The average credit score for a 20-year-old is 681, according to 2024 data from Experian. This is considered a “good” score and signals to creditors that you can manage credit responsibly, increasing the likelihood you’ll get approved for a loan or a credit card. However, you may not get the best interest rates or most favorable terms — those are usually extended to people with higher credit scores.
Find out what a credit score is, how a 681 score compares to the average American’s, and steps you can take to bolster your score.
Key Points
• The average credit score for 20-year-olds is 681, categorized as “good.”
• Payment history, credit utilization, length of credit history, credit mix, and new credit influence scores.
• Strategies include becoming an authorized user, reporting rent, and opening a secured credit card.
• Paying bills on time and keeping credit utilization low are crucial for building credit.
• Reporting rent and utility payments can help establish a positive payment history.
What Is a Credit Score?
A credit score is a three-digit number lenders use to help them determine how likely you are to repay a loan on time. It’s based on information from your credit reports, including your payment history, length of credit history, amounts owed, and credit mix. The higher your score, the more attractive you are to lenders — and the more likely you are to get approved for a loan or credit card.
Lenders typically report information to credit bureaus on a monthly basis, and in general, your credit score updates every 30 to 45 days. This means your score will likely fluctuate over time.
You may also have more than one credit score, depending on which credit scoring model a lender uses. The two primary models are FICO®, which is used in most lending decisions, and VantageScore. As you’ll see below, scores are categorized slightly differently in FICO vs. VantageScore.
FICO Score Ranges:
• Poor: Less than 580
• Fair: 580-699
• Good: 670-739
• Very good: 740-799
• Exceptional: 800-850
VantageScore Score Ranges:
• Subprime: 300-600
• Near prime: 601-660
• Prime: 661-780
• Super prime: 781-850
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Average Credit Score by Age 20
As we mentioned, the average credit score for a 20-year-old is 681, which is a good credit score, especially for someone that age. After all, most 20-year-olds are still relatively new to the credit scene, and it takes time to build up credit.
What Is the Average Credit Score?
The average 20-year-old has a lower credit score than the typical American — but not by that much. As of 2024, the national average FICO Score is 717, which falls within the “good” range. By comparison, the average American’s VantageScore is 702 as of 2024, which the credit scoring model classifies as “prime.”
Recommended: FICO Score vs. Credit Score
Average Credit Score by Age
While age doesn’t directly impact your credit score, it can play a role. Credit scores tend to rise with age, as older borrowers generally have more time to establish a strong payment history and demonstrate responsible credit usage. In the chart below, notice how average FICO Scores rise from one generation to the next.
Age Group | Average Credit Score |
---|---|
Gen Z (18 to 26) | 681 |
Millennials (27 to 42) | 691 |
Generation X (43 to 58) | 709 |
Baby Boomers (59 to 77) | 746 |
Silent Generation (78+) | 759 |
Source: FICO
At What Age Does Credit Score Improve the Most?
As the chart above shows, the biggest jump in credit scores is between those in Generation X (43-58) and the Baby Boomers (59-77). With the average Gen X credit score at 709, and Baby Boomers at 746, there’s a 37 point increase between the two age groups.
What’s a Good Credit Score for Your Age?
Regardless of your age, a “good” FICO Score is anywhere from 670 to 739. If you fall between those numbers — or exceed them — you’re on solid footing.
That said, many 20-year-olds are just starting to build their credit. As a result, their starting credit score most likely won’t be in the “good” range, but it also won’t be zero (no one’s credit score is) or at 300, the bottom score. Often, a starting credit score is in the good or fair credit score range (580-669).
Keep in mind that it can take up to six months before you even get your first credit score. Once you’ve established a track record of staying on top of your finances, you’ll likely see your score begin to increase. (Need help managing your money? A money tracker app can be a useful tool.)
Factors Influencing the Average Credit Score
Individuals who want a higher credit score can benefit from learning about the five key factors that affect your credit score. Some have more impact than others, but even the least-impactful factor can bring your credit score down.
What Factors Affect My Credit Score?
According to FICO, here are the factors that influence your credit score, in order of importance:
Payment History
This accounts for 35% of your credit score and carries the most weight. Prioritize making on-time payments, even if it’s just the minimum amount due. And practice smart budgeting, either with a spending app or a DIY method, so you can stay on top of monthly payments.
Credit Utilization
This refers to the amount of credit you’re using compared to what’s available to you, and it figures into 30% of your score. Lenders want to make sure you can handle your debts without being spread too thin or maxing out your available credit.
Length of Credit History
How long you’ve had credit makes up 15% of your score. The longer you’re able to show lenders that you’re responsible with credit, the higher your score will likely be.
Credit Mix
Having a diverse mix of credit contributes to 10% of your credit score and indicates to lenders that you can responsibly handle different kinds of debt.
New Credit
The amount of new credit accounts you open, and how quickly you do so, counts toward 10% of your score. Note that seeking out additional lines of credit means the lender will likely do a hard credit inquiry, and each hard credit check can temporarily lower your score by up to five points.
How Are Credit Scores Used?
Potential lenders use your credit score information as the basis for their decision whether to extend you credit. People with scores in the “good” or higher range generally have a better chance of being approved for a mortgage, loan, or credit card, than those who are in the “fair” or “poor” categories.
Your credit score may also be important in other areas of your life. For example, a landlord may run a tenant credit check before renting you an apartment or hoouse, and some employers may check your credit score during a background check.
How Does My Age Affect My Credit Score?
As we mentioned, credit scores tend to increase as people get older. This is most likely because they have a longer financial history and have adopted healthy financial habits along the way. But more impactful than age is the way someone manages their debt. For instance, a 50-year-old with a history of late payments will likely have a lower score than a 30-year-old with a spotless payment record.
How to Build Credit
When it comes to how to build credit, there are many strategies you can try. Here are some to consider:
• Become an authorized user on someone else’s credit card. If you have a family member with a high credit score, you may want to ask if they can add you as an authorized user on their account. This allows you to use their credit card for purchases (without being liable for the payments) and begin establishing a credit record.
• Look into getting your rent and utility payments reported to the credit bureaus. There are several services out there that will report your rent and utility payments to the credit bureaus.
• Open a secured credit card. With this type of card, you put down a deposit that acts as your credit limit. Credit card issuers will report your payments to the credit agencies, allowing you to build your score by making on-time payments.
• Get a store credit card. A credit card that can only be used at a particular retailer (think gas station or department store cards) can allow you to build credit, as long as the activity is reported to the major credit bureaus. Compared to traditional credit cards, store cards will have lower credit limits and may be easier to obtain.
How to Strengthen Your Credit Score
Whether or not you’re in the early phases of understanding how long it takes to build credit, there are steps you can take now to help bolster your credit score. Here are a few strategies to explore:
• Pay your bills on time. As previously discussed, this is the most influential factor in your credit score. Setting up automatic payments from your bank account can help ensure you don’t miss a due date.
• Keep credit utilization low. If you can’t pay your credit card balances off each month, strive to keep your total outstanding balance at 30% or less than your total credit limit. For example, if your credit card has a $1,000 limit, you’ll want to have a maximum balance of $300.
• Ask for an increase in your credit limit. Doing so could raise your credit score as it can improve your credit utilization ratio. But be careful: Running up a balance on a card with a higher limit will defeat the purpose.
• Avoid applying for too many credit cards or loans in a short period of time. With each application, a lender will likely perform a hard inquiry, which can lower your score temporarily. Multiple applications in a short time frame may also indicate to creditors that you’re a financial risk because you’re seeking a substantial amount of credit.
Credit Score Tips
Along with all of the aforementioned suggestions for building and strengthening your credit score, it’s important to monitor your score regularly by checking your credit report and disputing inaccuracies. You can get a free weekly copy of your credit report from each of the three credit bureaus via AnnualCreditReport.com.
Additionally, you can also use a credit score monitoring service to track any changes to your credit report and credit score.
Recommended: Why Did My Credit Score Drop After a Dispute?
The Takeaway
What is the average credit score for a 20-year-old? According to FICO, it’s 681, which is considered “good.” Handling credit responsibly is important in order to maintain — and eventually increase — this credit score. Making on time payments, not applying for too much credit at once, maintaining a diverse credit mix, keeping credit utilization low, and building a strong credit history are all important financial habits that will help a 20-year-old build and strengthen their score.
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
Can a 20-year-old have a 700 credit score?
Technically, yes, it’s possible. But it’s more likely that someone this early on in their credit journey will have a score somewhere in the mid-to-higher 600 range.
What is a bad credit score for a 20 year-old?
FICO categorizes any score under 580 as “poor” credit. The score would make it challenging to get credit cards or be approved for loans. If you are approved, you can expect higher interest rates and more restrictive terms.
Is 760 a good credit score for a 20 year-old?
A credit score of 760 is in the “very good” range and is only 40 points away from the top category of “exceptional,” per FICO. Achieving this high of a score usually requires a long history of responsible credit usage, which most 20-year-olds haven’t achieved yet.
How rare is an 825 credit score?
Having an 825 credit score is fairly unusual, since it’s in the top tier and only 25 points away from the highest score you can obtain. Arriving at and maintaining this credit score signals you have near-flawless credit.
Is a 900 credit score possible?
No. The highest possible credit score you can get is 850.
Can I buy a house with a 735 credit score?
Yes, you can buy a house with a 735 credit score. In fact, a 735 credit score exceeds the usual qualifications for all types of mortgage loans.
Photo credit: iStock/FG Trade
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