Millennials Are the Driving Force behind Record-High FICO Scores
According to Experian’s newly-released Consumer Credit Review, Americans now have an average credit score of 703. Over 59% of consumers report a credit score above 700, the highest volume in recorded history. Furthermore, the number of Americans with a perfect credit score of 850 is now 63% higher than it was in the wake of The Recession.
What’s fueling this surge of good credit? Millennials. The adults who are now 24-39 years old are now reaching their “credit stride,” as Experian noted. Since 2012, Millennials have seen a 25-point increase in their average credit scores, which is more than any other generation.
As Millennials continue to improve their credit, the average age for having a ‘good’ credit score declines. In 2012, the average age of someone with a credit score over 700 was 62. Now the average age is 54. The age in which consumers reach their peak credit score has also declined. It was 89 in 2012, but now it is 78 years old.
Debt levels increased slightly between 2018 and 2019, including mortgages, credit cards, student loans, retail cards, and auto loans. The only category to see a decline was personal loans, with average balances dropping from $16,345 to $16,259. The number of Millennials with mortgage debt increased 76% in the last five years, suggesting that Millennials are building equity for their future.