Experian released key findings from its annual State of Credit report revealing the average credit score hit an eight-year high at 682. Experian’s report provides a year-over-year view of average credit scores, debt, delinquencies and card balances.

In preparation for a new decade, this year’s report took a close comparative look at how men and women manage credit and debt, shared a glimpse of the financial behaviors of each generation and ranked the states with the highest and lowest average credit scores, according to an Experian news release.

The released said the report found American’s average credit score increased two points year-over-year to 682. While people are taking on slightly more credit card, mortgage and nonmortgage debt year-over-year, delinquency rates are decreasing on average.

“We’re seeing a promising trend in terms of how Americans are managing their credit as we head into a new decade with average credit scores increasing two points since 2018 to 682 – the highest we’ve seen since 2011,” said Shannon Lois, Experian’s head of analytics, consulting and operations in the news release. “Average credit card balances and debt are up year over year, yet utilization rates remain consistent at 30 percent, indicating consumers are using credit as a financial tool and managing their debts responsibly.”

Highlights of Experian’s State of Credit report:

3-year comparison

2017

2018

2019

Average number of credit
cards

3.06

3.04

3.07

Average credit card
balances

$6,354

$6,506

$6,629

Average number of retail
credit cards

2.48

2.59

2.51

Average retail credit card
balances

$1,841

$1,901

$1,942

Average VantageScore®[1,2]

675

680

682

Average revolving
utilization

30%

30%

30%

Average nonmortgage
debt[3]

$24,706

$25,104

$25,386

Average mortgage debt

$201,811

$208,180

$231,599

Average 30 days past due
delinquency rates

4.0%

3.9%

3.9%

Average 60 days past due
delinquency rates

1.9%

1.9%

1.9%

Average 90- 180 days past
due delinquency rates

7.3%

6.7%

6.8%

“Understanding the factors that influence their overall credit profile can help consumers improve and maintain their financial health,” said Rod Griffin, Experian’s director of consumer education and awareness in the same Experian news release. “Credit can be used as a financial tool. Through this report, we hope to provide insights that will help consumers make more informed decisions about credit use as we prepare to head into a new decade.”

Battle of the Sexes
When comparing the borrowing behaviors of men and women, Experian’s State of Credit report revealed woman have a four-point lead over men with an average credit score of 686 compared to 682. While men and women both maintain a utilization rate of 30 percent, differences in how they manage credit include:

  • Men carry more non-mortgage and mortgage debt than women at $27,314 and $220,421 respectively; compared to $24,176 and $203,630.
  • Women have more credit cards (3.17 compared to 3.01) and retail cards (2.83 compared to 2.13) but carry lower balances with an average credit card balance of $6,569, compared with $6,872 and an average retail card balance of $1,858 compared to $2,087.
  • Men have a slightly higher 90+ days past due delinquency rate (34% compared to 33%).

Generational Divide
Experian’s report revealed Gen Xers, millennials and Gen Zers tend to carry more debt (including mortgage, nonmortgage, credit card and retail card) than older generations and have higher delinquency and utilization rates, according to the news release.

Generation

Avg.
Credit
Score

Credit
cards

Credit
card
balances

Retail
cards

Retail
card
balances

Nonmortgage
debt

Mortgage
debt

Utilization
rate

90+
days
past
due

Gen Z

641

1.59

$2,503

1.63

$999

$9,317

$159,677

36%

25%

Millennials

647

2.66

$5,071

2.14

$1,785

$25,602

$222,924

35%

43%

Gen X

665

3.28

$8,383

2.66

$2,257

$32,073

$243,430

36%

41%

Baby boomer

710

3.50

$7,571

2.74

$1,994

$26,673

$193,894

26%

28%

Silent

731

2.90

$4,580

2.33

$1,385

$13,852

$162,162

15%

18%

U.S. average

682

3.07

$6,629

2.51

$1,942

$25,386

$213,599

30%

34%

Annual State Rankings
As part of the annual study, Experian also ranked states by average credit score in 2019. MinnesotaVermontSouth DakotaNew Hampshire and Massachusetts are the top-ranking states in the nation, with prime credit scores of 705 or more. MississippiLouisianaAlabamaTexas and Oklahoma are the five lowest-ranking states, with credit scores below 660.

Top 5 highest average credit scores by state

2019 highest
rankings

State

2019 average
VantageScore

1

Minnesota

715

2

Vermont

708

3

South Dakota

707

4

New Hampshire

707

5

Massachusetts

705

Top 5 lowest average credit scores by state

2019 lowest
rankings

State

2019 average
VantageScore

1

Mississippi

652

2

Louisiana

654

3

Alabama

660

4

Texas

660

5

Oklahoma

660

Analysis methodology
Experian’s analysis is based on a statistically relevant sampling of Experian’s consumer credit database, available on the Experian Ascend Technology PlatformTM, from Q2 2017, 2018 and 2019. Analyzed credit files contained no personally identifiable information. Credit scores are based on VantageScore (range 300 – 850).

Source:  Experian