by Mitti Hicks
May 2, 2025
Nationwide, the average credit score as of 2024 is 717, which is one point lower than the previous year. However, there is a significant difference for Black Americans, who have an average credit score of 627.
If you have low credit scores, then it’s time to take the steps to raise them. Credit scores matter. The three-digit numbers, ranging from 300 to 850, determine our way of life. Without a good score, renting an apartment, buying a home or car, and securing employment could be jeopardized.
So, what’s considered a good credit score? According to FICO, scores of 670 and up are considered good. However, Americans usually need a higher score to qualify for low interest rates on new loans and credit cards.
Nationwide, the average credit score as of 2024 is 717, which is one point lower than the previous year, according to FICO. FICO stands for Fair Isaac Corporation. It’s a credit scoring model used by lenders to assess a borrower’s creditworthiness and predict their likelihood of repaying debts. According to Investopedia, the decrease was due to a rise in missed payments and more consumer debt.
Lenders and other financial institutions also use the VantageScore credit scoring model to assess a person’s creditworthiness. The three major credit bureaus developed VantageScore: Experian, Equifax, and TransUnion. Like FICO scores, VantageScores range from 300 to 850. According to VantageScore, the average credit score was 702 in 2024.
However, there is a significant difference for Black Americans.
White and Hispanic communities had the highest median scores, while the Black and Native American communities had the lowest. The average score for Black Americans is 627, Investopedia reveals.
How Credit Scoring Works
One of the most significant impacts on an individual’s credit score is how regularly people pay their debts on time, which accounts for 35% of their score. The second is how much credit they have available and how much they currently use (also known as the credit utilization ratio), which accounts for 30%.
These two alone make up two-thirds of a person’s credit score.
The duration of accounts also matters, as does how many times a person has applied for new credit and a variety of accounts (think credit cards, loans, and mortgages).
Tips To Raise Credit Score
One of the first tips is getting copies of your credit report to ensure the information is correct. Experts recommend visiting AnnualCreditReport.com to get a free report from each of the three national credit reporting firms every year.
Paying off debt is another great way to raise your score. A financial expert told USA Today that Americans should only use 70% of the credit available to avoid indicating that they are overspending.
Another way to improve credit is to keep a mix of credit lines. You can do this by taking out a mortgage or car loan, but only if you have to.
Another way to boost your score is to keep your credit lines, even if you don’t use them. A lengthy credit history is essential, so do not close your credit lines.
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