Average U.S. credit scores climb to 695
according to Experian’s State of Credit report and new HOPE
Financial Wellness Index
As we end the second summer since the arrival of COVID-19,
Experian® today announced key findings from its 12th annual State
of Credit report. This year’s report also serves as a launch for
Operation HOPE’s all-new HOPE Financial Wellness Index, which will
help shine a consistent light on the current state of consumer
credit. Despite a challenging year and a half, the new data shows
consumers are managing credit well with average credit scores
climbing seven points since 2020 to 695 – the highest point in more
than 13 years.
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Average U.S. credit scores climb to 695
according to Experian’s State of Credit report and Operations
HOPE's new HOPE Financial Wellness Index (Graphic: Business
Wire)
According to Experian’s report, many consumers were managing
credit well before the pandemic’s arrival and the accommodations
afforded by the Coronavirus Aid, Relief and Economic Security
(CARES) Act may have helped consumers protect their financial
health. At the same time, stay-at-home orders and record savings
levels1 may have contributed to lower unsecured and total debt
levels, lower credit utilization rates and fewer missed
payments.
This year, Experian is partnering with Operation HOPE – the
nation’s largest nonprofit dedicated to improving financial
literacy – to launch the HOPE Financial Wellness Index, which
highlights the average credit score in every state and city.
According to the index, consumers in Minnesota have the highest
credit scores with an average of 726, followed by Vermont (719),
New Hampshire (718), Washington (717) and Massachusetts (716).
States with the lowest credit scores were found in the south,
including Mississippi (666), Louisiana (669), Alabama (672),
Oklahoma (672) and Texas (673).
The HOPE Financial Wellness Index will be updated regularly and
will be used to develop programming and identify communities most
in need of financial education and resources.
“We believe credit education plays an important role in driving
financial inclusion and helping consumers reach their fullest
potential,” said Alex Lintner, President Experian Consumer
Information Services. “While these findings are positive, we
recognize they do not tell the full story and many consumers face
financial obstacles due to a limited credit history. We are
committed to working with consumers, as well as our partners like
Operation HOPE, to improve financial equity and access.”
Given the unique circumstances of 2020, this year’s report
compared credit trends over the last three years. While consumers
took on more mortgage and auto debt, score improvements were
supported by fewer missed payments, lower credit utilization rates
and reduced card balances and total debt levels year-over-year and
prior to the pandemic’s arrival.
Highlights of Experian’s State of Credit report include:
2021 State of Credit
Report
2019
2020
2021
Average VantageScore® 2
682
688
695
Median VantageScore
687
697
707
Average number of credit cards
3.0
3.0
3.0
Average credit card balance
$6,494
$5,897
$5,525
Average revolving utilization rate
30%
26%
25%
Average number of retail credit cards
2.50
2.42
2.33
Average retail credit card balance
$1,930
$2,044
$1,887
Average nonmortgage debt
$25,057
$25,483
$25,112
Average mortgage debt
$210,263
$215,655
$229,242
Average auto loan or lease debt
$19,034
$19,462
$20,505
Average 30–59 days past due delinquency
rates
3.8%
2.4%
2.3%
Average 60–89 days past due delinquency
rates
1.9%
1.3%
1.0%
Average 90–180 days past due delinquency
rates
6.6%
3.8%
2.5%
“While consumers on average are managing their credit histories
well, we know there are many communities in critical need of more
financial education and resources,” said John Hope Bryant,
Operation HOPE founder and CEO. “By helping people raise their
credit scores, we are empowering them to take advantage of one of
our nation’s most democratic tools. From housing and employment to
healthcare and education, credit worthiness can be leveraged to
improve our overall quality of life. We’re committed to using the
HOPE Financial Wellness Index as a force for good in the
communities we serve.”
Understanding generational differences
State of Credit also spotlights how each generation is managing
their debts, showing scores have improved for every generation
year-over-year. This trend is attributed to declining utilization
rates and fewer missed payments. Credit utilization rates have
declined for nearly every generation since 2019 except Gen Z who
saw a slight uptick year-over-year. Similarly, credit card balances
decreased for consumers of all age groups except Gen Z who
increased their balances by $115 year-over-year.
Across the board, consumers are missing fewer payments, with
notable improvements seen among the youngest consumers. Gen Z
decreased their 90 – 180 days past due delinquency rate by 29
percent year over year to 1.73 in 2021. This is a 72 percent
decrease from the same period in 2019. Millennials also decreased
their 90 – 180 days past due delinquency rates to 1.73 percent in
2021, down from 4.4% in 2021 and 10.6 percent in 2019.
Additional 2021 generational findings from Experian’s State of
Credit report include:
2021 findings by
generation
Gen Z
Gen Y
Gen X
Boomers
Silent
Average VantageScore®
660
667
685
724
730
Median VantageScore
674
678
699
755
741
Average number of credit cards
1.7
2.7
3.3
3.4
2.7
Average credit card balance
$2,312
$4,569
$7,236
$6,230
$3,821
Average revolving utilization rate
31%
30%
30%
21%
13%
Average number of retail credit cards
1.6
2.1
2.5
2.5
2.1
Average retail credit card balance
$1,125
$1,819
$2,214
$1,887
$1,329
Average nonmortgage debt
$12,524
$28,317
$32,898
$24,136
$11,725
Average mortgage debt
$192,276
$255,527
$259,100
$198,203
$163,254
Average 30–59 days past due delinquency
rates
2.1%
3.1%
3.0%
1.8%
1.1%
Average 60–89 days past due delinquency
rates
1.0%
1.3%
1.3%
0.8%
0.5%
Average 90–180 days past due delinquency
rates
1.7%
3.2%
3.4%
2.0%
1.3%
A strong credit history and responsible credit management can
help consumers save thousands of dollars over a lifetime. For
example, a person with a low credit score may pay close to $3,000
more in interest to purchase a $10,000 used car3 and a person with
a subprime credit score may pay $241 more per month or $86,503 more
over the life of a 30-year fixed-rate mortgage loan than a person
with a score of 760 or above4.
“Understanding the information included in your credit report
and how it impacts your credit scores is one of the best ways to
protect your financial health,” said Rod Griffin, senior director
consumer education and advocacy at Experian. “I encourage consumers
who are looking to improve or maintain their credit scores to check
their credit report regularly and take advantage of the free
resources Experian has available to help.”
In addition to the free weekly credit report at
annualcreditreport.com, Experian also offers consumers free access
to their credit report and ongoing credit monitoring at
Experian.com.
Additional credit education resources and tools
- Join Experian’s #creditchat hosted by @Experian on Twitter with
financial experts every Wednesday at 3 p.m. Eastern time. Bilingual
and Spanish speakers are also invited to join Experian’s monthly
#ChatdeCredito hosted on Twitter at 3 p.m. Eastern time beginning
September 16.
- Visit the Ask Experian blog for answers to common questions,
advice and education about credit.
- Add positive telecom, utility and streaming service payments to
your Experian credit report for an opportunity to improve your
credit scores by visiting www.experian.com/boost5
- For additional resources, visit
http://www.experian.com/consumereducation
Analysis methodology
Experian’s analysis is based on a statistically relevant
sampling of Experian’s consumer credit database, available on the
Experian Ascend Technology PlatformTM, from Q2 2019, 2020 and 2021.
Analyzed credit reports contained no personally identifiable
information. Credit scores are based on VantageScore (range
300–850).
About Experian
Experian is the world’s leading global information services
company. During life’s big moments — from buying a home or a car to
sending a child to college to growing a business by connecting with
new customers — we empower consumers and our clients to manage
their data with confidence. We help individuals to take financial
control and access financial services, businesses to make smarter
decisions and thrive, lenders to lend more responsibly, and
organizations to prevent identity fraud and crime.
We have 17,800 people operating across 44 countries, and every
day we’re investing in new technologies, talented people and
innovation to help all our clients maximize every opportunity. We
are listed on the London Stock Exchange (EXPN) and are a
constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global content
hub at our global news blog for the latest news and insights from
the Group.
Experian and the Experian trademarks used herein are trademarks
or registered trademarks of Experian and its affiliates. Other
product and company names mentioned herein are the property of
their respective owners.
About Operation HOPE
Since 1992, Operation HOPE has been moving America from civil
rights to "silver rights'" with the mission of making free
enterprise and capitalism work for the underserved—disrupting
poverty for millions of low and moderate-income youth and adults
across the nation. Through our community uplift model, HOPE Inside,
which received the 2016 Innovator of the Year recognition by
American Banker magazine, Operation HOPE has served more than 4
million individuals and directed more than $3.2 billion in economic
activity into disenfranchised communities—turning check-cashing
customers into banking customers, renters and homeowners, small
business dreamers into small business owners, minimum wage workers
into living wage consumers, and uncertain disaster victims into
financially empowered disaster survivors. Project 5117 is our
multi-year four-pronged approach to combating economic inequality
that aims to improve financial literacy, increase business role
models and business internships for youth in underserved
communities, and stabilize the American dream by boosting FICO
scores. Operation HOPE recently received its seventh consecutive
4-star charity rating for fiscal management and commitment to
transparency and accountability by the prestigious non-profit
evaluator, Charity Navigator.
For more information: www.OperationHOPE.org. Follow the HOPE
conversation on Twitter, Facebook and Instagram.
1 https://www.bea.gov/data/income-saving/personal-saving-rate 2
VantageScore is a registered trademark of VantageScore Solutions,
LLC. VantageScore range is 300 to 850. 3
https://www.urban.org/sites/default/files/publication/99021/what_is_the_cost_of_poor_credit_1.pdf
4
https://www.fool.com/the-ascent/banks/articles/heres-how-much-bad-credit-will-really-cost-you/
5 Results may vary. See Experian.com for details
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210908005043/en/
Amanda Garofalo
Experian Public Relations 1 714 460 3739
amanda.garofalo@experian.com
Lalohni Campbell Operation Hope Public Relations 404-593-7145
la@persemediagroup.com
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