In our twenties, a common question is: “Do I have a good credit score?” Many of us hear from parents and peers that without a good credit score, we’ll face high interest rates and lender disapproval. However, average scores vary by age, and what might seem like a low score could be quite normal for your age group.
According to Experian, these are the average credit scores by age group:
Generation (Age) | 2022 | 2023 |
- Silent Generation (78+) | 760 | 760 |
- Baby Boomers (59-77) | 743 | 745 |
- Generation X (43-58) | 707 | 709 |
- Millennials (27-42) | 687 | 690 |
- Generation Z (18-26) | 679 | 680 |
Banks understand that achieving certain financial milestones in your early years can be challenging. You’re just starting out with financial responsibilities, such as securing your first apartment and learning to pay bills on time. Additionally, having little to no credit history, a significant factor in your credit score, is common at this stage.
These factors explain why credit score averages vary by age. It’s important to focus on improving your score to stay ahead of your age group, ensuring better loan approvals and lower interest rates.
Continue Working on Increasing Your Credit Score:
– Pay your credit card bills on time
– Keep your credit utilization below 30%
– Maintain a mix of different types of credit
– Avoid opening too many lines of credit simultaneously
– Keep balances low
Improving your credit score can seem daunting, but it’s all about consistency and smart financial habits. Remember, every small step you take adds up to a stronger credit profile. Ready to learn more about credit? Click here!
Fun Fact:
Did you know that even something as simple as paying your Netflix subscription on time can help build your credit score if reported to credit bureaus? Staying on top of small payments can have a big impact on your financial future!
JadyMejia
