Many Americans are daily stressing about their credit scores. After all, your FICO is used to help determine everything from whether or not you qualify to purchase a vehicle, rent an apartment, buy a house, get approved for a loan; it's even a factor now on some auto insurance policies. So it's no wonder that people are concerned about where that FICO falls. Here is some good news: in 2019, the average FICO in the US was up 2 points. With the median score at 703, many Americans are now falling within that "good" range on the FICO scale. This is also incidentally a 10 point increase from 2010.
As 703 is considered a good score, this means that more people are qualifying for improved interest rates. And when applying for a credit card, having a score in the 700s versus say low 600s will make a difference in what type of card you ultimately do qualify for. A better FICO also gets you improved loan terms as well as APR.
A Few Findings
- The state with the highest average FICO was Minnesota—eight years running now. This year's average was 731.
- The state with the lowest this year was Mississippi at right around 667.
- Most Americans to date are averaging over 700: a whopping 59%; this type of percentage has never been seen before.
Credit Score Ranges
The actual scores can range. It will largely depend on which credit bureau your score is being pulled from Experian, Equifax or TransUnion. Regardless, it is a standard that is used by many for evaluation purposes. Lenders, in particular, will look closely at credit score to help determine whether or not loaning you money is, in fact, worth the risk. The ranges break down as follows:
- Very poor: 300 to 579
- Fair: 580 to 669
- Good: 670 to 739
- Very good: 740 to 799
- Excellent: 800 to 850
So where does your FICO fall? If you are looking for a small business loan and are consequently concerned about your credit score, there is still hope. First Union Lending looks beyond just a single number. We may have a business loan program to fit your needs. Call today!