BACK

Credit Scores and Reports

FICO: Average credit score reaches all-time high of 704

Summary

The average FICO score among U.S. consumers has reached an all-time high of 704, according to a new FICO report

The editorial content below is based solely on the objective assessment of our writers and is not driven by advertising dollars. However, we may receive compensation when you click on links to products from our partners. Learn more about our advertising policy.

The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Please see the bank’s website for the most current version of card offers; and please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.

The average credit score among U.S. consumers has reached an all-time high of 704, according to a new report from FICO.

The new average is four points higher than the mean score of 700 that consumers attained in April 2017, when FICO last calculated a U.S. average. Experts say a credit score of 700 or higher is sufficient to qualify for most credit cards and secure favorable interest rates on mortgages and other loans.

Ethan Dornhelm, vice president of scores and predictive analytics at FICO, wrote in a Sept. 24 blog post that consumers’ growing awareness and education regarding credit could be a driver of the overall score improvement. He noted a February 2018 study by FICO and Sallie Mae that revealed people who frequently check their scores tend to have higher scores and make better financial choices.

Additionally, lenders have tightened their underwriting standards in the wake of the Great Recession. The average FICO score fell to a low point of 686 in October 2009.

See related: 18 things that hurt your credit score

Many consumers have gotten a credit score boost from changes in credit reporting standards that have gone into effect within the past two years. For instance, the three major credit bureaus – Equifax, Experian and TransUnion – no longer include tax liens or civil judgments in consumers’ credit reports.

Additionally, collection agencies and debt buyers are no longer allowed to report medical debts that are less than 180 days old.

FICO’s new data shows that 23 percent of consumers had one or more collection agency accounts on file as of April 2018, down from 25.8 percent in April 2017.

But Dornhelm also noted that delinquencies on bank-issued cards have ticked upward in recent years. The bank card delinquency rate rose from 7.1 percent in April 2016 to 8.2 percent in April 2018, per FICO.

What’s up next?

In Credit Scores and Reports

It’s getting easier to pay child support with a credit card

A growing number of counties are trying to make child support payments more convenient and reliable for recipients by enabling credit card payment

Published: September 24, 2018

See more stories
Credit Card Rate Report Updated: August 14th, 2019
Business
15.55%
Airline
17.50%
Cash Back
17.63%
Reward
17.50%
Student
17.69%

Questions or comments?

Contact us

Editorial corrections policies

Learn more

Join the Discussion

We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

The editorial content on CreditCards.com is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company’s business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.