COSTA MESA, Calif., Dec. 19, 2019 /PRNewswire/ -- Experian®, the leading global information services company, released key findings from its annual State of Credit report today revealing the average credit score hit an eight year high at 682. Experian's report provides a year-over-year view of average credit scores, debt, delinquencies and card balances. As we prepare for a new decade, this year's report took a close comparative look at how men and women manage credit and debt, shared a glimpse of the financial behaviors of each generation and ranked the states with the highest and lowest average credit scores.
According to the report, American's average credit score has increased two points year-over-year to 682. While people are taking on slightly more credit card, mortgage and nonmortgage debt year-over-year, delinquency rates are decreasing on average.
"We're seeing a promising trend in terms of how Americans are managing their credit as we head into a new decade with average credit scores increasing two points since 2018 to 682 – the highest we've seen since 2011," said Shannon Lois, Experian's head of analytics, consulting and operations. "Average credit card balances and debt are up year over year, yet utilization rates remain consistent at 30 percent, indicating consumers are using credit as a financial tool and managing their debts responsibly."
Highlights of Experian's State of Credit report:
Average number of credit
Average credit card
Average number of retail
Average retail credit card
Average mortgage debt
Average 30 days past due
Average 60 days past due
Average 90- 180 days past
"Understanding the factors that influence their overall credit profile can help consumers improve and maintain their financial health," said Rod Griffin, Experian's director of consumer education and awareness. "Credit can be used as a financial tool. Through this report, we hope to provide insights that will help consumers make more informed decisions about credit use as we prepare to head into a new decade."
Battle of the Sexes
When comparing the borrowing behaviors of men and women, Experian's State of Credit report revealed woman have a four-point lead over men with an average credit score of 686 compared to 682. While men and women both maintain a utilization rate of 30 percent, differences in how they manage credit include:
Experian's report revealed Gen Xers, millennials and Gen Zers tend to carry more debt (including mortgage, nonmortgage, credit card and retail card) than older generations and have higher delinquency and utilization rates.
Annual State Rankings
As part of the annual study, Experian also ranked states by average credit score in 2019. Minnesota, Vermont, South Dakota, New Hampshire and Massachusetts are the top-ranking states in the nation, with prime credit scores of 705 or more. Mississippi, Louisiana, Alabama, Texas and Oklahoma are the five lowest-ranking states, with credit scores below 660.
Top 5 highest average credit scores by state
Top 5 lowest average credit scores by state
Experian's analysis is based on a statistically relevant sampling of Experian's consumer credit database, available on the Experian Ascend Technology PlatformTM, from Q2 2017, 2018 and 2019. Analyzed credit files contained no personally identifiable information. Credit scores are based on VantageScore (range 300 – 850).
Experian is the world's leading global information services company. During life's big moments — from buying a home or a car to sending a child to college to growing a business by connecting with new customers — we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organizations to prevent identity fraud and crime.
We have 17,200 people operating across 44 countries, and every day we're investing in new technologies, talented people and innovation to help all our clients maximize every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.
Experian and the Experian marks used herein are trademarks or registered trademarks of Experian and its affiliates.Other product and company names mentioned herein are the property of their respective owners.
1VantageScore is a registered trademark of VantageScore Solutions, LLC.
2VantageScore range is 300 to 850.
Average debt for this study includes all credit cards, auto loans and personal loans/student loans.
Experian Public Relations
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Experian Public Relations
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