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The History of Average Credit Score By Age | average credit score by age

The average credit score by age varies widely between age brackets. For example, in the United States, credit scoring for 18 year olds tends to be much higher than that of someone who is 55 years old. As credit scoring is primarily based on credit history and borrowing behavior, older individuals typically have higher average credit scores because of a more comprehensive borrowing history. Here is how it breaks down according to age group, based on data from Experian:

Generation – Those born in the late parts of the 20th century tend to have the best credit scores among this age group. There are several reasons for this. These individuals have grown up with good spending habits and do not seem likely to be delinquent in paying their debts. They have also been lucky in being able to purchase homes at a young age and have been able to get low interest rates on those homes.

Generation + – Those born later in the 20th century tend to have lower credit scores than other age brackets because they haven't reached the stage where they have built up any significant debt history. On the other hand, these individuals may be able to improve their scores by repairing their credit history and getting better offers on loans. Individuals who don't own a home or have debt only because of student loans could see their scores drop slightly. But, if they make a concerted effort to pay their bills on time, they can see an improvement in their credit ratings.

Sapience – Those with lower credit scores don't typically spend much time shopping for good deals. Their purchases are more likely to be impulse buys. Because of this, lenders often view these individuals as more likely to default on their payments. The less-than-perfect credit reports of this group can cause lenders to deny loans and turn down new applications.

Higher Credit Limit – People who get credit limits that are higher than the national average age of 21 tend to be younger. This is because they haven't yet built up significant debt. And, given that they don't have debt, lenders view them as less of a risk. A higher credit limit can help someone to avoid debt problems and increase his or her chances of qualifying for loans.

Higher Risk – Those with higher FICO scores tend to have less experience buying on credit. This means that they are less likely to be able to negotiate a good interest rate or get a loan with favorable terms. Lenders also consider people with lower scores as less-precious.

No payment history – Those who have no payment history on their accounts may have had revolving accounts for several years. These people may not have built up any significant debt. However, lenders look at this type of absence of payment history and assume the account is worth less-than-optimal interest rates.

Average Credit Scores by Age – People who have consistent payment histories over an extended period of time tend to have better credit scores. This is because lenders view these people as less-risk. This means that they are more likely to repay the amounts owed. And, given that payments amount to large amounts owed, lenders may charge relatively high interest rates to those with poor payment histories.

Current Age – When the recipient is in his/her late generation, the effects of past spending habits on future credit worthiness differ dramatically. People in this generation have not been able to establish a long-standing credit history, which usually affects lenders' views of them as high-risk. Therefore, while past average credit scores can help lenders determine how much to charge on new credit cards, they may give an older applicant a poor impression of future ability to pay.

Experian's Average Credit Score by Age is calculated based on the Experian consumer credit scores available online. These scores are based on the reporting of how consumers manage their credit. They use information from the three major credit bureaus to come up with the “standard” scores. These numbers are then divided by the number of individuals that are in each age group to come up with an “average.” This is not the same as the FICO (field experience analysis) scores, which are based on different measurements of credit risk. Both of these types of credit scores are used to determine your credit worthiness for loans and other types of credit.

An interesting aspect of the average credit score by age is that it drops off significantly when borrowers reach their thirties. This is likely due to the fact that many people in this age group are experiencing a period in their lives where they have substantial debts. This then causes their debt to be stretched out over a longer period of time, which causes it to have a negative impact on their credit history. If you are in this category, you will want to focus on ways to start managing your debt better. The best way to achieve this is by having a solid credit history. If you work hard to repair your credit history, you should see your average credit score return to more favorable levels.


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