COSTA MESA, Calif.,
Dec. 19, 2019 /PRNewswire/
-- Experian®, the leading global information
services company, released key findings from its annual State of
Credit report today 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. As we prepare 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 the report, American's average credit score has
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. "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. "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.
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.
Minnesota, Vermont, South
Dakota, New Hampshire and
Massachusetts are the top-ranking
states in the nation, with prime credit scores of 705 or more.
Mississippi, Louisiana, Alabama, Texas 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).
About Experian
Experian is the world's leading global
information services company. During life's big moments — from
buying a home or a car to sending a child to college to growing a
business by connecting with new customers — we empower consumers
and our clients to manage their data with confidence. We help
individuals to take financial control and access financial
services, businesses to make smarter decisions and thrive, lenders
to lend more responsibly, and organizations to prevent identity
fraud and crime.
We have 17,200 people operating across 44 countries, and every
day we're investing in new technologies, talented people and
innovation to help all our clients maximize every opportunity. We
are listed on the London Stock Exchange (EXPN) and are a
constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global
content hub at our global news blog for the latest news and
insights from the Group.
Experian and the Experian marks used herein are trademarks or
registered trademarks of Experian and its
affiliates. Other product and company names mentioned
herein are the property of their respective owners.
1VantageScore is a registered trademark of
VantageScore Solutions,
LLC.
2VantageScore range is 300 to
850.
[3]Average debt for this
study includes all credit cards, auto loans and personal
loans/student loans.
Contacts:
Amanda Garofalo
Experian Public Relations
1 714 830 7923
Amanda.Garofalo@experian.com
Annie Russell
Experian Public Relations
Annie.Russell@experian.com
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SOURCE Experian