Credit scores seem to be the magic 3-digit number that determines if you can get approved for a loan and how much that loan will cost.   In large part, your credit scores can determine what you can (and cannot) buy and how much those things could cost you.  The average credit scores can vary by geographic area, income, even by age.  In a recent article by Alina Comoreanu, Senior Researcher published in WalletHub, the average FICO score across the United States is 699 and the average VantageScore ranges from 669 – 699.

Here are some of the highlights of the information:

  • The average credit score in Illinois is 671
  • The average credit score in Chicago is only 648
  • By region, the Midwest has the highest average credit scores at 680
  • The South has the lowest average credit scores at 657

For more information how to check your credit score CLICK HERE

Income has a large impact on average credit scores.

  • Consumers with an Annual Income of $30,000 or less have an average credit score of 590
  • Consumers with an Annual Income of $30,001-$49,999 have an average credit score of 643
  • Consumers with an Annual Income of $50,000-$74,999 have an average credit score of 737

To read the complete article in WalletHub click here


2019 Average Credit Score Update!

Stats provided by Equifax

The average FICO® Score* in the U.S. is 703 according to data from Experian from the second quarter of 2019. Many adults know their FICO® Scores, but not everyone understands how they compare against other Americans.

According to recent data released by Equifax average credit scores in the US have consistently been on the rise! This is great news since your credit scores are tied to so many financial factors such as:

  • Housing
  • Auto Loans
  • Interest Rates
  • Utility Deposits
  • Employment Opportunities
  • and much more

The rise of credit scores can be attributed to several factors such as FICO® Scoring model changes. Overall, we believe that most consumers have become more “credit conscious” meaning they are starting to take steps to improve their credit.


How Credit Scores Are Calculated

FICO® Scores are calculated by a complex algorithm using the data from your credit history to determine the likelihood of you going 90 Days late on your obligations. These include factors such as payment history, credit utilization, and age of credit history, among other criteria, and then scored accordingly.

FICO® Scores are based on five types of information found in your credit report:

Payment History: Payment history is the most important aspect of your credit report and shows whether you have paid your credit accounts on time.

Amounts Owed: How much debt you have is is the second most important category, including the evaluation of how much of your available revolving credit you are using each month.

Length of Credit History: The length of your credit history is based on how long you have had credit accounts open. A more established credit history usually equates to lower risk.

Recent Activity: This category looks at how many “inquiries” you have, how many times you have applied for credit in the past 12 months.

Credit Mix: Your credit mix is based on how many different types of credit accounts you have, including mortgages, credit cards, auto loans, and installment loans.

Though these are the five factors used in determining a FICO® Score, it is important to remember that lenders often look at everything in a credit report along with other information on your credit application, such as your current debt-to-income ratio for example.


Are Your Scores Below the National Average?

We can help! Click the link below to see how Illinois Credit Services can help you repair the health and accuracy of your credit reports and scores!

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