With typical driving, a car battery usually has a lifespan of three years of trouble-free driving. At that point, you might need to charge it. But what if you park the car and just let it sit? In that case, how long does a car battery last without driving or charging?
This post will take you through a variety of scenarios to help you gauge how often you might need to start up a car in order to preserve the battery life.
Key Points
• A car battery can go dead in as little as two months if it’s not charged or the car not driven.
• Battery lifespan is influenced by age, type, and electrical issues like bad cables.
• Problems hold a charge, an unpleasant smell, and a bulging battery case are all signs a battery should be replaced.
• A new battery can cost between $100 and $200.
• A mechanic may charge up to $250 to replace a battery.
How Long a Car Battery Lasts Without Driving
Although no two vehicles or batteries are exactly the same, estimates can be made. So if you’re wondering how long a car battery typically lasts when the vehicle sits idle, here are some broad averages.
First, it’s strange but true: Although many things wear down with use, a car’s battery can “die” within a couple of months if it’s not used. Here’s why: Your car battery takes chemical energy and transforms it into electrical energy when you start the ignition. That electricity then powers the radio, clock, and other accessories.
When you park your car for an extended period, the battery can go dead — meaning, not operate without a charge — as quickly as in two months’ time.
As for how long an electric car battery lasts, the answer is about the same. Electric cars are fueled solely by electricity stored in the battery. Teslas, for example, are all-electric. If the battery is in good shape and fully charged, it might take a month or two to lose power.
Then there are hybrid cars, which are fueled by a combination of electricity and gasoline. How long a hybrid car battery lasts when not in use depends on the battery. Vehicles with 12-volt batteries may drain more quickly than other kinds — in as little as one month. See your owner’s manual for guidance.
As noted, using your car allows it to convert chemical energy into electrical energy. If your car will be sitting idle for a while, it’s a good idea to take it out for a 15-minute drive once a week to allow the battery to recharge.
Simply turning the ignition on and off is not enough. This sort of usage may cause more harm than good. If you’ve got more than one vehicle at home and use one as your primary vehicle, consider using the secondary vehicle more often.
Consider using a “trickle charger.” These devices, which are attached to the car long-term, recharge the battery at the same rate it typically drains. There are different types of chargers that can be left connected to your vehicle for varying lengths of time. Make sure you get the type that’s appropriate to your car model and you understand how it should be used.
Steps to Take if a Car Battery Is Dead
If you accidentally leave the lights on (or some other accessory), you probably just need to juice up the battery again.
When there’s no obvious reason that the battery is drained, check for corrosion on the terminals that connect the car battery to the charging system. If you see white deposits, try brushing the ashy material off with a wire brush and baking soda.
If the first two scenarios don’t apply, you may have a defective battery. The problem can also be other faulty or worn-down parts, such as a battery cable, terminals, or alternator. In that case, you’ll need the parts repaired or replaced.
How Much Replacing a Car Battery Costs
If you’re going the DIY route, a new battery can cost between $100-$200. If you’re going to hire a mechanic to have the work done, it may cost an additional $45 to $250, depending on the make and model and the mechanic’s pricing.
When you jumpstart your car, you use the power from another car battery to give yours a “jump” and allow it to operate again. If a jumpstart doesn’t work, then it’s more than likely you need a new battery.
First, park the two cars close together, turn them both off, and open the hoods. Take out your jumper cables and untangle them. Hook the red/positive clamp to the positive terminal of the battery that needs a charge. Then attach it to the working battery’s positive terminal, using the red/positive clamp.
Take the black/negative clamp and connect it to the negative terminal of the working battery. Attach the other black/negative cable end to a surface on the car with the dead battery — somewhere that’s metal and unpainted.
Start the working car, then see if the other car will also start. Turn off the working/jumper vehicle. Carefully remove the cables in the reverse order that you attached them. Let the car with the newly charged battery run for at least fifteen minutes.
Some insurance policies cover jumpstarts as part of their roadside assistance option. When deciding how much car insurance you need, weigh the cost of this extra against the added convenience.
How long the battery charge lasts can vary. If it goes dead again, have your battery checked out to see if it needs to be replaced.
How to Know When a Car Needs a New Battery
Here are some signs that your car battery may need to be replaced:
• The battery no longer holds a charge for long.
• Your car isn’t starting as easily as it used to or shuts down after starting.
• The battery smells bad.
• The battery case is swollen or bulging.
• It’s been a while since your battery has been replaced. (A good rule of thumb is to refresh yours every three to five years.)
Car Insurance Resources
As mentioned above, some car insurance policies offer roadside assistance options. The next time you’re sitting down for a personal insurance planning session, consider the pros and cons of these kinds of extras.
To find the best rates you’re eligible for, shop around on an online insurance marketplace.
The Takeaway
How long a typical car battery lasts depends on how often you drive or charge it, how old the battery is, the type of battery, and more. A new car battery should last about four years on average. The cost of a new battery can be as little as $100 if you replace it yourself. Otherwise, a mechanic may charge you hundreds more. Keeping your battery free of corrosion may extend its life and protect your investment.
When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.
SoFi brings you real rates, with no bait and switch.
FAQ
How long does a car battery last without charging?
A car battery can last around four years if you’re regularly using the car. If you leave lights on or park the car for an extended period, then it may need charging before you can drive it. A “trickle charger” can help maintain the battery in a car that’s in storage.
How often do you need to start your car to keep the battery from dying?
A car battery can often stay in good shape for a month even when you don’t drive the vehicle. However, if you want to make sure the car is ready to use in case of an emergency, take it for a 15-minute drive once a week.
How long can a car last on just the battery?
If your alternator fails when you’re on the road, you may still be able to drive on just the battery. The amount of time you have before your car dies depends on a number of factors, including how much charge your battery has. Of course, it’s best to get the alternator repaired or replaced as soon as you can.
Photo credit: iStock/Fernando rodriguez novoa
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
A car is typically considered totaled when the insurance company determines it will cost more to repair than the vehicle is worth. Beyond that, states have their own guidelines for when a car should be declared totaled. That guideline is called the “total loss threshold.”
Learn more about the different thresholds for totaled cars in each state, and what to do if your car is totaled in an accident.
Key Points
• Total loss thresholds vary by state, ranging from 60% to 100% of a car’s actual cash value (ACV).
• Some states use a total loss formula, considering repair costs against fair market value minus salvage value.
• Alabama’s threshold is 75%, while Georgia uses the total loss formula.
• Insurers may declare a car totaled if repair costs are close to the ACV, often around 75%.
• Understanding state-specific thresholds is crucial for navigating insurance claims after an accident.
What Is a Totaled Car?
A totaled car, according to insurance companies, costs more to repair than its current book value. An insurance company can also declare a car totaled when the vehicle may be unsafe to drive even after repairs are complete.
Not all damage is the result of a crash. Vehicles that are caught in a flood usually sustain so much damage that it’s common for a flooded car to be deemed a total loss.
What Insurance Covers When a Car Is Totaled
If your car has been damaged, you may wonder how much it’s worth. When an insurer considers a car to be totaled, they reimburse the owner for the “actual cash value,” or ACV. That is the amount the car was worth right before the crash or incident.
The ACV is not the same as what you paid for the car. That’s because the original purchase price is reduced over time by depreciation. The ACV is also typically less than what it will cost to replace the car, known as replacement value.
How Is a Totaled Car’s Value Determined?
As mentioned above, insurance online insurance companies evaluate totaled cars based on their condition and mileage just before the accident or incident. Other factors include make and model, age, and where you live.
What Is a Total Loss Threshold?
An insurance company may consider a car totaled even when repair costs are less than its ACV — sometimes quite a bit less. That’s because when a damaged car is assessed, the insurance adjuster is limited to a superficial visual inspection. It’s recognized that more damage is often uncovered during the repair process, as the mechanic takes a close look at hidden components. (By the way, some drivers might find this rundown of car insurance terms helpful.)
The total loss threshold is a set percentage of the ACV where a vehicle is still considered totaled. Each state sets its own percentage; the threshold for Alabama, for example, is 75%. Insurance companies may use a lower percentage, but they must meet the state’s minimum.
Total Loss Threshold by State
You can find your state’s total loss threshold in the table below. For states that use the “total loss formula,” the threshold is set as the vehicle’s fair market value less its salvage value.
After an accident, you probably know to call the police and then alert your insurance company as soon as possible. But then what? Here are the steps.
1. File a Claim
Filing a police report is not enough. You must contact your insurance company separately. Do so as soon after the accident as possible so they can begin working on your claim. You can also find out how much your insurance may go up after the accident if you’re found at fault.
Your insurance company may direct you to one of their approved body shops for a review of the vehicle and its damage. If you have your own trusted body shop, ask the insurer if you can take it there. As long as the estimate seems reasonable, then the insurer should accept it.
3. Know Your Car’s Fair Market Value
You can use sources like Kelley Blue Book (KBB.com) and Edmunds True Value (Edmunds.com) to look up your car’s value. Just enter the make, model, and year. (Users of SoFi’s Financial Insights app also have access to our Auto Tracker.)
Besides online research, you can work with a dealership to get an estimate. No matter which route you go, this is important information to have because it will give you an idea of how much your insurer may pay for your car.
4. Contact Your Lender
If you owe money on the totaled vehicle, let your lender know about the accident. Your insurer will either pay off the lender directly (if you receive enough funds to cover the balance) or write a check for you to forward to the lender. If you receive more for the totaled vehicle than you owe, then the balance beyond the loan amount goes to you.
If you have a gap insurance policy on the totaled car, that will pay off your lender if your insurance reimbursement doesn’t cover all that you owe on the vehicle.
5. Negotiate the Claim With the Insurer
Depending on who is at fault, you may or may not need to pay your insurance deductible. If your insurance assessment feels off, you may want to negotiate the ACV or the cost of repairs.
If your negotiations are fruitless, switching car insurance is always an option. You can also contact your state’s department for insurance for help.
6. Shop for a New Car
It can take two to four weeks to get a check. States usually provide time frames in which a claim should be processed. Your insurance company can also give you an estimate on their typical processing time.
Pros and Cons of Keeping a Totaled Car
Sometimes, a totaled car’s owner may want to hold onto it. This is known as an “owner-retainer option.” In this case, the insurance company will typically reimburse the owner the amount owed minus the salvage value.
The owner can take the payout and repair the vehicle to a drivable condition, which will likely cost less than buying a replacement vehicle. The downside is that the owner gets less cash and will need to get car insurance for the old vehicle, which can become a more expensive proposition than simply taking the cash. The owner may also keep the car and not fix it — or partially fix it — assuming that it’s drivable.
The owner can then sell the vehicle, perhaps to a salvage yard or other drivers for parts. You may end up getting more money than the insurance company would pay out. However, this isn’t guaranteed. Instead, you can end up with less money and more work.
• Gather your loan paperwork (if applicable), car title, and maintenance receipts to have all the information you may need at hand.
• Remove personal belongings, such as phone chargers and sunglasses, from the vehicle. In most states, you’ll need to give the state DMV your license plate. In some states, you can keep the plates and put them on your replacement car.
• Consider whether donating the car is a good option. You may be able to claim a tax deduction for your good deed (keep your receipt), but you won’t get the funds you would from selling the car.
The Takeaway
A car is considered totaled when the insurance company determines it will cost more to repair than the vehicle is worth. However, insurance companies often pick a figure that’s considerably lower than the vehicle’s actual cash value, because more damage is typically found once repairs have begun. That amount is called the “total loss threshold.” The legal threshold varies by state, but is typically between 60% and 100 of a vehicle’s value.
When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.
SoFi brings you real rates, with no bait and switch.
FAQ
What is the percentage before a car is considered totaled?
You’re referring to the “total loss threshold.” After an accident, if repairing a damaged car will cost close to its actual cash value — say, 75% or more — then the insurer may consider the car totaled. This threshold varies by state but is typically 60% to 100%.
What is the total loss threshold for GA?
Georgia is a Total Loss Formula state. That means that a car is considered totaled if the cost of repairs equals the vehicle’s fair market value minus its salvage value.
What is the threshold for totaling a car?
It depends upon the state where the accident occurs and your insurance policy. Most state thresholds are 60% to 100% of a car’s value. Insurance company thresholds may be lower, but by law cannot be higher.
Photo credit: iStock/Pakhnyushchyy
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
The average FICO® credit score in America is 717, as of October 2023. And as of May 2024, the average VantageScore® is 702. Both scores are considered to be in the good range and could help a borrower qualify for favorable loan and line of credit terms.
As you’re comparing your own credit score to the national average, it helps to understand how scores are calculated and how these three digits could impact your financial health and long-term goals. Here, learn more about credit scores and some steps you can take to build yours.
Key Points
• The average FICO credit score in the U.S. is 717, while the VantageScore is 702, both falling in the good range.
• Average credit scores differ by state across the U.S., and there are multiple types of credit scores (for auto loans vs. mortgages, for example).
• Key factors in a credit score include payment history, amount of debt vs. credit limit, credit history length, new credit requests, and credit mix.
• Monitoring one’s credit score and report is vital for financial health and can be done for free.
• Ways to build a credit score include being an authorized user on a credit card, obtaining a secured credit card or credit-builder loan, and always paying debt on time.
How Do Average Credit Scores Compare by State?
While there’s a national average credit score, there are also state numbers that vary a bit. The chart below shows the average credit score by state as of the third quarter of 2023, according to Experian®.
State
Average Credit Score
Alabama
692
Alaska
722
Arizona
713
Arkansas
696
California
722
Colorado
731
Connecticut
726
Delaware
715
District of Columbia
715
Florida
708
Georgia
695
Hawaii
732
Idaho
729
Illinois
720
Indiana
713
Iowa
730
Kansas
723
Kentucky
705
Louisiana
690
Maine
731
Maryland
716
Massachusetts
732
Michigan
719
Minnesota
742
Mississippi
680
Missouri
714
Montana
732
Nebraska
731
Nevada
702
New Hampshire
736
New Jersey
725
New Mexico
702
New York
721
North Carolina
709
North Dakota
733
Ohio
716
Oklahoma
696
Oregon
732
Pennsylvania
723
Rhode Island
722
South Carolina
699
South Dakota
734
Tennessee
705
Texas
695
Utah
731
Vermont
737
Virginia
722
Washington
735
West Virginia
703
Wisconsin
737
Wyoming
724
Why Do I Have More Than One Credit Score?
As mentioned, the chart above shows FICO scores, which are used in 90% of lending decisions. But that’s not the only credit score you have. The other is called VantageScore. You’ll find different credit scores for two main reasons. First, they are competitors in this category, and each one calculates credit scores differently.
The other reason you might see a different credit score is due to the fact that FICO has different credit scoring models based on what the lender is looking for (mortgage, auto, credit card). In addition, FICO also releases credit score updates, or versions, of their credit-scoring model, similar to an Apple or Microsoft software update.
Here’s an example of what FICO scores you might see and the purpose they serve. (Note: You will see that the numbering does not always go sequentially; for instance, there isn’t a FICO Bankcard Score 6 or 7 in use.)
FICO credit-scoring model
Purpose
FICO Score 2
FICO Score 5
FICO Score 4
Mortgage lending
FICO Bankcard Score 9
FICO Bankcard Score 8
FICO Bankcard Score 5
FICO Bankcard Score 4
FICO Bankcard Score 3
FICO Bankcard Score 2
Credit card lending
FICO Auto Score 9
FICO Auto Score 8
FICO Auto Score 5
FICO Auto Score 4
FICO Auto Score 2
Auto lending
FICO Score 9
FICO Score 8
General
FICO Score 10
FICO Auto Score 10
FICO Bankcard Score 10
FICO Score 10T
Newly released scoring models
As you can see, there are many scoring models currently in use. But your score likely won’t vary drastically with the different versions.
What Is a Good Credit Score Range?
Technically, a good credit score range is between 670 and 739, according to FICO, the original provider of credit scores. (For VantageScore, the good range runs from 661 to 780.) But if you’re casually talking about what a “good” credit score is, anything above 670 is considered good. A score of 850 is the maximum credit score and is considered excellent or exceptional.
If you are curious about what the starting credit score is, you’ll find two different answers: the lowest credit score and the first credit score you get. The lowest credit score is 300, but that’s not where you’ll start. If you take out your first loan and make on-time payments, for instance, you’ll get your first credit score about six months later. Chances are, your consistent payment history will bump it up closer to the 500-700 credit score range. A score lower than that would likely reflect bad marks on your credit report.
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• Your bank or credit card issuer: You’ll often see a free credit score — and sometimes a full credit report — supplied by your bank or credit issuer located in your online account. Be sure to check if the credit score is supplied by VantageScore or FICO, as the numbers can be different.
• Nonprofit credit and housing counselors: You may be able to get help accessing your credit score through nonprofit agencies.
• Credit score service: You may be able to pay to monitor your credit score with various companies. Usually, there are more services they can offer in addition to monitoring your credit score to make it worth your while.
Checking your credit score can help you see where you are, if there are any errors on your report, and whether you might address areas that are dragging your score down.
What Affects Your Credit Scores?
What affects your credit score is related to how well you manage credit. Credit scoring models were developed as a way to help lenders evaluate how risky it is to lend you money based on how you have handled credit to date.
There are different ways lenders gain insight into how you manage credit with the credit scoring model, which is further broken down into categories. That said, key facets of your credit score (which are detailed below) include such aspects as whether you pay on time, how much you owe, the mix of ways in which you’ve accessed credit, and the length of time you’ve been using credit, among others.
Credit Score Factors by Percentage
The breakdown of factors contributing to FICO credit scores is 35% payment history, 30% amounts owed, 15% length of credit history, 10% new credit, and 10% credit mix. Here’s how they work.
Payment History: 35%
Payment history captures your past behavior of making payments on time or not. It also includes whether or not any of your accounts have fallen into delinquency. In other words, if you have a long history of paying on time, that can contribute positively to your credit score.
Amounts Owed: 30%
Most financial experts believe that you should only use 30% of your credit limit. Ten percent is better still. Using too much of the credit available to you is seen as a sign of risk to lenders, and it’ll pull down your score. Learning how to lower credit card utilization may help build your score.
Length of Credit History: 15%
When you have a short credit history, you are something of an unknown quantity to lenders. Those who have been accessing credit for a significant period of time have proven how well they can handle this aspect of their finances. That is why a longer credit history can positively impact your score.
If you are just starting out on your credit journey, you will likely need to manage your payments well for several months in order to start building your credit score.
New Credit: 10%
This factor reflects whether you have been seeking additional credit recently. Applying for a lot of new credit in a short period of time is typically seen as risky to lenders. They may see it as a sign that you’ll be overextended and have financial trouble ahead. For this reason, it’s best to limit the amount of credit you apply for.
Credit Mix: 10%
Credit mix refers to the different types of credit accounts you have. This includes installment accounts (such as auto loans, personal loans, and mortgages) and revolving credit accounts (such as credit cards and HELOCs). Good management of a mix of credit shows lenders you can be responsible with different types of credit.
What Information Credit Scores Do Not Consider
You might also be curious to know what doesn’t affect your credit score. FICO lists the following as factors that do not affect your FICO Score:
• Where you live
• Salary and employment
• Age and sex
• Color, ethnicity, race, or national origin
• Marital status
• Religion
• Receipt of public assistance
• Child or family support obligations
• Interest rate being charged on another card
• Any information not found on your credit report (such as your bank account details)
• Whether or not you’re participating in credit counseling of any kind
• Nonbankruptcy public records
How the VantageScore Is Calculated
Now that you know all about the FICO scoring system, consider how VantageScore is determined. The VantageScore calculation breakdown is a little different from FICO. The following breakdown is based on VantageScore 4.0, the most recent model released in 2017:
• Payment history: 41%
• Depth of credit: 20%
• Credit utilization: 20%
• Balances: 11%
• Recent credit: 6%
• Available credit: 2%
In this model, payment history is the biggest driver of your credit score, much like it is with FICO. But the weights and calculations are different from FICO’s, so it’s natural to see a different score when the credit score provided to you is a VantageScore instead of a FICO score.
The first credit score was the FICO score, launched in 1989 with the leading credit bureaus to help them evaluate a consumer’s creditworthiness. (FICO, incidentally, is an acronym for Fair Isaac Corporation.) The VantageScore was launched in 2006, a joint venture among the big three credit bureaus, Equifax®, Experian®, and TransUnion®.
Different lenders use different scoring models, and once they’ve committed to a version of the scoring model, it’s not easy to change. Each individual lender chooses when to update to new scoring models released by FICO or VantageScore.
One auto lender may use FICO® Auto Score 9 while another lender may use FICO® Auto Score 8. One credit card company may show you a VantageScore while another shows you a FICO score.
To sum up, the reason you see different credit scores is due to three main factors: different providers (VantageScore vs FICO) with different credit scoring models and different versions.
Why Having a Good Credit Score Is Important
A good credit score can benefit your financial life. Here’s how:
• Better loan rates: You may be able to secure a better interest rate on your loan.
• Easier to get a loan: A better credit score can help you qualify for a loan.
• Better insurance rates: You likely won’t pay as much for car insurance when you have a good credit score.
• Easier to get an apartment: If you apply for an apartment, your landlord may look favorably on a good credit score.
• Higher credit limits: A better score can help you be approved for a higher credit limit, which can help with your credit utilization ratio.
• Better rewards: You may be able to qualify for the premium travel cards and rewards programs with good credit.
• No security deposit for utilities: If you’re setting up utilities, your credit is typically checked. If you have a good credit score, the deposit may be waived.
How to Build Your Credit Scores
It’s not uncommon to need to build your credit score before applying for financing. Doing so can help your chances of being approved as well as possibly secure competitive terms.
• Check your credit report for errors. Any information that is incorrect, such as dates or amounts, can be disputed.
• Set up autopay. Your payment history makes up 35% of your FICO credit score, so you want to get your bills paid on time, every time. Putting your bills on autopay helps make this task a snap.
• Consolidate credit card debt. Replacing credit card balances with a personal loan can help improve your credit utilization ratios and get the debt paid off with the regularity that an installment loan brings.
• Use a money tracker app. Technology is incredible for facilitating money decisions. It can be helpful for seeing your income, spending, saving, investing, planning, credit score monitoring, and more. A good starting point: See what tools your financial institution offers.
If you don’t have a credit score yet, don’t stress: There are plenty of ways to start building your credit. Here are some strategies to consider:
• Become an authorized user. Being added to another credit card account (like a parent’s) can build credit history.
• Get a secured credit card. A secured credit card requires a deposit in exchange for a line of credit. When you pay it off on time, you’ll build a positive credit history.
• Take out an installment loan. It may be possible to build credit history with an installment loan. Auto loans are an example of an installment loan that often advertise possible loan approvals with little to no credit history. In some cases, you may need a cosigner to get the loan approved.
• Consider a credit-builder loan. You may want to look at credit-building loans, which can benefit people who don’t have a credit score (or have a low credit score). They usually require a deposit or paychecks be automatically deposited to the account to qualify.
At times, you’ll see your credit score change, and it might worry you. Here are some common reasons why your credit score may have changed.
• Too many credit inquiries. Don’t apply for too much credit in a short period of time. This can look like risky behavior on your part (say, like you are strapped for funds), and your score will likely decrease.
• Late payment. If your payment is more than 60 days past due, it may show up on your credit report, and when it does, you may see a noticeable drop in your credit score.
• Maxed out a card. When your credit utilization ratio increases (how much credit you’re using relative to how much is available to you), you’ll typically see a decrease in your credit score.
• Paid off an account. It might seem illogical, but when you pay off a loan and close the account, your credit score may go down. This is because you’re decreasing the credit available to you and shortening the length of your credit history, both of which can pull down your credit slightly. But don’t panic — your score will usually recover quickly.
• Collection account, bankruptcy, foreclosure, or other derogatory mark: Your credit score may decrease drastically if there’s negative information in your credit report. These kinds of marks can stay on your credit report for seven to 10 years.
Monitor Your Credit Report and Score
Monitoring your credit score and report can help keep you on track to reach your financial goals. This is especially true if you are focused on building your score to a certain level (say, if you plan to apply for a mortgage in the near future).
There are a lot of smart tools you can use to monitor your credit report and score, as well as budgeting and spending apps that can help you manage your money more effectively and pay down debt
The Takeaway
The average credit score in America is 717 using the FICO system, while the average VantageScore is 702. Knowing the factors that comprise a credit score, how the different scoring systems compare, and where your score stands can be helpful information. You can check your score and empower yourself with the knowledge to build it so you have access to the best lending terms possible.
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.
See exactly how your money comes and goes at a glance.
FAQ
How many Americans have an 800 credit score?
According to data collected by credit reporting agency Experian, 22% of Americans have a credit score of 800 or greater.
How common is a 750 credit score?
Approximately 25% of American have a credit score in the 750 range, according to data collected by credit reporting agency Experian.
Does anyone have a 900 credit score?
It’s impossible to have a 900 credit score, as both FICO and VantageScore models only go as high as 850.
What is the riskiest credit score?
Lenders may see a borrower with a “poor” credit score as a high risk. Poor credit scores fall between 300 and 579.
What is the most respected credit score?
While lenders use both VantageScore and FICO and consider them reliable, FICO is used in 90% of lending decisions.
What is a good credit score to buy a house?
Borrowers with higher credit scores are often in a better position to secure favorable rates on a home loan. Generally speaking, lenders require a credit score of at least 620 to buy a house with a conventional mortgage, though requirements vary based on the type of loan you’re pursuing.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
This content is provided for informational and educational purposes only and should not be construed as financial advice.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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The Federal Reserve, or “Fed,” can change the federal funds rate as a tool to sway the economy. For instance, when inflation is high, it can raise interest rates to attempt to curb overall demand in the economy, hopefully lowering prices. As of November 2024, the current federal funds rate is between 4.75% and 5.00%. That rate can affect other interest rates throughout the economy, such as those tied to mortgages, auto loans, and more.
There’s a connection between the Fed’s interest rate decisions, the national economy, and your personal finances. The Fed works to help balance the economy over time — and its actions and influence on monetary policy can affect household finances. Here’s what consumers should know about the Federal Reserve interest rate and how it trickles down to the level of individual wallets.
What Is the Federal Funds Rate?
The federal funds rate, or federal interest rate, is a target interest rate assessed on the bank-to-bank level. It’s the rate at which banks charge each other for loans borrowed or lent overnight.
The federal funds rate is not directly connected to consumer interest rates, like those that might be paid on a personal loan or mortgage. But it can significantly influence those interest rates and, over time, can impact how businesses and individuals access lines of credit.
How Is the Federal Funds Rate Set?
The Federal Open Market Committee (FOMC) sets the federal funds rate. The FOMC is a 12-member group made up of seven members of the Board of Governors of the Federal Reserve System; the president of the Federal Reserve Bank of New York; and four of the remaining eleven Reserve Bank presidents, who serve one-year terms on a rotating basis.
The FOMC meets a minimum of eight times per year — though the committee will meet more often than that if deemed necessary. The group decides the Fed’s interest rate policy based on key economic indicators that may show signs of inflation, rising unemployment, recession, or other issues that may impact economic growth.
The FOMC often slashes rates in response to market turmoil as an attempt to boost the economy. Lower rates may make it easier for businesses and individuals to take out loans, thus stimulating the economy through more spending. The Federal Reserve enacted a zero-interest rate policy in 2008 and maintained it for seven years to boost the economy following the Great Recession, for example.
On the other hand, the FOMC may raise interest rates when the economy is strong to prevent an overheated economy and keep inflation in check. Higher interest rates make borrowing more expensive, disincentivizing businesses and households from taking out loans for consumption and investment. Because of this, higher interest rates, theoretically, can cool the economy.
Current Federal Funds Rate
As noted above, the current federal funds rate is between 4.75% and 5.00% as of early November 2024. The FOMC raised interest rates rapidly throughout 2022 in an effort to bring down inflation, which was at the country’s highest levels since the 1980s. But in the fall of 2024, it issued a rate cut for the first time since the start of the pandemic in early 2020.
The federal funds rate is a recommended target — banks can ultimately negotiate their own rate when borrowing and lending from one another. Over the years, federal fund targets have varied widely depending on the economic outlook. The federal funds rate was as high as 20% in the early 1980s due to inflation and as low as 0.0% to 0.25% in the post-pandemic environment, when the Fed used its monetary policy to stimulate the economy.
How Does the Fed Influence the Economy?
The Federal Reserve System is the U.S. central bank. The Fed is the primary regulator of the U.S. financial system and is made up of a dozen regional banks, each of which is localized to a specific geographical region in the country.
The Fed has a wide range of financial duties and powers to take measures to ensure systemic financial and economic stability. These duties include:
• Maintaining widespread financial stability, in part by setting interest rates
• Providing financial services like operating the national payments system
The Fed has authority over other U.S. banking institutions and can regulate them in order to protect consumers’ financial rights. But perhaps its most famous job is setting its interest rate, otherwise known as the federal funds rate.
How Does the Federal Funds Rate Affect Interest Rates?
Although the federal funds rate doesn’t directly influence the interest levels for loans taken out by consumers, it can change the dynamics of the economy as a whole through a kind of trickle-down effect.
The Fed’s rate changes impact a broad swath of financial areas — from credit cards to mortgages, from savings rates to life insurance policies. The Fed’s rate change can affect individual consumers in various ways. They can also affect the stock market, which may have an outsized impact on those who are online investing or otherwise have money in the markets.
The Prime Rate
A change to the federal funds rate can influence the prime interest rate (also known as the Bank Prime Loan Rate). The prime interest rate is the rate banks offer their most creditworthy customers when they’re looking to take out a line of credit or a loan.
While each bank is responsible for setting its own prime interest rate, many banks choose to set theirs mainly based on the federal funds rate.
Generally, the rate is set approximately three percentage points higher than the federal funds rate—so, for example, if the rate is at 5.00%, a bank’s prime interest rate might be 8.00%.
Even for consumers who don’t have excellent credit, the prime interest rate is important; it’s the baseline from which all of a bank’s loan tiers are calculated.
That applies to a wide range of financial products, including mortgages, credit cards, automobile loans, and personal loans. It can also affect existing lines of credit that have variable interest rates.
Savings Accounts and Certificates of Deposit
Interest rates bend both ways. Although a federal rate hike may mean a consumer sees higher interest rates when borrowing, it also means the interest rates earned through savings, certificates of deposit (CDs), and other interest-bearing accounts will increase.
In many cases, this increase in interest earnings influences consumers to save more, which can help as an incentive to build and maintain an emergency fund that one can access immediately, if necessary.
How Does the Federal Funds Rate Affect the Stock Market?
While the federal funds rate has no direct impact on the stock market, it can have the same kind of indirect, ripple effect that is felt in other areas of the U.S. financial system.
Generally, lower rates make the market more attractive to investors looking to maximize returns. Because investors cannot get an attractive rate in a savings account or with lower-risk bonds, they will put money into higher-risk assets like growth stocks to get an ideal return. Plus, cheaper or more available money can translate to more spending and higher company earnings, resulting in rising stock performance.
On the other hand, higher interest rates tend to dampen the stock market since investors usually prefer to invest in lower-risk assets like bonds that may offer an attractive yield in a high-interest rate environment.
What Other Factors Affect Consumer Interest Rates?
Although the Federal Reserve interest rate can impact personal finance basics in various ways, it may take up to 12 months to feel the full effect of a change.
On a consumer level, financial institutions use complex algorithms to calculate interest rates for credit cards and other loans. These algorithms consider everything from personal creditworthiness to loan convertibility to the prime interest rate to determine an individual’s interest rate.
The Takeaway
The federal funds rate — or federal interest rate — set by the Federal Reserve is intended to guide bank-to-bank loans but ends up impacting various parts of the national economy—down to individuals’ personal finances.
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The average credit for 30-year-olds is 690, according to the most recent analysis of FICO® scores in 2024 by Experian.
Knowing how you compare with other borrowers is an interesting way to look at your finances. Perhaps you want to improve your credit score, or maybe just you’re wondering if your credit score is good enough to secure the financing you want. Either way, a better credit profile could translate into better lending terms and, ultimately, more money back in your pocket.
Here’s what you need to know about average credit scores by age 30 and steps you can take to boost your score.
Key Points
• The average credit score for 30-year-olds is 690, which is slightly below the national average of 717.
• A credit score of 690 is considered “good,” allowing individuals to qualify for mortgages and loans.
• Credit scores range from 300 to 850, with higher scores typically providing better loan terms.
• Factors such as payment history, credit utilization, and credit history length affect credit scores.
• Understanding credit scores can improve financial health and secure better lending terms.
Average Credit Score by Age 30
As mentioned, the average credit score for Millennials is 690. This is slightly lower than the national average FICO Score of 717, but that’s to be expected. After all, it takes time to build good credit, and a borrower’s credit score tends to increase with age.
If you have an average credit score of 690 by age 30, it falls within the “good” range. This means you’ll likely be able to qualify for a mortgage, car loan, and other types of financing applications, though you may not be offered the most favorable terms. (Saving up for a big-ticket item? A spending app can help you track savings and stay on top of recurring expenses.)
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What Is a Credit Score?
Taking a step back, it’s important to understand what a credit score is and where it comes from. A credit score is a three-digit number that lenders use to assess how risky it is to loan money to a borrower. Scores range from a low of 300 to a high of 850. In general, the higher your credit score, the more likely you are to get the best interest rate and loan terms.
There’s no starting credit score for those just starting to establish their credit history. The two main players — FICO and VantageScore — each look at a variety of factors to come up with a person’s credit score.
As of October 2023, the national average credit score across all ages is 717, according to FICO. That’s one point lower than earlier in the year, which could be the result of months of high interest rates and inflation. That said, 717 falls easily within the “good” credit score range and could help you qualify for more favorable lending terms.
Average Credit Score by Age
When broken down by age, you’ll find the average credit score as follows:
Age
Credit score
Generation Z (18-26)
680
Millennials (27-42)
690
Generation X (43-58)
709
Baby boomers (59-77)
745
Silent generation (78+)
760
Source:Experian
What’s a Good Credit Score for Your Age?
It’s common to want to see how your personal, professional, or financial track record compares to your peers. But that may not be the best approach for assessing your credit score. Instead, it can be helpful to see where your score falls on the standard 300-850 scale. A credit score of 670 or higher is generally considered good, regardless of a person’s age.
How Are Credit Scores Used?
Credit scores can be used in a number of ways. Let’s look at some common scenarios when your credit score may come into play:
• You’re applying for a loan. Whether you’re applying for an auto loan, mortgage, or personal loan, a lender will use your credit score to determine the risk associated with loaning you the money.
• A lender is determining your interest rate. Generally speaking, the better your credit score, the better interest rate you’ll be offered.
• A lender is setting your credit limit. The amount of credit you qualify for is based in part on your credit score. If you manage your credit well, you might qualify for a higher credit limit.
• You’re applying for car insurance. When quoting a car insurance rate, insurers often factor in your credit score along with other factors, like your driving history.
Factors Influencing the Average Credit Score
According to Experian, the average credit score has generally trended upward over time. This can be explained by a number of factors, including:
• Education. More people are aware of their credit scores and are paying their bills.
• Age. Data shows a direct correlation between higher credit scores and older generations.
• Economics. Experian data scientists point to steadily decreasing unemployment levels as one reason for the upward trend of credit scores.
• Credit utilization. Overall credit utilization ratios have increased to 30% (up from 28% a year ago) for all borrowers, which affects the average credit score.
• Delinquencies. Mortgage delinquencies are lower than they were before the pandemic, which could be a result of the low interest rates that were offered.
If your credit score isn’t where you want it to be, take heart. There are steps you can take to help boost your numbers over time.
• Pay your bills on time, every time. Whether you use a money tracker app to manage upcoming bills or go the autopay route, find a bill paying system that works for you.
• Manage your credit utilization. Lenders look at how much of your available credit you’re using. By paying off debt, you can lower your credit utilization ratio, which in turn can help improve your score.
• Keep accounts open. A long credit history can help strengthen your credit profile. If you have an older account in good standing, consider keeping it open.
• Check your credit report regularly. Mistakes happen. If one ends up on your credit report, take steps to address it right away. It’s a good idea to keep an eye on your credit score as well. You can get your score for free through banks, credit card issuers, and Experian.
How Does My Age Affect My Credit Score?
Technically speaking, your age doesn’t affect your credit score. However, credit scores do tend to increase with age. That’s because the longer a person lives, the more opportunities they have to build up a credit history, earn a higher income, and pay off debts.
At What Age Does Credit Score Improve the Most?
According to Experian’s 2023 findings, credit scores tend to improve the most between the ages of 59 to 77, when many Americans are either starting to think about retirement or settling into their golden years. (The average credit age among this age group is 745, which is considered very good.)
One possible explanation for the jump is that older people may have older credit accounts in their credit profile and, as a result, enjoy a higher average age of accounts. Also, people 59 and older typically have a more stable income and lifestyle, both of which can make bill paying and money management easier.
What Factors Affect My Credit Score?
Understanding what factors impact your credit score can go a long way toward helping you maintain a good score. Note that FICO and VantageScore use different factors and weightings when calculating a credit score. Let’s take a look at what goes into both scores.
A FICO Score, which is used in 90% of lending decisions, considers how a consumer handles debt. It weights scores according to the following categories:
• Payment history (35%)
• Credit utilization (30%)
• Length of credit history (15%)
• New credit inquiries (10%)
• Credit mix (10%)
Though there’s some overlap with FICO, a VantageScore is based on the following categories:
• Payment history (40%)
• Depth of credit (21%)
• Credit utilization (20%)
• Balances (11%)
• Recent credit (5%)
• Available credit (3%)
As you can see, while the weighting is different, both models pay close attention to how much credit you’re using, how well you’ve been paying on it, and how long you’ve been managing credit.
How to Build Credit
No matter how old you are, there are plenty of ways to build credit. As previously mentioned, on-time bill paying and a low credit utilization rate can both go a long way toward boosting your credit profile. But here are some other strategies to consider as you establish your credit.
• Become an authorized user. If someone is willing to take you on as an authorized user (your parents, for example), their payments may be reported on your credit history.
• Apply for a beginner credit card. A couple of options to consider: a student credit card, which is an unsecured card to help college students build credit, or a secured credit card, which requires a cash deposit as collateral.
• Consider a credit builder loan. A credit builder loan takes the loan amount and deposits it into a savings account for you. You’ll repay the loan in installments, and once it’s paid off, you’ll receive the money. On-time payments are reported to the credit reporting agencies.
• Look into an installment loan. Auto loans and personal loans are examples of installment loans that can help a qualified borrower build up their credit history.
• Enroll in a program that reports rental or utility payments. Find a service that reports your monthly rent or utility payments to the credit reporting agencies. Some services are free, but others may charge a fee.
Credit Score Tips
Looking for ways to help improve your credit score? Keep these tips top of mind:
• Stay on top of bill paying.
• Pay down debt.
• Keep track of your credit score and review your credit report at least once a year.
• See an error in your credit report? Dispute it with each credit bureau that has the mistake as well as the business that reported the inaccurate information.
• Write a goodwill letter to the creditor asking for negative (but accurate) information to be removed from your credit report. They’re under no obligation to honor your request, but it’s worth a shot.
The Takeaway
The average credit score by age 30 is 690, which is slightly lower than the national average score of 717. However, a borrower’s age doesn’t directly impact their credit profile. Rather, data shows that the older someone is, the more likely they are to have a higher credit score. That’s because they’ve had more time to build up their credit profile.
Regardless of your age, there are ways to help boost your credit score and potentially qualify for better lending terms. Some strategies include paying bills on time, managing how you use your available credit, and keeping older accounts that are in good standing open.
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.
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FAQ
What is a good credit limit for a 30-year-old?
The average credit limit for all credit cards for people in their 30s is $27,533, according to Experian.
Is 700 a good credit score for a 25-year-old?
A credit score of 700 at any age is considered good.
Is $10,000 a high credit limit?
Ten thousand dollars can be considered a good limit for people who have managed their debt and credit cards responsibly. To put that amount in perspective, the average limit for all credit cards combined is $29,855, according to Experian.
What credit limit can I get with a 750 credit score?
A 750 credit score is a good credit score, but it’s not the only piece of information lenders use to determine your credit limit. They consider a number of other factors, including your payment history, income, and credit utilization.
Can you have a $100K credit limit?
Though not common, it is possible to find a credit card with a limit of $100K. However, you’ll likely need to have good credit and demonstrate that you have the financial resources to support repayment. For example, a business that earns millions of dollars each year and has employees as authorized users on the card may be granted a higher credit limit.
What is a good credit score to buy a house?
In general, you’ll need to have a credit score of at least 620 to qualify for many types of mortgages.
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SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
