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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.

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.

Where Can I Check My Credit Scores?

If you are wondering how to check your credit score without paying, there are a number of resources available for you:

•  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.

Recommended: What Is a FICO Score? FICO Score vs Credit Score

Why There Are Different Credit Scores

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.

Recommended: Why Did My Credit Score Drop After a Dispute?

What to Do If You Don’t Have a Credit Score

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.

Recommended: How Long Does It Take to Build Credit?

Why Your Credit Score Changed

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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Photo credit: iStock/

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.

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 .

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.

Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

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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.

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.)

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.

Lenders may use one or both of those scores to assess a borrower’s creditworthiness, so it can be helpful to understand the differences between a FICO Score and VantageScore.

Recommended: FICO Score vs. Credit Score

What Is the Average 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.

Recommended:How Often Does Your Credit Score Update?

How to Strengthen Your Credit Score

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.

See exactly how your money comes and goes at a glance.

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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Photo credit: iStock/Pekic

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.

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A debit card PIN is its personal identification number or code that allows you to securely conduct transactions, such as ATM withdrawals and purchases at retail locations.

A debit card is tied directly to a bank account. When you make a transaction with your debit card, the money is withdrawn from your account’s available balance. Read on to learn more about how PINs are used, how they can help keep your money safe, and other important details.

Understanding Debit Card PINs

A debit card is a card that is tied to a traditional or online bank account, usually a checking account, that allows you to conduct transactions in person and online.

When you use a debit card, you will usually be required to enter a numeric PIN, usually four digits long. PIN stands for personal identification number, and it is used as an extra level of security for making transactions with your debit card. Because the “n” in PIN stands for “number,” it is technically incorrect to talk about your debit card PIN number, since that would be “personal identification number number,” though many people still commonly refer to a PIN as a “PIN number.”

What Is a PIN and Why It’s Important

A PIN, again, is typically a four-digit number that is used when processing a debit card transaction through the debit network. A PIN helps to ensure the security of transactions used with your debit card. If you lose your debit card, nobody will be able to withdraw money from an ATM without also having your PIN.

How PINs Work With Debit Cards

As noted above, it’s possible to use most debit cards as either a debit card or a credit card, the latter of which can typically be processed without a PIN.

•  If you use your debit card at an ATM, you will need to enter your PIN to withdraw money, check your balance or access your account.

•  When you are using your debit card at a brick-and-mortar merchant, you typically need to enter your PIN. Many locations simply ask you to sign, as detailed below, but others will require you to enter your pin. If you want to get cashback as part of your transaction, you’ll also need to enter your PIN.

•  It’s possible to use your debit card without a PIN, processed through the credit card processing network associated with your card — usually either Mastercard or Visa. While you don’t need to enter your PIN, you will probably be required to sign to complete the transaction if you’re at a brick-and-mortar retailer. Or you might need to type in your address information if you are conducting an online transaction.

•  An important debit card fact: Choosing the “credit” option for your debit card transaction doesn’t mean that you are making a credit card purchase and potentially accruing interest. The transaction is just “put through” in a different way that may take a bit longer to clear. The funds still come straight out of your bank account.

•  However, the fact debit transactions can be processed as credit does mean that if you lose your debit card, you will want to contact your bank to report it lost as soon as possible. That can prevent someone from making unauthorized transactions simply by signing your name.

As you see, how PINs are used with debit cards can vary depending on the location and kind of transaction you are completing.

Creating and Managing Your PIN

You’ll usually create the PIN for your debit card when you first open your bank account.

•  Sometimes you will choose your own PIN, and in other cases the bank will assign you a PIN. If the bank sends you your PIN, it will often come in an unmarked envelope separate from your debit card. This reduces the risk that both your card and PIN will be intercepted in the mail on their way to you.

•  While you may create or be assigned a debit card PIN when your account is created, you typically have the ability to change your PIN at any time (often via the financial institution’s website or app). When you create or change your PIN, you’ll want to make sure to choose a secure PIN. Don’t choose common PINs like repeated numbers (such as 8888), alternating numbers (as in 2424), your birthdate or anniversary, or the last four digits of your account or card number.

•  If you forget your debit card PIN (yes, it happens), your bank may offer a way to access it via their website or app. If not, you could call customer service for assistance or visit a branch, if your financial institution has them.

One last note about PINs: You should avoid choosing the same PIN for multiple different accounts.

Recommended: How to Deposit a Check

PIN Safety and Security Measures

If someone has access to both your debit card and your PIN, they can access your bank account. That’s why protecting your PIN is one of the most important things that you can do to keep your bank account safe to avoid unauthorized transactions and bank fraud. Follow these guidelines:

•  Never give your PIN out to anyone (or if you have to, quickly change it afterwards).

•  When you’re at an ATM, make sure you physically block anyone that happens to be nearby from being able to see your PIN.

•  If you do think that someone may have access to your PIN or you suspect fraudulent activity, you should change your PIN and contact your bank immediately.

•  If you experience the loss of your card or any unauthorized transactions using your debit card, notify your bank as soon as possible. If you alert them within two business days, you are only responsible for the amount of unauthorized transactions or $50, whichever is less. If you notify your financial institution after those two business days, you could be responsible for up to $500. If you notice unauthorized transactions on your statement, it’s important to contact your bank within 60 days, or you could be liable for the transactions.

These steps can help you to keep your debit card and PIN secure and to avoid loss.

Using Your PIN: ATMs, Point-of-Sale, and Online Transactions

There are different scenarios where your PIN may or may not be required.

•  If you are using a debit card as a credit card, your PIN may not be required. This is because most online transactions are processed using the credit processing network associated with your card (such as Visa or Mastercard). You may be required to sign or, if conducting an online transaction, add other personal details, such as your address.

•  At an ATM, your PIN will be required before you can use your debit card to withdraw cash, check your balance or access your account.

•  If you are making a cardless withdrawal, however, you may or may not need your PIN; the app you are using may have you, say, scan a QR code to get cash at the ATM.

•  If you are using your debit card at a physical point-of-sale terminal at a merchant, your debit card PIN may or may not be required. If you enter your PIN, your transaction will be processed as a debit card, and you likely will not be required to sign the receipt.

•  If you bypass the PIN, your transaction could be processed over the credit network, and you may be asked to sign the receipt to verify the transaction. (A reminder: This doesn’t mean it’s added to your credit card bill; the funds still come from your bank account.)

Understanding the different kinds of transactions you can make with a debit card and its PIN can help you manage your money better and optimize its security.

Recommended: Emergency Fund Calculator: How Much Should You Save?

The Takeaway

A debit card PIN is usually a 4-digit number that helps to ensure the security of your account. In most cases, you can either use a debit card with your PIN (say, at retail locations or to withdraw funds from an ATM) or possibly by signing. Your PIN helps to keep your account secure. If you forgot your debit card PIN or suspect someone else has access to it, contact your bank’s customer service department immediately.

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FAQ

Can I use my debit card without a PIN?

Yes, you can often use your debit card without a PIN. Most debit cards are part of a credit card processing network (such as Visa or Mastercard). That means that you can “run” your card on these networks, without having to enter your PIN. You may be required to sign if completing a transaction in person or, if online, you might have to enter other details, such as your address.

How often should I change my debit card PIN?

One of the main purposes of having a debit card PIN is to help make sure that no unauthorized purchases are made to your account. You’ll typically change your debit card PIN if you lose your card or if you think someone might know your PIN.

What should I do if I think someone knows my PIN?

If you think that someone else knows your debit card PIN, it’s a good idea to change your PIN right away. You may be able to change your PIN through your bank’s website, app, or, if your account is at a brick-and-mortar bank, at a branch. In some situations, your bank may also send you a new debit card with new card numbers to safeguard your account.

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As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.20% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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