American consumers' average FICO credit score has been increasing steadily since 2013. In April 2021, it is expected to hit 716. This number stayed the same over the following year. If your credit score is 716 or higher, you are usually in the "good" range regarding loans. Almost anyone can raise their credit score, regardless of age, location, or income. Still, not everyone in a particular group (such as age, location, or social status) is affected by this trend. If true, could you explain where, when, and why credit scores often increase? To answer this question, we will examine how age, location, and wealth affect the average FICO credit score.

Average Credit Score by Age:Even though FICO considers your age, the way it does so may surprise you. Instead, it uses a method that is easy to understand and based on common sense. The typical age of your credit history is more important than the number of times the sun has gone around the earth in your lifetime. There is no link between a person's age and their credit score. This means a younger person could have a high score while an older person could have a much lower score. The average credit score, on the other hand, gets better over time. In 2021, the average credit score for people ages 18 to 24 was 679, while the average credit score for people 75 and higher was 760.2.Average Credit Score by State:In April 2021, FICO data showed that the average credit score in 31 states was better than that in the rest of the country, which was 716.3. It was found that, on average, the credit scores of states in the Midwest and New England were better than those in the South and West.In the meantime, WalletHub study found that people who live in the South often have lower credit scores. The average credit score in the Southeast was 702, while only 696 points in the Southwest. On the other hand, Mississippi people had the worst credit scores of anyone in the country, with an average score of 681.4. For this study, several finance experts were asked their thoughts, and all agreed that a person's place of living did not affect their credit score. Instead, it's possible that the better average credit scores in different places are due to differences in other things.

Average Credit Score by Income:Even though money wasn't a factor in figuring out credit scores, A November 2020 Federal Reserve Bank of New York survey found that the average credit score increased with income. This result backs up a 2018 finding by the Federal Reserve that there may be a "moderate correlation" between income and credit scores. In 2018, the study was done.The following example shows how the results of the study by the New York Fed can be used. The New York Federal Reserve says that a person has "low income" if their family income is less than 80% of the typical income for the local area where the person lives. Like how old you are and where you live, income is not a straight factor in figuring out your credit score, even though the two seem linked. Why? If your pay is low, it may be easier to meet your financial responsibilities. If it's very high, though, it may be more accessible. This is just one possible reason why the trouble is happening. Obviously, this is different for each person and depends on their overall debt. If you make $30,000 a year, it's much less likely that you'll be able to pay off $15,000 in credit card debt than if you make $100,000 a year. Why your credit score matters:Your credit history will be considered when granting a loan or line of credit. Landlords often check the credit records of people who want to rent from them as part of the application process. Cell phone companies and other service providers often do credit checks. Some businesses check applicants' credit records to ensure they are who they say they are.Your application could be denied if it has terrible information about your credit past that the lender doesn't like. Low credit score?, you might have to pay more interest on mortgages, car loans, and credit card debt. Even if your loan request is accepted, this will remain true. Over time, it will add up to a lot of money.How to improve your credit score:Your credit score determines how financially independent you are. It determines vehicle insurance rates, credit card approvals, and mortgages. Bad credit makes daily tasks harder. But there are always ways to make it better, like the ones below:

• Every month, any loans, credit card debt, or other responsibilities that need to be paid must be paid on time.
• Pay off your financial obligations and pay any bills that are past due.
• If you don't already need more credit, it doesn't make sense to look for more.
• Only close the credit cards that you are using right now.

If this is your first time taking money, it can be hard to build a credit background, making it hard to borrow money in the first place if you need it. Because of this, many companies that give out credit cards offer customers other ways to get credit, like protected credit cards, that they can use while building or improving their credit records. These are also some of the best credit cards we suggest for people who have never had one.Conclusion:Despite the association between average credit scores and socioeconomic status, this does not affect an individual's credit score. Five financial factors affect your credit score. Age and income may affect your ability to meet these standards. Different regions' median income and educational attainment might affect a country's credit rating. Responsible financial management can help anyone, regardless of age, income, or location, build credit.