What Is the Average Credit Score for a 19-Year-Old?

A credit score provides a numerical summary of an individual’s creditworthiness, serving as a key indicator for lenders to assess the likelihood of on-time debt repayment. This three-digit number, typically ranging from 300 to 850, plays a significant role in personal finance by influencing access to various financial products.

Understanding Credit Scores

A credit score is a statistical analysis used by lenders and financial institutions to determine the creditworthiness of a person. It helps lenders decide whether to extend or deny credit, and at what terms, including the interest rate. The two most common credit scoring models in the United States are FICO and VantageScore, both of which generally use a score range of 300 to 850. A higher score indicates a lower risk to lenders, making an applicant more appealing.

Scores are categorized to provide a general understanding of credit health. For FICO Scores, a range of 300 to 579 is considered poor, 580 to 669 is fair, 670 to 739 is good, 740 to 799 is very good, and 800 to 850 is exceptional. VantageScore 3.0 has slightly different groupings: 500 to 600 is poor, 601 to 660 is fair, 661 to 780 is good, and 781 to 850 is excellent.

Average Scores for Young Adults

The average credit score for young adults (18-25) tends to be lower than older age groups. For individuals in Gen Z (ages 18-25), the national average FICO Score is around 680. Experian data from June 2024 indicates an average credit score of 681 for 18-year-olds, which falls into the “good” category for FICO Scores. VantageScore data from September 2024 also reported an average of 712 for 18-year-olds.

These scores are typically lower because young adults often have limited credit history and fewer types of credit accounts established. Building a comprehensive credit history takes time. While a 680 score is considered good, it might result in higher interest rates or less favorable terms on loans compared to those with very good or excellent credit scores.

Components of Your Credit Score

Credit scoring models evaluate several factors from an individual’s credit report to generate a score.

Payment History

Payment history is the most significant factor, accounting for approximately 35% of a FICO Score and up to 40% of a VantageScore. This component assesses whether bills have been paid on time, as consistent on-time payments are a strong indicator of financial reliability. Late payments, especially those over 30 days past due, can significantly reduce a score and remain on a credit report for up to seven years.

Credit Utilization

The amount of debt owed, also known as credit utilization, is another substantial factor, making up about 30% of a FICO Score and 20% of a VantageScore. This refers to the percentage of available revolving credit being used. Lenders generally prefer a credit utilization ratio of 30% or less, as a lower percentage suggests responsible credit management.

Length of Credit History

The length of an individual’s credit history contributes about 15% to a FICO Score and around 20% to a VantageScore when combined with credit mix. This factor considers the age of the oldest account, the age of the newest account, and the average age of all accounts. A longer history of successfully managing credit accounts reflects higher responsibility.

New Credit

New credit, including recent applications and newly opened accounts, accounts for approximately 10% of a FICO Score. Opening too many new accounts in a short period can be viewed as a higher risk and may temporarily lower a score.

Credit Mix

The credit mix, or the variety of credit accounts an individual holds, makes up about 10% of a FICO Score. This includes a combination of revolving credit, such as credit cards, and installment loans, like auto loans or student loans. Managing different types of credit responsibly can positively influence a credit score.

Building and Improving Credit

Young adults can take specific steps to establish and enhance their credit scores.

Authorized User

Becoming an authorized user on a trusted family member’s credit card can be a beneficial starting point. This allows the individual to benefit from the primary cardholder’s positive payment history, provided the account is well-managed.

Secured Credit Card

Applying for a secured credit card is another effective strategy. This requires a cash deposit that typically acts as the credit limit. This minimizes risk for the lender and allows the cardholder to build credit through regular, on-time payments, as activity is reported to credit bureaus.

Credit-Builder Loan

A credit-builder loan functions somewhat in reverse of a traditional loan. The lender holds the loan amount, usually between $300 and $1,000, in a savings account or certificate of deposit while the borrower makes regular monthly payments over a period typically ranging from 6 to 24 months. Once the loan is fully repaid, the borrower receives the funds, and the consistent, on-time payments are reported to credit bureaus.

Consistently paying all bills on time, including utilities and rent if reported, is important, as payment history is the most influential factor in credit scoring. Maintaining low credit utilization, ideally below 30% of available credit, is also important for a healthy score. Avoid opening multiple new credit accounts simultaneously, as each new inquiry can temporarily lower a score.

Monitoring Your Credit

Regularly checking credit reports is important for maintaining financial health. Individuals are entitled to a free copy of their credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once every 12 months through AnnualCreditReport.com. Reviewing these reports allows for the identification of any inaccuracies or fraudulent activity that could negatively impact a credit score.

If an error is discovered on a credit report, it is important to dispute the information with both the credit bureau and the business that reported it. This process involves explaining the discrepancy in writing and providing supporting documentation. Many credit bureaus offer online dispute processes, or disputes can be sent via mail. Various free credit monitoring services and tools are also available, often provided by credit card issuers or personal finance websites, which can help track changes to a credit report and score over time.