![]() ![]() Again, remember that your lender may use a different model which could result in a slightly different breakdown. Using the FICO 8 scoring model, the credit bureaus agree (see Experian’s post here and Equifax’s here) to the following breakdown for score ranges. But, don’t let the average discourage you if your score is lower, because there are many ways to increase your score. The average can be a useful baseline for comparing your own score. ![]() COVID-19 and other economic factors may have a negative impact on the national average, but only time will tell. Credit scores nationwide can fluctuate significantly depending on the state of the economy. There are actually multiple FICO scoring models, and lenders use a variety of them, but the information here specifically relates to FICO® Score 8.įICO most recently reported that the average credit score is 706. One initial point of clarification-while there are two major credit scoring models-FICO and VantageScore-we will focus primarily on the FICO score in this article, though we will make brief mention of the VantageScore as well. We’re going to talk about credit score categories in a moment, such as “poor,” “fair,” and “good.” But first let’s take a look at the average credit score. There are various tiers of credit scores, and being in a higher tier will generally bring the reward of better terms. If you are preparing to improve your credit, you need to know the general ranges for scores so that you can set a specific goal for yourself. Or even if you can, those goals can actually turn into major challenges if you’re stuck with high interest rates because you had a low score. Without a high score, you may not be able to pursue some of your major financial goals. ![]() Your credit score is a seemingly simple three-digit number, but it can have a major impact on your finances. ![]()
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