Many members of the younger generations will have lower credit scores since a credit score is something that must be built over time. You can observe that credit scores mostly rise when you look at the average credit score by age. According to badcredit.org, the typical credit score by age is as follows:
We can discuss a credit score in detail and why it is so significant now that you have a clear understanding of the typical credit scores by age, income, race, and gender.
Your credit score predicts your likelihood of making timely loan payments. Your credit score is calculated using a scoring or numerical model using data from your credit report. The range of your credit score is 300 to 850. The more creditworthy you appear to lenders, the more likely you will be approved for the loan you are applying for.
Score ranges and what they mean:
- 300 to 579: Poor – Your score is much lower than the national average, showing lenders that you are a hazardous borrower.
- 580 to 669: Fair — Although your score is below the national average for consumers, many lenders will still accept your loan application.
- 670 to 739: Decent — Most lenders deem this a good score as it is close to or slightly over the national average for customers.
- 740 to 799: Very Good – Your score is higher than the national average for consumers, showing lenders that you are a trustworthy borrower.
- 800 to 850: Excellent – Your score is significantly higher than the national average, showing lenders that you are a standout borrower.