The average credit score across the United States declined slightly in 2024, dropping to 717, according to data from FICO. This marked a one-point decrease from the previous year. FICO, which stands for Fair Isaac Corporation, provides one of the most widely used credit scoring models for lenders. The drop has been attributed to an increase in late payments and rising consumer debt, indicating that more people are struggling to manage their financial obligations on time.
Understanding FICO and VantageScore
Creditworthiness is typically assessed using models such as FICO and VantageScore. These scores range from 300 to 850 and are used by lenders to evaluate how likely a borrower is to repay debt. VantageScore was developed by the three major credit bureaus—Experian, Equifax, and TransUnion—as an alternative to FICO. In 2024, the average VantageScore was 702, slightly below the FICO average. While both models operate on similar scales, they may use slightly different methods to calculate scores.
Black Americans Have Lower Average Credit Scores
Credit score data show ongoing disparities across racial groups. According to Investopedia, Black Americans had an average credit score of 627 in 2024. In contrast, white and Hispanic communities reported higher median scores. Native American communities also experienced lower averages. These differences reflect longstanding structural issues, including access to credit, income gaps, and differences in debt management and financial education. The lower average scores can affect Black Americans’ access to housing, loans, and other financial services.
What Affects Your Credit Score
A number of factors determine a person’s credit score. The most heavily weighted factor is payment history, which accounts for 35% of the score. This reflects whether a person pays their bills on time. The next most important factor is credit utilization—how much credit a person uses compared to how much is available to them—which accounts for 30%. Other factors include the length of credit history, types of credit accounts (such as credit cards, loans, and mortgages), and the number of recent credit inquiries. Together, these shape a person’s overall credit profile.
Steps to Improve Credit Health
There are several steps individuals can take to raise or maintain their credit scores. One recommendation is to review credit reports regularly. Consumers can access free annual reports from each of the three national credit bureaus through AnnualCreditReport.com. Checking reports can help identify any inaccuracies or signs of fraud.
Reducing debt is another key action. Experts advise keeping credit utilization below 70% to avoid signaling potential overspending to lenders. Keeping older credit accounts open, even if not in active use, can help maintain a longer credit history, which contributes positively to the score.
Having a diverse mix of credit accounts, such as credit cards, car loans, or mortgages, can also be beneficial if managed responsibly. However, taking on new credit should only be done when necessary and within one’s financial capacity.
