Average Credit Score
Background
Long before credit scores, human judgment was the sole factor in deciding who received credit. Lenders used their past experience at observing consumer credit behavior as the basis for judging new consumers. Not only was this a slow process, but it also was unreliable because of human error.
Lenders eventually began to standardize how they made credit decisions by using a point system that scored the different variables on a consumer’s credit report. This credit score helped to eliminate much of the bias that previously existed. However, it still was tied to intuitive measures of creditworthiness and was not based on actual consumer behavior.
Credit granting took a huge leap forward when statistical models were built that considered numerous combinations of variables. These models were constructed using payment information from thousands of actual consumers, which made a credit score highly effective in predicting consumer credit behavior. Scoring models made the credit-granting process extremely fast, efficient and objective, helping consumers quickly get the credit they need.
What Is the Average Credit Score in America?
The current average credit score is 693. A credit score ranges from 330 to 830. Individuals with low scores are considered to be a great risk to creditors. Based on the most recent data in the industry, Experian’s National Score Index provides an up-to-date picture of U.S. consumers’ credit scores. Here is a comparison of the average credit score by region.
VantageScore®
VantageScore® is the first credit score developed cooperatively by Experian and the other national credit reporting companies. Learn more about VantageScore.
Get more information on the average credit score.
VantageScore® is owned by VantageScore Solutions, LLC.