According to recent data, the average credit score in America has dropped by one point, from 718 to 717. Despite this slight decline, a credit score of 717 is still considered “very good” according to the VantageScore model. This model categorizes credit scores into different tiers, ranging from very poor to exceptional, with a score of 717 falling within the very good range.
When looking at average credit scores by age group, it appears that most Americans have relatively good credit scores. Generation Z and millennials have average scores of 665 and 687 respectively, while older generations such as Gen X, baby boomers, and the silent generation have even higher average scores. This is likely due to older generations having had more time to establish and maintain their credit.
To improve one’s credit score, experts recommend paying down debt as the most effective strategy. Paying down loan balances can have a significant impact on improving your credit score in both the short and long term. Additionally, asking your lender to increase your credit limit can help improve your credit utilization ratio, which is the amount of your total available credit that you are using. Maintaining a low credit utilization rate is key to having a healthy credit score.
It is important to be mindful of not overspending once your credit limit is increased, as this can lead to further financial difficulties. Consistency is key when it comes to maintaining a healthy credit score, which includes paying bills on time, keeping balances low, and avoiding excessive credit applications. By following these practices consistently over time, you can ensure that your credit score remains in good standing.
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