The average credit score in the U.S. is 717, according to FICO®. Among 40-year-olds, the average score is slightly lower at 690. Both scores fall into the good range and are looked upon favorably by lenders. However, a score of 740 or higher is considered very good, while a score of 800+ is exceptional and can open the door to a lender’s best rates and terms.
Here’s a closer look at the average credit scores among Americans approaching 40.
Key Points
• By age 40, the average credit score often falls in the good range (670-739), reflecting established credit habits and histories.
• At this age, financial responsibilities like mortgages, car loans, and family expenses can influence credit scores positively if managed well.
• Effective debt management, including low credit card balances and consistent payments, significantly benefits scores for those in their 40s.
• The length of credit history boosts scores, as people around 40 have generally had credit accounts for over a decade.
• Even with a good score, those in their 40s can improve by paying down debt, reducing utilization, and avoiding unnecessary new credit inquiries.
Average Credit Score by Age 40
According to 2023 data from Experian, Americans between the ages of 27 and 42 have an average credit score of 690. While 690 is considered a good score, there’s still room for improvement.
FICO credit scores range from 300 to 850 and break down into the following categories:
| Poor | 300-579 |
| Fair | 580-669 |
| Good | 670-739 |
| Very good | 740-799 |
| Exceptional | 800+ |
What Is a Credit Score?
A credit score represents your credit behavior and is based on information on your credit reports. There are a variety of credit scoring companies out there, but two of the most common are FICO and VantageScore.
A low score suggests that you may have a history of missing bill payments or taking on more debt than you can afford. By contrast, a high score indicates that you can manage diverse types of credit and pay back your debts on time.
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What Is the Average Credit Score?
The average FICO credit score is 717 as of October 2023. That’s a point lower than the 718 average score that held steady from April 2023 to July 2023. FICO data revealed that the one-point drop is due to an increase in missed payments and consumer debt levels.
Average Credit Score by Age
Here’s how the average credit score breaks down by age group, according to Experian:
| Age group | Average credit score |
|---|---|
| Gen Z (18 to 26) | 680 |
| Millenials (27 to 42) | 690 |
| Gen X (43 to 58) | 709 |
| Baby boomers (59 to 77) | 745 |
| Silent generation (78+) | 760 |
What’s a Good Credit Score for Your Age?
A good credit score for your age could be one that’s higher than the average for your age group. As you can see in the table above, the average credit score tends to increase with age.
Gen Zers have the lowest average at 680, while consumers who are 78 and older have the highest average scores at 760.
It can take time to build good credit, especially if you’re new to the world of loans and credit cards. Managing your credit responsibly can help you increase your score over time.
How Are Credit Scores Used?
Lenders review your credit score when considering your application for a loan or credit card. A low credit score suggests you’re a risky candidate for credit.
If you have a low score, you might end up with high interest rates, increased fees, or low loan amounts. Or you might have trouble getting approved for a loan or credit card at all. In some cases, you can apply with a cosigner to boost your chances of approval.
On the flip side, lenders see consumers with high credit scores as low-risk borrowers. A high credit score makes it easier to get approved for a loan, as well as to access higher loan amounts and better interest rates.
Factors Influencing the Average Credit Score
The average credit score has decreased slightly due to a few factors. According to FICO, missed debt payments are on the rise. Between April and October 2023, the number of consumers with a 30-day or longer past-due payment on their credit card went up by 4%.
Consumer debt is also higher than it was before the pandemic, while new credit activity has slowed down. FICO credit score data showed an increase in the rates of default, as well as re-leveraging of debt.
Whether the average score drops or improves in the future will depend on several factors. High inflation could cause more financial stress on consumers, resulting in increased debt, missed payments, and a decrease in the average credit score.
Alternatively, changes to interest rates and an improved job market could help Americans stabilize their finances and build their credit scores overall.
How Does My Age Affect My Credit Score?
Your age isn’t a direct factor on your credit score, but it can impact the length of your credit history. Your length of credit history influences 15% of your FICO score.
A long history of accounts in good standing can have a positive impact on your credit score. If you’re new to credit, it will take some time to build up the age of your accounts.
In fact, you must have an account that’s been open for at least six months before FICO can generate a score for you.
What Factors Affect My Credit Score?
Here are the factors that influence your credit score:
• Payment history (35%): Your history of payments is the most important factor in your credit score. On-time payments help build up your score, while late payments drag it down.
• Amounts owed (30%): The amount you owe also has a major impact. It’s a good idea to keep your credit utilization below 30% of the total credit available to you.
• Length of credit history (15%): Your credit score also takes into account the age of your accounts. It takes time to build up a strong credit score.
• Credit mix (10%): Managing a diverse mix of credit types, such as installment loans and credit cards, can have a positive impact on your credit score.
• New credit (10%): Applying for multiple forms of new credit at once can ding your score and appear risky to lenders.
At What Age Does Credit Score Improve the Most?
Experian shows the biggest improvement in credit scores between Gen X (43 to 58) and Baby Boomers (59 to 77). The average score between these two groups shows an increase of 36 points, from 709 to 745.
However, this jump may reflect the different economic realities that each generation faced and doesn’t necessarily mean that your score will improve this much in your late 50s.
How to Build Credit
Here are some tips for how to build credit.
• Pay your bills on time: Making on-time payments on your loans and credit cards is essential for maintaining and improving your credit score.
• Reduce your credit utilization: A low credit utilization can also boost your score. As for how to lower credit utilization, you can achieve this by paying down credit card balances. You could also increase the amount of credit available to you by requesting a credit line increase from your current credit card issuer or by opening a new card. If you take this route, however, be careful not to overspend and rack up more debt.
• Maintain a mix of credit types: Managing multiple types of credit, such as student loans, personal loans, and credit cards, can build your score.
• Avoid applying for too much credit at once: Hard credit inquiries will show up on your credit report and ding your score, so space out your credit applications. If you’re shopping around for a loan or credit card, see if you can prequalify without affecting your score.
• Review your credit report: Credit reports sometimes contain errors. You can check your credit without paying at AnnualCreditReport.com to see if it has mistakes you need to dispute.
• Have your rent and utility payments reported: If you’re new to credit, you could use a service that reports your on-time rent and utility payments to the credit bureaus to build credit.
• Consider a secured credit card or credit-builder loan: Both secured credit cards and credit-builder loans are designed to help you build credit with on-time payments.
Credit Score Tips
While it’s interesting to see the average credit score by age 40, it’s more useful to understand what makes a good credit score. Regardless of your age, a good credit score starts at 670, while a very good score starts at 740. By building your score into the good or very good range, you’ll have a smoother time securing credit and qualifying for loans with a reasonable cost of borrowing.
The Takeaway
The average credit score by age 40 is 690, which falls squarely into the good credit score range. There’s still room for improvement, however, and bumping your score above 700 can help you qualify for better offers on loans and credit cards.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
FAQ
What is a good credit score for a 40 year old?
The average credit score for a 40-year-old is 690, so a good score may be one that’s higher than the average. On the FICO scoring model, a good score is one that ranges from 670 to 739.
How many people have an 800 credit score?
Almost one in four Americans (22%) have a credit score of 800 or higher, according to Experian.
How rare is 825 credit score?
Experian data found that 22% of consumers have an exceptional credit score between 800 and 850.
What is the average credit score by age 42?
The average credit score by age 42 is 690. For consumers between 43 and 58, the average credit score is 709.
How do you get an 800 credit score?
You can work toward an 800 credit score by making on-time payments on your debts, keeping your credit utilization low, and maintaining a mix of credit types. The age of your accounts also impacts your score.
Is 650 a good credit score?
A credit score of 650 falls into the fair range. A good credit score starts 20 points higher at 670.
Photo credit: iStock/Dzonsli
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