We’ve definitely seen some turbulence in the US economy over the past few years, from unthinkable shut-downs due to Covid, a reinvigoration thanks to stimulus, the job market exploding (but not enough workers), consumers ready to buy (but not enough goods because of supply chain issues).

And now, war in Europe causing a whole litany of economic chaos around the world.

But through it all, one thing has remained surprisingly steady: consumers’ credit scores.

In fact, according to new studies, the average credit score in America now sits higher than ever: an impressive 716 FICO Score.

FICO Scores — the preeminent credit scoring model — are based on a range from 350 to 850, with scores in the mid-to-high 600’s considered Good and anything above 720 or so viewed as a very good credit score. (For the record, FICO considers 716 and above a good credit score).

716 represents a new record high average score, signaling that consumers have been mindful of their debt, making payments on time, and other facets of maintaining a healthy FICO.

The new average of 716 is also 5 points higher than 2020, a significant increase in a short time considering there are hundreds of millions of Americans with FICOs.

And if we zoom out longer, to 2009, the average American credit score has increased a remarkable 30 points. (It’s important to note that 2009 was in the midst of the recession and foreclosure crisis so there were a whole lot of missed payments!)

There’s no doubt that credit scores have been rising steadily and consistently over the last decade in particular, although it’s not 100% certain if that rise is due to improved education and financial management, or a symptom of a strong and growing economy.

Other key facts about the state of credit in 2022 include:

  • 63% of Americans now have a FICO Score of 699 or higher. That means almost two-thirds of consumers have a good or very good score.
  • Even if we turn to VantageScore, another credit scoring model, we see the U.S. average at 698, a new all-time high.
  • That 698 VantageScore average is also a whole 10 points higher than it was in 2020.
  • Of course, not all credit scores are distributed equally. Minnesota (724), Vermont (721), and Massachusetts (720) are the states with the highest average VantageScores, while Mississippi (662), Louisiana (669), and Alabama (671) have the lowest averages.
  • (For reference, California has an average 709 FICO Score, which is middle-of-the-pack nationally.)
  • Predictably, older generations have higher average credit scores than younger generations, (Gen Z (18–23-year-olds) have an average FICO Score of only 674).
  • And men have reclaimed bragging rights for the highest average Vantage credit score by gender after women took that trophy in recent past years.

However, no matter who you are and where you live, the fundamentals for keeping a good credit score remain the same. According to myFico.com, your FICO scores are calculated based on:

35% Payment history,

30% Amounts owed,

15% Length of credit history,

10% New Credit, and

10% Credit mix.

The good news is that Blue Water Credit — the nation’s leader in ethical and legal credit restoration — is always here to help.

We offer a no-risk consultation for any consumer looking to bring their credit score up to the national average – or far beyond!

Contact Blue Water Credit today!