Based on Experian’s latest data for Q2 2023, the average American credit score is a solid 716—and, when broken down by generation, scores stay in that ballpark.
What’s the bottom line? The majority of Americans are pretty good at managing their credit. How do you compare to your peers? Let’s take a look, and, even more importantly, explore ways to boost your credit score.
Gauge Your Credit Health
Here’s how Experian classifies credit scores:
- Poor: 300 to 579
- Fair: 580 to 669
- Good: 670 to 739
- Very good: 740 to 799
- Exceptional: 800 to 850
Now, let’s take a look at how different generations stack up:
- Gen Z (18 to 26): 680 Fair
- Millennials (27 to 42): 690 Good
- Gen X (43 to 58): 709 Good
- Baby boomers (59 to 77): 745 Very Good
- Silent generation (78+): 761 Very Good
It makes sense that older generations have credit scores above the national average which can be attributed to factors that determine your credit score like: length of credit history, payment history, amounts owed, open credit lines and credit mix.
Simply put, time has been on their side! They’ve had more time to build and manage their credit compared to younger Americans.
Why Good Credit Matters
What’s the bottom line? Better credit means more opportunity. With better credit you:
- Increase the likelihood of approval for credit cards, loans, and mortgages.
- Have access to better interest rates and more favorable loan terms when buying a car or home–saving money over the longterm!
- Gain a competitive edge when applying for jobs or rental opportunities
- Open doors to premium credit cards with attractive rewards and benefits.
Boost Your Credit Score
For both younger and older generations looking to establish or boost their credit, here are some strategies to consider.
The tried-and-true principles still apply: consistently pay your bills on time, manage your debt wisely, maintain a diverse mix of credit, and demonstrate responsible debt management. Think credit cards and loans (cars & home.)
But the good news! There are innovative alternatives to quickly boost your credit, like reporting your monthly rent!
Rent Reporting: Why Does It Work?
Reporting your rent provides a multi-faceted credit enhancement!
- By reporting up to 24 months of rent payment history, you immediately boost your credit–supercharging your credit profile.
- Continuously paying your rent reinforces a positive credit history, showcasing your financial responsibility, diversifying your credit mix, all without taking on additional debt.
Customers report an average increase of 40 points that can propel you into a higher credit category and open doors to new financial opportunities.
Whether you’re looking to build or improve your credit, understanding the mechanics of credit building and identifying ways to accelerate your credit building journey can set you confidently on the path to better credit.
