Is Your Credit Score Better or Worse Than the Average American's?

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Your credit score is something you may not think about on a daily or weekly basis. Usually, people are inclined to wonder about their credit scores when they're gearing up to borrow money or apply for a new credit card .

But the reality is that the higher your credit score is, the more likely you are to get approved for a loan or credit card offer. And you might also snag a lower borrowing rate that makes your debt more affordable. So it's a good idea to have a sense of what your credit score looks like and whether it needs a boost.

You may also be curious as to what the average American's credit score looks like so you can see how yours compares. And to the end, here's some data you might find helpful.

The average American's credit score is good, but not great

As of 2023, the average U.S. credit score was 715, says Experian, one of the three credit reporting bureaus. A score of 715 is considered "good" by Experian's standards. However, a "very good" credit score is a 740 to 799, while a score of 800 up to a perfect 850 is "exceptional."

This means that while there's nothing wrong with having a credit score of 715, if that's about what yours is, it could pay to work on boosting it. Doing so could mean opening up more borrowing options -- and more affordable borrowing rates.

How to boost your credit score

If your credit score is lower than or similar to the average American's, then boosting it is a good idea. And even if it's higher, it could still be beneficial to boost your score into the "very good" or "exceptional" range.

However, you should know that once your credit score gets to 800, there's little sense in stressing yourself out to raise it further. Most consumers don't have perfect credit, and you're likely to have the same results if you're applying for a loan with a score of 805 vs. 850.

But let's get back to boosting your credit score. There are a few ways you can go about it, but the thing to focus on most is your payment history, since it carries more weight than any other factor in the course of calculating your credit score. Your payment history speaks to how timely you are with your bills. And so paying incoming bills on time could help your score improve tremendously.

Another way to raise your credit score is to keep your credit utilization low. Utilization is the amount of available credit you're using at once. Keeping your credit card balances to 30% of your total credit limit or less is generally good for your score, so it pays to whittle down any existing balances you have. Ideally, though, you should aim to pay off your balances in full every month to avoid racking up interest.

Finally, make a point to check your credit report for mistakes every few months. You're eligible for a free copy from each of the three credit bureaus on a weekly basis, though checking every week would mean going to a bit of an extreme. If you see a mistake that paints you in a negative light -- for example, a late payment that was actually on time -- correcting it could lead to a nice bump in your credit score.

It's interesting to see what credit score the average American has. But even if yours is higher, it could still pay to work on raising it. And if it's lower, don't despair. With a bit of effort, you can work your way up toward a better credit score and enjoy the perks that come with it.

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