So, why do credit scores vary so much based on age groups? A lot of this has to do with what’s going on in the average person’s life.
In your 20s, your credit age is still very young. This means your average credit age could be just a year or two old. Every time you take on a new credit card or debt while in your 20s, it can make a significant impact on your credit’s average age. Also, in your 20s you’re still in the process of building a credit profile from scratch.
In your 30s, your credit ticks upward because you’ve had 10 years to establish a good payment history and average credit age. At this point, you’ve also likely established a better mixture of debts, including credit cards, car loans and maybe even a mortgage, which helps improve your credit.
As you continue moving through the years, the average age of your credit continues to rise and the account mix improves. In your 40s through 50s, you are also in your prime earning years, so your income has likely improved significantly. This higher income can lead to higher credit limits, which lowers your utilization ratios and increases your credit score.
In your 60s, you’re nearing or already heading into retirement and reduced your debt in preparation for living on a fixed income. The law is also on your side, as the Equal Credit Opportunity Act may prohibit creditors from discouraging you from applying for credit due to age. In fact, the ECOA allows the credit scoring models to favor certain age groups, which happens to be those over 62 years old.
To summarize, the average FICO credit score by age is as follows:
- 20-29: 662
- 30-39: 673
- 40-49: 684
- 50-59: 706
- 60+: 749
