Record Average FICO Score

March 24, 2020
New high of 703 is up from 701 in 2018.

The average FICO score in the United States hit an all-time high of 703 last year, according to the 2019 Consumer Credit Review by credit reporting company Experian. That’s up from 701 in 2018 and up 14 points since 2010. Fifty-nine percent of Americans in 2019 had a credit score of 700 or more, the largest percentage ever above that threshold. A scant 1.2% of Americans had a perfect FICO score of 850, a figure that Experian reports is also on the rise. "Americans are making better credit decisions … which is an indication of consumers being more educated on their credit," said Shannon Lois, Experian's head of analytics, consulting and operations. "Late-payment rates have decreased for several credit products this past decade. Credit card balances saw moderate growth over time along with overall consumer debt signaling healthy credit behavior that provides confidence to lenders." Millennials are the driving force behind the nation’s growing credit scores, Experian added. Millennials now hold an average score of 668, with the generation seeing its average FICO score increase by 25 points since 2012 — the biggest increase of any age demographic. Meanwhile, the average age that Americans are reaching FICO scores of 700 (generally considered the “good credit” watermark by many lenders) is dropping. In 2019, that age was 54, the lowest it’s ever been. Eight years have come off that average age since 2012. The average age when Americans are reaching their peak FICO scores is also decreasing. In 2019, it was 78, down 11 years from the average age of 89 that held between 2012 and 2016.

Source: Scotsman Guide