Last year, Americans’ credit scores improved to the highest level in five years thanks to improving economic conditions. Credit scores progressively rise with age.
During 2017, U.S. consumers had an average credit score of 675. The score that was utilized was the VantageScore.
In addition to improving from
673 the previous year, the average score turned out to be the highest it’s been since 2012 and now stands only four points from the pre-recession level of 679 in 2007.
Those details were provided by Experian in its State of Credit: 2017.
Among factors impacting the recent increase in scores
were a normalization in home prices and foreclosure rates and a historically low unemployment rate.
Experian noted that for the first time, there were more consumers with very high scores than there were with very low scores.
“For example, in 2017, 22.3 percent of Americans had Vantage Scores between 781-850 — a 6 percent increase versus 2016, and an improvement compared to five years ago when only 19.8 percent were in that range,” the report said. “Last year, 21.2 percent were below 600 — versus 22.6 percent in 2016 and 26.9 percent in 2012.”
Minnesota had an average credit score of 709 last year, the highest average in the nation. Mississippi’s 647 was the lowest.
The youngest consumers, Generation Z — who were born after 1996 — had average scores of 634. Generation Y, Millennials who were born between 1982 and 1995,
had scores of 638. Generation X, consumers with birth dates between 1967 and 1981, averaged 658.
Among older consumers, Baby Boomers, who were born between 1947 and 1966, had credit scores that averaged 703. The Silent Generation, who came into the world prior to 1946, had average scores of 729.
The report indicated that average mortgage debt was $201,811 last year. The average peaked among members of Generation X at $231,774, and was lowest at $156,705 for the Silent Generation.
