Keeping your credit score healthy is a lifelong endeavor. It’s never too soon to start working on improving your credit score, but it’s also never too late to make progress. If you are in your forties or fifties, you may be wondering, what is the average credit score by age 50? Read on to find out.
Key Points
• By age 50, individuals typically have higher credit scores compared to younger age groups due to longer credit histories and more stable financial habits.
• The average credit score by age 50 often falls in the “good” to “very good” range.
• Many individuals at this age are managing mortgages and other long-term debts, which can influence scores positively if payments are made on time.
• Increased financial stability, including savings and steady income, often contributes to better credit scores around this age.
• People near age 50 can still improve their scores by lowering debt, making timely payments, and diversifying credit, which are critical factors in maintaining a high score.
Average Credit Score by Age 50
On average, consumers between the ages of 50 and 59 have a credit score of 706, which is considered a “good” credit score. This credit score is partially due to the borrowers having had the chance to build credit over a long period of time. The length of a borrower’s credit history is an important factor taken into consideration by the major credit scoring models.
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What Is a Credit Score?
A credit score is a three-digit number issued by a credit scoring agency that provides both you and interested parties with a glimpse of how reliable of a borrower you are. Lenders use these credit scores to get an idea of how likely an applicant is to repay a loan on time. Employers, landlords, and utility companies can also use a credit score to get an idea of your credit history, which helps them better understand how you manage your money.
Your credit report gives a detailed look at your credit history, but a credit score acts as a quick snapshot of how you navigate credit.
Recommended: How to Check Your Credit Score for Free
What Is the Average Credit Score?
Every borrower has a unique credit score, but understandably consumers don’t want to fall behind the average if they want to compete for the best lending products and rates. As of March 2024, the average credit score for all consumers in the United States was 705.
Average Credit Score by Age
To get a better idea of how you compare to borrowers in your age group, let’s take a look at what the average credit score is by age.
| Age | Average Credit Score |
|---|---|
| 20s | 662 |
| 30s | 672 |
| 40s | 684 |
| 50s | 706 |
| 60s + | 749 |
What’s a Good Credit Score for Your Age?
Because factors like length of credit history, credit mix, and consistent payments play a role in how high a credit score is (all of which come with years of credit usage), it’s understandable that younger borrowers are at a bit of a disadvantage. It takes time and discipline to build a high credit score. That being said, no matter their age, borrowers should aim for at least a “good” credit score — typically in the 670 to 739 range. Ideally, you will work toward a “very good” (740 to 799) or “excellent” (800 or higher) credit score.
How Are Credit Scores Used?
Credit scores are used in a few different ways, but primarily lenders rely on them to make decisions about which borrowers to work with, how much to lend them, and how much interest to charge them. Your credit score paints a picture for a lender about how responsible of a borrower you are.
If your score reflects that you have a manageable debt load and a history of making consistent on-time payments, a lender is going to be more likely to work with you and offer you favorable loan terms. If your score is on the lower side, that doesn’t mean you can’t qualify for a loan. However, lenders tend to charge borrowers with lower credit scores more interest to help offset their risk.
Factors Influencing the Average Credit Score
One of the best ways to keep your credit score in good standing is to understand how your credit behavior impacts your score. There are five factors that influence your FICO® Score — which is the most popular credit scoring model on the market (VantageScore is another popular model that works similarly). How much of your score is impacted by each factor varies.
|
Credit Score Factor |
|
|---|---|
| Payment history | 35% |
| Amounts owed | 30% |
| Length of credit history | 15% |
| New credit | 10% |
| Credit mix | 10% |
Recommended: Differences Between VantageScore and FICO Credit Scores
To strengthen your credit score, you will work on improving each of the five credit scoring factors consistently throughout your lifetime.
• Payment history: Missing a single payment by just 30 days can harm your credit score. Always aim to make consistent on-time payments.
• Amounts owed: Lenders like to see that you are keeping your credit utilization ratio low so you can afford to make debt payments.
• Length of credit history: The longer your credit history is, the better. Many young consumers start their journey with a credit card before moving onto loans.
• New credit: Applying for too much new credit can make lenders nervous. Keep your hard inquiries to a minimum.
• Credit mix: Having a healthy credit mix can assure lenders you can handle multiple loan payments at once.
How Does My Age Affect My Credit Score?
One area of your credit score that can be challenging to control is the length of your credit history. The more experience someone has managing credit, the more their score benefits. Applying for credit while young (such as with a credit card) and not closing credit card accounts can help keep that credit history strong.
At What Age Does Credit Score Improve the Most?
Credit scores generally improve the most in a person’s 30s, as they establish a longer credit history, stabilize income, and adopt better financial habits. Consistent on-time payments, reduced debt, and responsible credit usage during this period significantly boost scores, laying the groundwork for strong credit into middle age.
Older borrowers have many factors working in their favor that give them a leg up in the credit world, too. To start, they tend to have many more years of experience paying bills on time. They also tend to have longer credit lengths and a stronger credit mix due to having more time on their side. Borrowers in their 60s have the highest average credit score of 749.
Recommended: How Long Does It Take to Build Credit?
How to Build Credit
One of the best ways to start building credit is with a credit card. If you pay your balance in full each month, you don’t have to spend any money to have a credit card and can build your credit score while earning rewards points or cash back.
You can also keep your credit utilization ratio low by paying off the balance in full each month. If you can’t qualify for a credit card due to a lack of credit history, you can have a parent or spouse add you as an authorized user on their credit card.
Credit Score Tips
To keep your credit score healthy, it’s a good idea to practice these good credit habits:
• Pay on time: Always make payments by the due date to build a strong payment history. Use a money tracker app to keep an eye on your spending throughout the month so you can afford to pay your bills.
• Keep balances low: Aim to use less than 30% of your credit limit to keep credit utilization within the recommended range.
• Avoid frequent hard inquiries: Limit new credit applications, as multiple inquiries can lower your score.
• Maintain old accounts: Keeping older credit accounts open can help lengthen your credit history.
• Monitor your credit report: Credit score monitoring can help you stay on top of things. Regularly check your credit score and review your credit report for errors and dispute inaccuracies to protect your score.
• Diversify credit types: A mix of credit types (e.g., credit cards, loans) can positively impact your score if managed well.
The Takeaway
There’s no need to fear getting older when it comes to your credit score — time is on your side here. Practicing decades of good credit habits can result in your gaining access to the best loan rates and terms and make it easier to meet your financial goals.
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
How rare is a 700 credit score?
Earning a credit score of 700 is a very realistic goal. The average credit score in America is 705, so many consumers have a “good” credit score.
Does anyone have a 900 credit score?
The FICO credit scoring model tops out at 850. Finding a credit score of 900 isn’t possible.
How rare is 825 credit score?
Having a credit score of 825 is one of the best credit scores a borrower can achieve. This is a rare but not impossible score to obtain.
How rare is an 800 credit score?
Having an 800 credit score is not common and is very impressive. Borrowers can work toward an 800 credit score by always making credit payments on time, keeping a healthy credit mix, and maintaining a low credit utilization ratio.
How common is a 750 credit score?
The average credit score for borrowers of at least 60 years of age is 749 (this is the highest average of any age group). Achieving a credit score of 750 is not impossible but requires a lot of hard work and discipline.
What is a good credit score for a 50 year old?
The average credit score for a 50 year old is 706. Ideally, borrowers in their fifties will want to either have that score or an even higher one if they want to qualify for the best loan rates.
Photo credit: iStock/JLco – Julia Amaral
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