller sample size, and also due to the fact that the small sample of this age gap utilizing credit aren’t necessarily doing it in a healthy manner. 

Then as you move into the older age categories, including 57-75 (average score of 740) and 75+ (average score of 760), the score gets much higher.

This is due to the fact that these people have a larger credit history, longer relationships with credit bureaus, and so on. 

7. Race Has An Impact On Average Credit Score

As well as age, race is something that also impacts the average credit score. As you may expect, the average credit score is highest among white people. This is partly due to privilege, but largely due to the white population in the US being the largest. 

The average credit score for white people is 727, while the average credit score for Hispanic people is 667, and the average credit score for black people is 627. The average credit score for Native American people is just 612. 

15 Credit Score Statistics Everyone Should Know (1)

8. Delaware Has The Perfect Credit Score

Of all the U.S. States, it is Delaware that has a recorded perfect credit score of 714. Minnesota has the highest recorded average at 742, and Mississippi has the lowest at 681. 

9. It Is Rare To Have A Perfect Credit Score

If you are invested in personal finance, you might dream of having a perfect credit score. However, this is actually very rare. Of all the people in the USA, only around 1.2% of people have a perfect credit score of 850. 

But, it is worth noting that most lenders consider a score higher than 810 to be perfect. 

10. A Lot Of People Do Not Check Their Credit Score

Checking your credit score is a huge part of being financially aware. However, a study conducted in 2020 found that only 33% of Americans had checked their credit score in the past year. 

11. Checking Your Credit Score Protects You Against Identity Theft

One of the easiest ways to discover identity theft is by checking your credit score and report. If you notice a significant drop in your credit score, this could prompt you to check your credit report.

This could make you aware of multiple financial decisions that you are not responsible for. If you check your credit report regularly, you should be able to catch this early. 

12. Less Than 20% Of People Aged 75+ Regularly Check Their Credit Score

Less than 20% of those aged 75+ check their credit score. This statistic alone is worrying, but it is even more worrying when you consider it in relation to our last point. 

People aged 75+ are already in the category most vulnerable to identify theft and fraud, and this statistic only makes them more vulnerable.

This is why checking your credit report is incredibly important, no matter how old you are, and even if you have no plans to apply for credit. 

If you want to find out more about identity theft statistics, check out our guide to 23 Troubling Identify Theft Statistics for 2022.

13. Credit Reports Are Susceptible To Errors

It is not uncommon for credit reports to contain errors, and these errors could be greatly affecting your credit score. It was found that 34% of people spotted at least 1 error on their credit report.

These errors included mis-spelled names, incorrect addresses, and payments marked as late when they were actually paid on time. 

14. Very Few People Check Their Credit Score Monthly

Every month your credit score will update. So, if you are interested in personal finance, you should be checking your score monthly. However, a study found that just 21% of people check their credit score on a monthly basis. 

Checking your credit score regularly is vital for spotting mistakes and disputing them. 

15. Experian Boost Can Help Increase Your Credit Score

Thankfully, there are lots of ways to improve your credit score. These include debt repayment plans, credit builder accounts, and tools such as Experian Boost. 

Experian Boost is a tool offered for those using Experian Premium, and it can help boost your FICO credit score instantly.

In fact, it was reported that 85% of thin-file consumers had their credit score improved when using Experian boost. So it’s got to be worth it, right?

Summary

In short, in this guide I have told you all about 15 credit score statistics that everybody should know. Some of these statistics might shock you, but they all should help you improve your knowledge of personal finance. 

Thank you for reading!