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FICO Scores vary a lot depending on the age group you’re researching. This data is accurate as of the 2nd quarter of 2019. Let’s check out the credit scores by age group.
Age 20-29 - 662 Credit Score Average
Age 30-39 - 673 Credit Score Average
Age 40-49 - 684 Credit Score Average
Age 50-59 - 706 Credit Score Average
Age 60+ - 749 Credit Score Average
How Are Credit Scores Calculated?
There’s only 2 main credit scoring companies in the United States, we’ve talked about FICO already, the other is called VantageScore. While FICO and VantageScore are similar, they’re not identical. If you want to improve your credit scores, you need to know how credit scores are calculated.
- Credit Inquiries - Credit inquiries refer to how many times you apply for new credit. The more times you apply for credit, the more inquiries that are added to your account. It takes 2 full years for 1 inquiry to be removed from your credit report. This is why you always want to apply for credit you need versus credit you want.
- Credit Mix - The last credit score ranking factor from FICO is credit mix. This refers to the amount of different credit and loan accounts you have in your credit report. FICO wants you to have a good mix of credit cards and loans.
What Credit Scores Are Considered “ideal”?
With that being said, what credit scores are ideal?
Obviously, you want the best credit score you can get and if you focus on the 5 credit score factors above, you’re going to give yourself the best possible credit score.
If you’re using your credit wisely and you only apply for credit when you need it, you will have a better chance to get credit cards and loans. If you have that long credit track record, you’re likely going to be at a 650 credit score or higher. As we said earlier, every scenario is different, so we’re going based on our knowledge here.
To our point, an ideal credit score can be 675 for some of you and 705 for others. You want to shoot for the best credit scores you can get, so always focus on those 5 factors that determine your FICO scores.
Monitor Your FICO Scores