Average FICO Score in the U.S. Climbs to 715

The average FICO® Score in the United States reached 715 in 2023, marking a slight increase from 714 in 2022. This continues a decade-long trend of rising credit scores, reflecting the overall financial health of American consumers. Despite economic challenges, factors such as near-full employment, lower delinquency rates, and informed borrowing have contributed to this upward trend.

Credit Scores by Age and State

Credit scores have shown slight increases across most age groups, with the Silent Generation maintaining a stable average score of 760. Younger generations, such as Millennials and Generation Z, have also seen modest improvements in their scores. At the state level, average FICO® Scores have remained relatively stable, with some states experiencing minor increases.

Credit Utilization and Delinquency Rates

Credit utilization ratios have increased as lenders tighten credit limits. The average credit utilization ratio rose from 28% in 2022 to 30% in 2023. Delinquency rates, which had been unusually low during the pandemic, have returned to more typical levels. As of Q3 2023, 2.45% of credit card accounts were 30 or more days past due, up from 2.07% in Q3 2022.

Where Consumers Stand Heading Into 2024

As we approach 2024, consumers’ financial health remains strong, with average FICO® Scores continuing to rise. The average credit card balance increased by 10% from 2022 to 2023, while the average mortgage balance saw a 3.4% increase. Despite these increases, the overall trend indicates a slowing rate of debt accumulation, likely due to the easing of inflation.

Why Are Average Scores Higher Than 10 Years Ago?

Several factors have contributed to the steady increase in average FICO® Scores over the past decade. Decreasing unemployment levels, demographic changes, and improved credit education have all played a role. More consumers are now aware of the importance of maintaining good credit and are taking steps to pay their bills on time.

How to Improve Your Credit Score

Improving your credit score involves several key actions:

• Paying bills on time: Timely payments are crucial for maintaining a good credit score.
• Reducing credit card balances: Lowering your credit utilization ratio can have a positive impact on your score.
• Applying for credit only when needed: Avoid unnecessary credit inquiries, especially if you plan to make significant purchases like a car or home.

By following these steps, you can improve your credit score and enhance your financial health.

Contact O1ne Mortgage for Your Mortgage Needs

At O1ne Mortgage, we understand the importance of a good credit score in achieving your financial goals. Whether you’re looking to buy a new home or refinance your existing mortgage, our team of experts is here to help. Call us today at 213-732-3074 to discuss your mortgage needs and find the best solution for you.