The present economic climate in the United States has everyone looking at alternative options for managing money and debt. The system used by most legitimate credit companies in the United States keeps up with individual credit scores. The scores are averaged to find the trends for specific areas of the US as well as an overall average credit score for the US.
What is the Average Credit Score in the US?
Consumers are becoming more protective of their credit scores due to current economic trends. One might think that average scores are dropping because of a higher percentage of those obtaining credit. Many have proposed that using any form of credit is a negative; but experts indicate that in itself obtaining credit is not bad, it’s about how the score is influenced by personal spending habits. Because of rising costs, credit may be the only way many can manage to purchase a home or a vehicle.
The average US credit score in the US is 723. This is the median, which is the score that is situated right in the middle of all scores tabulated. This means that half of the credit ratings fall above this number, and half fall beneath it. 723 is not a poor number for the present financial climate. Most lenders consider scores between 720 and 800 as a good risk. This simply means that the US average credit score is not too bad overall. It is not too far away from what lenders consider an exceptional score 770, but it is quite a bit higher than 650 which is considered a very risky score for lenders.
Although the US average score uses states’ averages to compute the median score, the average can vary greatly by state. Massachusetts has the highest average credit score followed closely by California and Oregon. Mississippi ranked at the bottom with the lowest average score. The scores may be primary indicators of the economic condition in that region. However, a credit score that remains high across the US would indicate that overall debt is being managed appropriately.
The US average credit score is a reflection of the nation’s economic climate. Even though there is a sharp increase of individuals obtaining credit, this average can reflect positive trends in the economy. There will always be extreme highs and lows, but a median score in the 700s is good news for the national economy.