What Is the Average Credit Score of a 21-Year-Old?

Credit scores play a significant role in an individual’s financial journey, influencing access to loans, credit cards, and even housing. For young adults, understanding their credit standing is an important first step in establishing a stable financial future. A credit score summarizes an individual’s creditworthiness, based on their credit history, providing lenders a snapshot of how responsibly they manage borrowed money.

Average Credit Scores for 21-Year-Olds

For individuals around 21 years old, the average FICO credit score typically falls around 680. This score is generally considered to be in the “good” range. The average VantageScore for the Gen Z demographic is approximately 667. Both FICO and VantageScore models utilize a range from 300 to 850.

These averages often reflect a shorter credit history common among young adults. Individual credit scores can vary significantly based on personal financial behaviors.

Factors Influencing Credit Scores at This Age

A primary factor influencing a young adult’s credit score is having a “thin file,” meaning a limited credit history. The length of one’s credit history accounts for approximately 15% of a FICO score, placing younger individuals at a natural disadvantage. Developing a longer, positive credit history over time is essential for score improvement.

Student loan debt also plays a role. Timely payments positively contribute to a credit score. Conversely, late or missed student loan payments can significantly harm a score, as payment history is the most important factor in credit scoring models. Student loans can also diversify a credit mix and extend the average age of accounts.

Early credit card usage, if managed responsibly, helps build a positive credit profile. High credit utilization, the amount of credit used relative to the total available credit, can negatively impact scores.

Becoming an authorized user on another person’s credit card can also affect a 21-year-old’s credit. If the primary account holder maintains on-time payments and low utilization, this positive activity can appear on the authorized user’s credit report, potentially boosting their score. However, if the primary user mismanages the account, such as making late payments or carrying high balances, the authorized user’s score could also be negatively affected.

Strategies for Building Good Credit

Making all payments on time is the most impactful action for building and maintaining a good credit score. This includes credit card bills, student loan payments, rent, and utility bills if reported to credit bureaus. Setting up automatic payments helps ensure bills are paid promptly and consistently, preventing late payment marks that can remain on a credit report for up to seven years.

Maintaining low credit utilization is another strategy. Keep credit card balances well below assigned credit limits, ideally under 30%. Paying off credit card balances in full each month demonstrates responsible credit management.

Opening initial credit accounts responsibly is a foundational step. A starter credit card, often with a low credit limit, can be used for small, manageable purchases paid off in full monthly. Secured credit cards are another option for those with limited or no credit history. These cards require a cash deposit and report payment activity to major credit bureaus, helping to build credit history.

Credit builder loans offer an alternative method to establish credit. The borrower makes regular payments over a set period, often 6 to 24 months, which are reported to credit bureaus. Once the loan is fully repaid, the borrower receives the funds.

Avoiding common missteps is equally important. Applying for too many credit accounts simultaneously can lead to multiple hard inquiries on a credit report, which can temporarily lower a score. Prematurely closing old credit accounts can shorten the overall length of credit history and potentially impact a score.

Understanding and Monitoring Your Credit

Regularly accessing and reviewing credit information is important for managing financial health. Individuals are entitled to free copies of their credit reports from Experian, Equifax, and TransUnion through AnnualCreditReport.com. This website allows consumers to obtain one free report from each bureau annually.

Reviewing these reports periodically helps identify inaccuracies or signs of identity theft. Discrepancies can be disputed with the credit bureaus. While AnnualCreditReport.com provides reports, it does not include credit scores.

Credit scores can be checked through various sources, including credit card companies, banks, or free online services. Scores may vary slightly between different providers and scoring models, such as FICO and VantageScore. Checking one’s own credit score is a “soft inquiry” and does not negatively impact the score.