What Is the Average Credit Score for a 22-Year-Old?

A credit score is a numerical representation of an individual’s creditworthiness, typically a three-digit number. This score is a crucial indicator for lenders, landlords, and other entities to assess the likelihood of an applicant repaying borrowed money or fulfilling financial obligations. A strong credit score can open doors to more favorable loan terms, lower interest rates, and easier approvals for credit cards, mortgages, or even rental agreements. Conversely, a low score can limit access to these financial products and services, often resulting in higher costs.

Average Credit Score for 22-Year-Olds

The average credit score for a 22-year-old falls within the “good” range. The average FICO score for individuals aged 18 to 26 is around 680, and the average VantageScore for those in their 20s is around 662. These averages are lower than those of older demographics, where the overall U.S. average FICO score is 715 and VantageScore is 702.

This lower average for young adults is primarily due to a shorter credit history. Establishing a comprehensive credit profile takes time, and 22-year-olds have fewer years of credit activity compared to older individuals. They may also have a limited variety of credit accounts, and student loan debt can impact their early scores. While 680 is considered a good score, individual scores can vary based on personal financial habits.

Credit scores are categorized into ranges to indicate credit quality. For FICO scores (300-850), “good” is 670-739, “fair” is 580-669, and “very good” is 740-799. VantageScore (300-850) classifies 661-780 as “good” and 601-660 as “fair.”

Factors Influencing Credit Scores for Young Adults

Several factors determine a credit score, uniquely impacting young adults due to their nascent financial profiles. Payment history holds the most significant weight, accounting for about 35% of a FICO score and 40% of a VantageScore. Even a single missed payment can disproportionately affect a short credit history. Consistent, on-time payments across all credit obligations are important for young adults building credit.

Credit utilization, the amount of credit used compared to total available credit, is another significant factor, contributing to approximately 30% of a FICO score and 20% of a VantageScore. For young adults, who often start with lower credit limits, keeping this ratio low is important. A high utilization ratio, above 30% of available credit, can signal increased risk to lenders and negatively affect scores. For example, on a $1,000 credit limit, keep the balance below $300.

The length of credit history accounts for about 15% of a FICO score and 21% of a VantageScore. Since 22-year-olds have a shorter credit history, this factor naturally contributes to lower scores compared to older individuals. The average age of accounts and the age of the oldest account are considered. Starting credit building early and maintaining accounts over time is beneficial, as this factor improves with age.

The mix of credit types used, such as revolving accounts (like credit cards) and installment loans (like student loans or car loans), makes up around 10% of a FICO score. While young adults may primarily have student loans or a single credit card, demonstrating responsible management of different credit types can positively influence their score.

New credit inquiries and recently opened accounts represent about 10% of a FICO score. Each time a new credit application is submitted, a hard inquiry is made on the credit report, which can cause a small, temporary dip in the score. Opening multiple new accounts in a short period can be viewed as risky behavior by lenders.

Strategies for Building and Improving Credit

For young adults seeking to establish or enhance their credit profiles, several strategies can be employed. Secured credit cards are an effective starting point, requiring a cash deposit that acts as the credit limit. This makes them easier to obtain for those with limited or no credit history, allowing individuals to build a positive payment history. After a period of on-time payments, some secured cards may transition to unsecured cards.

Student credit cards are another option tailored for young adults, often with lower credit limits. These cards can be a stepping stone to building credit, provided they are used responsibly and balances are paid in full each month. Becoming an authorized user on an established credit account, such as a parent’s credit card, can also help by inheriting the primary account holder’s positive payment history. However, the primary user must maintain responsible habits, as their missteps could negatively impact the authorized user’s credit.

Credit-builder loans offer a structured way to build credit by providing a small loan held in a savings account or certificate of deposit, released to the borrower once repaid. Payments are reported to credit bureaus, establishing a payment history. These loans help individuals build credit without incurring significant debt, as funds are not immediately accessible.

Once credit is established, managing existing credit effectively is important. Consistently making all payments on time is the most important action, as payment history carries the heaviest weight. Setting up automatic payments can prevent missed due dates. Keeping credit utilization low is also important; balances should be kept below 30% of the available credit limit. Paying down balances before the statement closing date can ensure a lower utilization rate is reported to credit bureaus.

Regularly monitoring credit reports is important. Consumers are entitled to a free credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once every 12 months through AnnualCreditReport.com. Reviewing these reports helps identify and dispute any errors or fraudulent activity that could negatively impact credit scores. Avoiding too many new credit accounts in a short timeframe is also important.

Some services allow for reporting of rent payments to credit bureaus, which can contribute to building a positive credit history. While not all landlords or utility companies report payment history, exploring services that facilitate this can be a strategy for young adults.