It is possible to have the best FICO score in the entire world. This score is a snapshot of a person's creditworthiness based on statistics about loan defaults. This score can vary depending on the individual, but it does not necessarily mean you're high-risk credit.
Silent Generation
The Silent Generation, which is the oldest group of consumers, has the highest credit score of any generation. This group has a higher credit score than the rest because they have been better at managing their credit over time. They also have lower credit cards and balances.
This group is also more financially secure because they are likely to retire after many years of experience. They also tend to have more investment income, so they are less likely to be reliant on paychecks. This is why they tend to have higher average scores than younger people.
Mississippi
The average credit score of the United States, 680, is good. Mississippi's average credit score is in the "good” category. However, Americans still have an average of 2.6 credit cards and three regular ones. The average American has less debt overall and credit card debt today than 10 years ago.
The good news? Mississippi isn’t the only state that has a low credit score. Mississippi's average credit score is 675. This is eight points higher than the previous year. And while this isn't the best news for those in the Magnolia State, it's still well above the national average.
Millennials
Credit scores are affected largely by credit history. Although the average millennial has a fico rating of 670, there are still risks. One study revealed that nearly a third of millennials were turned down by financial institutions for financial products in 2020. This statistic however motivated lenders to tighten requirements.
While the average credit score for all generations has been increasing over the last few years, the Millennials' credit score rose the most between 2019 and 2021. Their average score went up from 648 % to 667 %. The average score dropped slightly after that. The Silent Generation however, saw a modest decline with their score falling from 730-727. A higher credit score could open up many opportunities, such as obtaining lower-interest loans or securing a house.
Older Americans
FICO data shows that credit scores for older Americans are highest in their 60s to 70s. Their FICO(r) Scores increase by more than twenty points in this age group. This is a significant boost because their accounts are likely to be older and have a long track record of making payments. Many 60 year-olds have repaid their debt.
The average FICO(r), or credit score, of older Americans is higher than that of younger Americans. While younger consumers see a decrease in their score over the course of a decade, older consumers see an increase. For example, the average FICO(r) score of consumers in their 20s dropped by 11 points between ages twenty and thirty. However, older Americans saw a greater increase in their score because they grew up with higher levels of debt than the younger generation.