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The average FICO® Score for a 22-year-old is currently 678, which is in the good range and can qualify you for various types of credit. Your credit score depends on a variety of factors, including your history of paying your bills on time and your length of credit history. The average 22-year-old may not have had much time to build a credit history yet, but on average, people this age are managing credit responsibly.

Understanding what a credit score is and what this number means is an important part of accessing credit and taking control of your personal finances. Read on to learn more.

Average Credit Score for a 22-Year-Old

The average credit score for individuals aged 18-28 is 678 as of September 2025. In general, this is considered to be a good score, one that you’ll need to access credit such as a home loan, for example. As a point of comparison, the average credit score for all Americans is currently 713 as of September 2025. As you see, the typical score for a young adult is somewhat lower, which may reflect the fact that they likely haven’t been using credit products as long as older people have.

It’s worth noting that credit scores, which usually run from 300-850, don’t usually start at 300. A starting credit score is often between 500 and 700.

Recommended: What Is the Average Salary in the U.S.?

What Is a Credit Score?

Your credit score is a three-digit number ranging from 300-850, as noted above, that represents your credit history. It basically provides a snapshot of how well you manage credit. Lenders and others may use it to determine your credit risk. In general, the lower your score, the more lenders will worry you’ll have trouble paying back your debt. The higher your score, the less risk you represent.

What Is the Average Credit Score?

The average credit score in the U.S. is 713 according to FICO® Score, the most commonly used credit scoring system.

There are different credit scoring models, such as VantageScore vs. FICO, that use their own scoring system. The average VantageScore® 4.0 credit score in the U.S. is 702 as of June 2026.

The average VantageScore for 22-year-olds isn’t broken out by specific age, but Gen Z consumers were recently found to have an average VantageScore 3.0 credit score of 668, which is lower than the average FICO Score for that generation of 678.

Average Credit Score by Age

The average credit score varies and rises steadily by age. Compare average scores across generations to see how you stack up against other age cohorts.

What’s a Good Credit Score for Your Age?

Credit scores are categorized in a range from poor to exceptional. For FICO Scores, the most widely used score in the U.S., here is how the scores shape up:

•   300-579: Poor

•   580-669: Fair

•   670-739: Good

•   740-799: Very good

•   800-850: Exceptional or excellent

As mentioned above, the average score of 22-year-olds is 678, which is considered good. On average, those aged 61 and older crack into the very good range.

How to Build Your Credit Score

Building your credit score can potentially give you greater access to borrowing and at more favorable rates and terms. Follow these tips:

•   Pay your bills on time, as this is the biggest step you can typically take to maintain or build your score.

•   Avoid using too much of your available credit — this is the next most important step you can take. A common rule of thumb suggests using no more than 30% of available credit at any given moment.

•   Build a mix of different types of credit (such as credit cards, home loans, and personal loans) because it may also build your score. For this reason, you may want to avoid closing old lines of credit, even if they are something you don’t use regularly or at all.

•   Build a longer credit history, as this can positively impact your credit score. So if you are thinking of closing an account (such as a credit card you rarely use), keep in mind that doing so could lower your score. You might therefore decide to keep it open and use it occasionally.

•   Avoid applying for too much credit in a short period of time. Otherwise, it could contribute to a lower score. If you are, say, looking for a single home loan from multiple lenders, that kind of rate shopping should not be an issue. But if you apply for a mortgage, car loan, and two new credit cards within a couple of months, that may well lower your score.

How Does My Age Affect My Credit Score?

Your age is not a factor that is included in your credit score. It may have an indirect impact on your score, however. It can take time to build credit. If you’re younger, you may not have had much time to build a credit history, which may mean your score is lower than average. But as you age and build your credit through on-time payments, a longer history, and a broader mix of debt, your score may be positively impacted.

At What Age Does Credit Score Improve the Most?

It is perhaps unsurprising that the oldest Americans who have spent years building a credit history tend to have the highest scores, as noted above. This doesn’t mean, however, that you cannot achieve a high score when you are younger if you are responsible with your debt.

How to Build Credit

If you’ve never had credit before, there are several ways you can begin to build credit. Beyond the tips above about managing credit responsibly once you have it, you could open a secured credit card, which requires that you put up an amount of money as collateral for your debt. (Another way to think about this: Your deposit acts as your credit limit. As you pay your bill monthly, your activity is reported to the credit bureaus.) It is often easier to qualify for than other credit cards.

You could also become an authorized user on another person’s credit card account. This is typically something you might request of an older family member. Provided the account is used responsibly, it could help build your score.

If you’re looking to take out a loan, you could have a friend or family member with good credit cosign the loan. By doing so, they agree to make payments if you fail to do so. But be aware that loan activity will show up on both of your credit scores. Failure to make payments could bring your cosigner’s score down.

Credit Score Tips

In addition to keeping an eye on the factors that go into calculating your three digits (noted above), it’s also wise to monitor your credit score carefully to be sure that your credit history is accurate, as incorrect data could be dragging down your score.

You can check your credit score without paying by requesting a free credit report every week from each of the three major credit reporting bureaus: Equifax®, Experian®, and TransUnion®.

In general, the reporting bureaus will make credit score updates whenever any action has taken place related to your credit.

Check your credit report for errors. If you spot any, be sure to dispute the information with the credit reporting bureau immediately.

Developing healthy financial habits can help you manage your debts. Consider using spending apps and money tracker apps to help you understand where you are spending, where you may be taking on unnecessary debt, and where you could be saving toward financial goals, including debt repayment.

The Takeaway

The average FICO credit score for a 22-year-old is currently 678, which falls in the good range. Credit scores tend to rise with age, and responsible usage over time can help build a score into the very good or excellent range. To positively impact your score, be sure to pay bills on time and make sure not to take on more debt than you can manage. It’s good practice to monitor your credit score regularly for errors and to see if there are any steps you need to take to build your score and qualify for more favorable rates and terms when accessing credit.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

What is a good credit score for a 22-year-old?

The average FICO credit score for a 22-year-old is 678. This is in the good range.

Is a 750 credit score at 22 good?

A score of 750 is considered to be very good. It is between the good and excellent ranges on the FICO credit-scoring scale.

How rare is an 800 credit score?

Around 23% of Americans had FICO credit scores of 800 or higher in 2025. This makes it relatively common.

What is the average credit limit for a 22-year-old?

The average credit card limit for Generation Z, including 22-year-olds, is about $14,000. In general, older cardholders have higher credit limits.

Can a 22-year-old have a 700 credit score?

While someone who is 22 years old probably has a relatively short credit history, it is possible to have a score of 700. The average credit score for people aged 18-28 is 678, which is fairly close to that number.

How much debt is normal for a 22-year-old?

The amount of debt you carry will depend on your own financial circumstances. On average, Americans in their 20s carry nearly $20,000 in total debt.

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SoFi Coach offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery, or failure to store any user data, loss of user data, communications, or personalization settings. You must confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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It can take time to build credit and achieve a high credit score, especially for a 23-year-old who may have recently entered the workforce or still be in school. But as of September 2025, Generation Z, which includes people aged 18-28, had an average FICO^® credit score of 678. This is considered a “good” score that gives you access to more financial products and better interest rates than people with a lower score.

Learn more about the average credit score of a 23-year-old, what factors play a role in calculating credit scores, why credit scores matter, and some steps you can take to boost your score.

The Average Credit Score for a 23-Year-Old

As mentioned above, the average FICO credit score for a 23-year-old is 678, according to Experian^®, one of the three credit bureaus. (The other two are TransUnion^® and Equifax^®.)

Since the lowest credit score you can have is 300 and the highest is 850, this number puts you in a favorable place. You also have an opportunity to work on increasing your score.

Recommended: FICO Score vs. Credit Score

What Is a Credit Score?

A credit score is a three-digit number that creditors use to determine how likely you are to repay a loan and make payments on time. There are two main credit scoring companies that generate your credit score: FICO and VantageScore^®. However, 90% of lenders rely on FICO when making borrowing decisions.

Though FICO and VantageScore use different models for credit scoring, they both have a score range of 300-850 to signify creditworthiness. The higher your score, the less of a financial risk you may pose to lenders — and the more likely you are to get approved for a credit card, mortgage, or loan. A more robust credit score, typically 760 or higher, also means you’ll typically qualify for more favorable terms, such as lower interest rates, and possible credit card perks, such as earning cash back on purchases, airline miles, or higher credit limits.

Here’s a look at the average FICO credit score by age group to help you understand VantageScore vs. FICO:

What’s a Good Credit Score for Your Age?

A “good” FICO credit score falls somewhere between 670 and 739, regardless of your age. If, like many 23-year-olds, you lack a substantial credit history, your starting credit score probably won’t be within that range. The good news is, your score won’t be zero (no one’s credit score is), nor does it mean you’ll start out with 300, the lowest possible credit score.

Once you start showing you can manage your credit responsibly over time, your score should begin to rise. A spending app can help you manage bill paying and set budgets, which can make bill paying easier.

As you work on boosting your score, you’ll want to check it regularly — at least once a year and before applying for new credit — to track your progress and make adjustments as needed. Credit scores update at least once a month, so it could take a little time before you start to see any changes.

How Are Credit Scores Used?

Credit scores are but one factor lenders consider when evaluating whether to approve you for any type of credit or loan. If your credit score is considered “good” or better, you may be more likely to get approved because in creditors’ eyes, you’ve shown you’re able to manage debt responsibly.

Credit scores aren’t just important for people looking to borrow money or apply for a new line of credit. If you’re renting an apartment, for instance, the landlord may run a potential tenant credit check to determine if you’re a safe bet. And along with a background check, some employers may want to pull a prospective candidate’s credit score. Employer credit checks are more common in companies or businesses where the employee will be handling money and/or have access to customers’ financial information.

What Factors Affect My Credit Score?

There are five common criteria used to calculate credit scores. Here’s how much each one counts toward your FICO Score and why they can affect your credit score:

•   Payment history (35%): Your track record of bill paying can have a significant impact on your FICO Score. The more consistent and timely your payments, the better.

•   Credit utilization (30%): Credit utilization refers to the amount of available credit you’re using, and it’s a key factor in determining your credit score. A lower credit utilization rate is better for your credit score.

•   Length of credit history (15%): Generally, the longer an account is open and in good standing, the better it is for your credit score.

•   Credit mix (10%): Though not required, having a diverse array of credit, such as credit cards, installment loans, and even a home equity line of credit (HELOC), can show lenders you can handle different types of debt.

•   New credit (10%): When you apply for a loan or credit card, the lender will make a hard credit inquiry, which can cause a small, temporary dip in your credit score. If you apply for multiple loans or credit cards in a short period of time, your score can drop a bit. Lenders may also see it as a red flag that you’re taking on too many financial obligations.

How Does My Age Affect My Credit Score?

Your age doesn’t directly impact your credit score — your credit history does. But as noted earlier, credit scores do tend to increase with age and income levels. This means as a 23-year-old, you have the opportunity to establish positive fiscal habits early on, such as setting budgets, using a money tracker app to monitor spending, and living within or below your means.

At What Age Does a Credit Score Improve the Most?

According to Experian FICO Score data, baby boomers and the Silent Generation tend to have the highest credit scores of all age groups. But the biggest jump in scores — 38 points in 2025 — generally occurs between Generation X and baby boomers.

How to Build Credit

Wondering how to build credit? A good place to start is to acquire credit accounts so you can start establishing your credit history. Remember, lenders want to see a track record of responsible debt management, so it’s a good idea to create sound financial habits now. Pay your bills on time consistently. Resist the temptation to use up all of your available credit. And keep tabs on your finances so you don’t spend more than you’re bringing in.

And keep in mind, this is a long game. How long does it take to build credit? It depends, but generally speaking, it may take at least six months to build enough credit and get your first credit score.

Credit Score Tips

Whether you’re just starting on your credit journey or are preparing your finances for a major purchase, increasing your credit score is always a worthy goal. Here are some tips to help you do just that:

•   Pay your bills on time, every time. It bears repeating: A track record of on-time payments shows lenders that you’re serious about being fiscally responsible. It also can go a long way toward building your credit score.

•   Keep older accounts open. Closing any credit card accounts ends your payment history with that lender. Eventually, this account will drop off of your credit report and potentially impact your credit length and credit utilization rate. If you have an older credit card account in good standing, consider keeping it open — and even using it occasionally for smaller charges.

•   Get credit for other bills you pay. A 23-year-old can work toward increasing their credit score by looking into including rent payments, streaming services, and even some utility bills. Check out Experian Boost, which allows you to include these types of on-time payments in other accounts to your Experian credit report.

•   Check your credit report. You can check your credit reports without paying weekly via AnnualCreditReport.com. Ensure all the information is correct, and fix any errors you see.

Note that your credit report won’t show you your credit score. Instead, you may be able to get that important three-digit number from a number of sources, including your bank, credit card company, or Experian. As with checking your credit report, monitoring your credit scores helps you identify discrepancies or fraudulent activities.

Recommended: Why Did My Credit Score Drop After a Dispute?

The Takeaway

The average FICO credit score for a 23-year-old is 678, which is considered a “good” credit score. Having a score in this range can help make getting loans, credit cards, apartment rentals, and maybe even certain jobs a little easier. If you’re able to boost your credit score into a “very good” or even “exceptional” range, you may be able to qualify for loans with better terms or credit cards with attractive perks.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

What’s a good credit score for a 23-year-old?

No matter what your age is, a credit score that falls between 670 and 739 is considered good. The average FICO credit score for a 23-year-old is 678, which falls in the “good” range.

Is a 760 credit score at 23 good?

Yes, a 760 FICO credit score puts you in the “very good” range. It shows lenders that you’re creditworthy and able to capably manage credit.

What is a good credit limit for a 23-year-old?

Credit limits differ from person to person. The average limit for Generation Z consumers is around $14,000.

Is 720 a good credit score for a 23-year-old?

Yes, it is. A 720 credit score is classified as a “good” score, according to FICO, and a “prime” score per VantageScore.

How rare is an 800 credit score?

It’s not that common to have a credit score of 800 or higher, which is categorized as “exceptional.” Case in point: Only about 22.8% of Americans had a FICO Score in the 800-850 range in 2025.

How rare is an 825 credit score?

Less than a quarter of Americans boast a FICO credit score of 800 or higher. Having an 825 credit score is rare because it reflects, among other things, a near-perfect history of on-time payments. Late payments, defined as 30 days past due, appear on only around 0.7% of credit reports for people with a FICO credit score of 825, according to Experian.

Photo credit: iStock/BongkarnThanyakij

SoFi Coach offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery, or failure to store any user data, loss of user data, communications, or personalization settings. You must confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SORL-Q326-018

If you have a 700 credit score, you’re considered to have good credit. You may qualify for more competitive rates and options in terms of lending products. However, you may not get competitive rates or access to more premium products, such as luxury rewards credit cards.

That’s because while 700 is a good credit score, it’s not yet in the very good or exceptional range. Here’s a closer look at what a 700 credit score can get you, as well as how you can maintain — or build — this score.

What Is a 700 Credit Score?

A credit score is a three-digit number typically ranging from 300-850 that measures your creditworthiness. The higher your score, the less risk you pose as a lender — as in, you’re more likely to pay back loans on time. If you have a credit score of 700, it means lenders consider you likely to pay back your loans on time.

Credit scoring models use your credit history to calculate your score. This information is typically supplied by the three major credit bureaus: Experian®, TransUnion®, and Equifax®.

While a credit score of 700 falls well within the range of good, the FICO® Score and VantageScore credit rating scales vary slightly on what’s considered good credit. For the FICO Score, a score from 670-739 is considered good, while for VantageScore, the equivalent category (known as prime) is 661-780.

The differences in how FICO and VantageScore calculate and rate scores can also explain why you have different credit scores.

Is a 700 Credit Score Good or Bad?

A 700 credit score is considered good, or slightly above average. You may be able to more easily qualify for loans, whereas someone with a bad credit score may struggle to do so. While rates and terms will vary depending on the loan and the lender, applicants with good credit scores will generally qualify for better rates and terms compared to those with lower scores.

However, you may not qualify for some products, such as ultra premium credit cards with rewards.

What Can a 700 Credit Score Get You?

A credit score of 700 can help you achieve some of your financial goals, such as buying a house, replacing your car, or even achieving plans such as remodeling your home. That’s because you are more likely to qualify for loans that will help you achieve these goals than someone with a fair credit score or worse.

Here’s a closer look at the buying power you may get with a 700 credit score:

•   Auto loans: Applicants with 700 credit scores may be more likely to be approved for an auto loan. According to Experian’s first quarter 2026 State of the Automotive Finance Market report, the average VantageScore credit score for used auto loan applicants is 682, and for new auto loans, the average is 751.

•   Mortgages: Many lenders, even those offering conventional loans, tend to have minimum credit score requirements below the 700 credit score range. For instance, a common minimum score for a conventional home loan is 620. Government-backed loans may be available with lower scores, but jumbo loans tend to require at least a score of 700. Of course, your credit score is one of many other factors that affect your eligibility for a loan.

•   Personal loans: In many cases, lenders will offer you a more favorable interest rate if you apply for a personal loan with a minimum of a 700 credit score vs. a score in the 600s. Still, it’s best to check to see what other minimum requirements are.

•   Credit cards: You’ll likely have choices for unsecured credit cards with a credit score of 700, as this is well within the range of the typical minimum credit score for a credit card. Some cards may offer rewards, such as cash back or points toward flights and hotels. You may even qualify for credit cards that offer a 0% introductory annual percentage rate (APR), which can be helpful if you’re looking to make a large purchase soon or transfer a balance from a credit card with a high interest rate.

Overall, you may also be able to save more money because those with credit scores of 700 or higher can save on interest charges. The thousands of dollars you can save over the lifetime of loans can be used toward your other financial goals, whether that’s retirement savings or a family vacation.

Recommended: What Is the Starting Credit Score?

Factors That Can Affect a 700 Score

If you want to maintain or help build your credit score, it’s important to understand the factors that may affect it. Some of what can affect your 700 credit score includes information found in your credit history from all three major credit bureaus, including late payments, the length of your credit history, and credit utilization.

Recommended: What Is a Charge Card?

Late Payments

Your payment history is one of the most important factors credit scoring models use. That’s why it’s very important to keep track of when bills such as credit card payments are due. Even one late payment could have a negative impact — though the specifics will depend on other factors such as whether you’ve been late on payments before, how late the payment was, and how recent the late payment was.

Credit Utilization

Your credit utilization compares the overall limit you have on revolving credit and how much of it you’re using. This number is expressed as a percentage of your credit limit you’re using. Like your payment history, it’s also another major factor in calculating your credit score.

The general rule of thumb is that you should try to keep your credit utilization to 30% or less. This shows lenders that you’re not too reliant on credit and are generally responsible with your borrowing. On the flipside, a high credit utilization can negatively impact your score.

Recommended: Tips for Using a Credit Card Responsibly

Length of Credit History

The longer your credit history, the more it appears to lenders that you have experience using credit. Think of it like a work resume — you’ll have more opportunities to show how you handle various credit and debt accounts.

Hard Inquiries

Whenever you apply for a new credit card or other type of loan, lenders will conduct a hard inquiry to look at your credit report. This inquiry will usually affect your credit score negatively, albeit by a small amount (typically 5-10 points) and temporarily.

The more inquiries you have, the more it could affect your score. That’s because lenders may view too many hard inquiries as you being stretched too thin financially and needing to rely on loans.

A higher credit score could mean that you’re not applying for new accounts often or that you’re spacing them out so you don’t seem like you’re too risky of a borrower.

Recommended: Breaking Down the Different Types of Credit Cards

The Takeaway

A 700 credit score is considered a good score and can open up more doors to credit compared to someone with a lower credit score. You may have an easier time getting approved for a range of loans and lines of credit and with more competitive terms and interest rates. Just don’t take this score for granted — there’s work required to maintain a good credit score and build it further.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

FAQ

What can be accomplished with a 700 credit score?

You can accomplish different financial goals if you have a 700 credit score. For one, you may be able to make large purchases, such as a new vehicle or a home, or you might access funds to complete a large-scale home remodel. That’s because you are more likely to get approved for loans that can help you achieve these types of financial goals versus someone with a lower score.

Can you buy a house with a credit score of 700?

In many cases, lenders have minimum credit score requirements with scores around 620. That being said, there are many other factors that go into whether underwriters will approve you for a mortgage. Some of these qualifying criteria include your debt-to-income ratio, the amount of assets you have, and whether you have a steady source of income.

What percentage of the population has a credit rating above 700?

A credit score of 700 falls within the FICO “good” range (670–739), and in 2025, 70% of consumers in the U.S. had a 670 credit score or above. According to data from Experian, the average FICO Score in the U.S. in 2025 was 713.

How fast can you build a 700 credit score?

How soon you can get a 700 credit score will depend on numerous factors, such as your existing credit history and financial behavior. For instance, if you can positively impact major factors affecting your score, such as lowering your credit utilization or consistently paying your bills on time, it could have a noticeable effect quickly. Each person’s financial situation is different, however, so it may take someone months to build their credit score, while for others it could take years.

Photo credit: iStock/Peopleimages

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Almost everyone in the U.S. (and many other countries) has a credit score, which is a three-digit number that some lenders use to evaluate whether or not to extend credit to you. In some cases, a lender will use your exact credit score as a determining factor. In other cases, they’ll group similar credit scores into a credit score range.

Different companies use different credit score ranges, but in most cases, your credit score will be grouped into one of five different categories: excellent, very good, good, fair, or poor. The better your credit score, the more likely you’re to get approved for new loans and the lower your interest rate may be if you’re approved.

What Is a Credit Score?

A credit score is a three-digit number that attempts to encapsulate your total credit history, meaning your track record of repaying debt. There are a few different companies and models that are used, but credit scores typically range from 300 on the low end to 850 on the high end. Many lenders will use your credit score to determine whether or not they want to issue you new credit.

What Are Credit Score Ranges?

Credit score ranges (sometimes referred to as a credit rating scale) are a way to group together similar credit scores. Each company that makes credit scores has its own way of grouping credit scores, but they tend to follow a similar pattern. There are usually five different credit score ranges — excellent, very good, good, fair, or poor.

Here is an example from one of the most popular rating systems, the FICO® Score:

• 300-579: Poor

• 580-669: Fair

• 670-739: Good

• 740-799: Very good

• 800-850: Exceptional or Excellent

As of March 2026, the average credit score in the U.S. was 714, which is solidly in the good range.

Recommended: Does Applying for a Credit Card Hurt Your Credit Score?

How Credit Scores Are Calculated

There are a few different companies that calculate and monitor credit scores, and each one does it in a slightly different way. Typically, the various credit bureaus, such as Experian®, Equifax®, and TransUnion®, collate all sorts of information about each individual, from their payment history to their credit usage to the age of their credit accounts. They lease this information to companies such as the Fair Isaac Company (FICO), which then uses that information to calculate a FICO score.

Recommended: When Are Credit Card Payments Due?

How to Check Your Credit Score

There are a few ways you can check your credit score. You can purchase it from a provider, or your credit card company or other financial institution may provide your credit score for free. Or you may use a free credit scoring website or other service to get your score.

Your credit score updates regularly as the underlying information that the credit bureaus report changes. Every time you open a new credit card, make a payment to one of your debts, apply for credit, or do anything else credit related, your credit score may update.

What Is a Good Credit Score?

The various companies that calculate credit scores have different models and different ranges for what credit score is considered “good.” Typically, a credit score of 670-739 is considered good, with credit scores of 740-799 being very good and scores over 800 being considered excellent.

Factors That Impact Your Credit Score

Each company that calculates credit scores uses their own proprietary formula to calculate credit scores. Five of the common criteria used to calculate credit scores are:

• Payment history, meaning do you have a history of paying on time

• Credit usage, which is typically expressed as your credit utilization ratio, meaning how much debt (or a balance) you have vs. your credit limit

• Length of credit history, or how long you have been accessing credit

• Credit mix, which considers whether you have shown yourself to be capable of managing, say, both installment loans and lines of credit

• Recent credit inquiries, since too many hard credit inquiries in a short period of time can negatively affect your credit score

Credit Models Applied by Different Companies

You may wonder why you have different credit scores, and the answer is that there are different credit models applied by different companies. Depending on what company is doing the calculation, they may calculate your score slightly differently.

Generally speaking, each company that calculates credit scores looks at mostly the same types of information, so your different credit scores should be similar. It would be rare (if not impossible) to have a bad credit score from one credit model and excellent credit in another.

Lenders Credit Score Grouping

Some lenders may use your exact credit score to determine whether to extend credit, whereas others may group scores into a range. For instance, a particular lender might give one interest rate to people with excellent credit and a higher rate to those with very good or good credit. Meanwhile, they may choose not to extend credit at all to those with a fair credit score or lower.

Credit Score in Relation to Your Age

There is not a strict correlation between your age and your credit score. You might think that there is a specific starting credit score, but the truth is that when you are just starting out, you don’t have any credit score at all. As you get older, however, you have more chances to show that you are responsible (or not responsible) with your credit, and your credit score is adjusted accordingly.

Consequences of Having a Low Credit Score

Having a low credit score can have quite a negative impact on your financial life. If your credit score is too low and you don’t meet the minimum credit score for a credit card, you may not be able to get approved for loans or a credit card. And if you are approved, you may have to pay significantly higher interest rates than someone with better credit.

Tips for Building Your Credit

There is no one magic way to build your credit — instead, your credit will build as you show that you’re responsible with the loans that you already have. For example, as you use your credit card responsibly by paying your monthly statement on time, your credit score may be positively impacted vs. paying late or missing payments, which can lower your score.

Other ways that you can work toward building your credit include avoiding using too much of your available credit and keeping old accounts open to maintain the age of your accounts.

Recommended: Understanding Purchase Interest Charges on Credit Cards

Monitor Your Credit Score

Another thing you can do to try and secure a solid financial future is to regularly monitor your credit report and credit score. Keeping an eye on the information in your credit report can help you know if there’s any inaccurate or incorrect information in it. If there is, correcting it can be one way to build your credit score.

Additionally, keeping an eye on your credit score can clue you into what effect different behaviors have on your credit score. This can help you make more informed credit-related decisions in the future.

The Takeaway

A good credit score can make borrowing easier and less expensive by improving your chances of approval and helping you qualify for better loan terms. While scores range from 300-850, the average U.S. score is in the good range, showing that building strong credit is achievable. By paying bills on time, keeping credit card balances low, and using credit responsibly over time, you can maintain good credit and broaden your financial options.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

FAQ

What is the average credit score?

As of 2026, the average credit score in the United States is 714, which falls in the good credit range. Maintaining a score in the good range can still help you qualify for better loan options and lower interest rates.

What benefits does a good credit score provide?

Having a good credit score can have a variety of positive financial impacts. You may need a minimum credit score to get a credit card that you want to apply for, or you may qualify for a lower interest rate on some loans as compared to someone with a lower credit score.

Can my credit score affect my loan eligibility?

Yes, your credit score can absolutely affect your eligibility for certain loans. If you have a bad credit score, you may not get approved for a loan from some lenders. Or, if you are approved, you may have to pay a higher interest rate than someone with a better credit score.

Can a very poor credit rating prevent me from getting a cell phone contract?

Yes, it is possible that having a low credit score might prevent you from getting a cell phone contract. Some cell phone providers look at your credit score when you’re applying for a cell phone contract. If you have a low credit score, you may not be able to qualify for some contracts, or you may have to put down a security deposit beforehand.

Will low credit impede my chances of getting a rented apartment?

There are some landlords or property managers who look at your credit score when deciding whether or not you qualify for an apartment. If that’s the case for an apartment you’re looking at, then having a low credit score may have a negative impact on your chances of qualifying.

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It goes without saying that getting hit with a credit card fee isn’t anyone’s preferred way to spend their money. If possible, you probably want to dodge those charges so you can use that cash elsewhere, perhaps putting it toward the bill itself or buying yourself a great meal.

One common type of credit card fee is a returned payment fee, usually amounting to $25 to $40. This is when you get charged with a fee because your credit card payment doesn’t go through and is returned by the bank. Fortunately, this charge can easily be avoided. Read on to learn the ropes.

What Is a Returned Payment Fee?

A returned payment fee is a one-time penalty a credit card issuer may charge you when a credit card payment you make online or via phone or check gets declined by the bank.

How much is a returned payment fee? If you don’t have enough funds in your bank account to cover the bill or if the credit card issuer isn’t able to process your transaction for a number of reasons, you might be charged a returned payment fee of anywhere from $25 to $40 by the credit card issuer.

How Credit Card Returned Payment Fees Work

Here’s how credit card returned payment fees work: Say you set up a $200 autopay for your next monthly credit card bill, which is due on the 21st of the month. If when that date arrives, your account only has $185 in it (perhaps you had an emergency car repair to pay for), the autopay to your credit card will not go through properly since you don’t have enough money in the linked bank account. That’s when you get charged a returned payment fee, in addition to still owing the credit card company your monthly payment.

Typically, a credit card returned payment fee will be included in your next credit card statement.

Worth noting: You may well incur other fees. Your bank might charge you a separate nonsufficient funds fee. For 2026, the average NSF fee is $16.82, though these charges can run as high as $35 per instance.

This could negatively impact your credit score if a returned payment doesn’t go through before your statement due date, which results in you being late on your payment or missing it altogether.

What Happens if a Credit Card Payment Is Returned?

If your credit card payment doesn’t go through due to lack of funds in your bank account or for some other reason, the credit card issuer will charge you with a returned payment fee. In some instances, they will make a second attempt to collect your payment before assessing you for this kind of fee.

What happens if the payment goes through after you are charged a returned payment fee? The credit card issuer might still charge you and collect the fee. Or you might be able to recoup the fee, depending on the card issuer and whether you’ve managed credit responsibly in the past.

How Long Does It Take for a Returned Payment to Be Refunded?

Not all returned payment charges will be refunded. You may be able to get a returned payment fee waived. This is most likely to occur if this is the first time you have missed an on-time payment.

Another scenario: Mistakes happen, and if you believe that you are wrongly or incorrectly charged for a returned payment, you can contact your credit card issuer to discuss and/or dispute the charge.

Typically, any credit card refunds appear on your statement in three to 14 business days.

Recommended: What Is Credit Card Processing?

Who Charges a Returned Payment Fee?

The credit card issuer typically charges a returned payment fee. This is a separate and different charge than a nonsufficient funds fee, which is charged by the financial institution where you hold your account.

That said, there are different types of credit cards and different types of card issuers. Check with yours to know the policy and specific fee that could be assessed in this situation.

Types of Returned Payment Fees

In many cases, you can get hit with a returned payment on a credit card. The credit card issuer will charge this fee if there’s not enough funds in your bank account to cover the payment or if the transaction fails to go through for some other reason.

The other main type of returned payment fee is charged by a financial institution when your check bounces or you don’t have enough money in your bank to cover a transaction on your debit card. This is also known as a nonsufficient funds fee and, as noted above, averaged $16.82 in 2026.

Beyond those fees, you might also be assessed a returned payment fee on other kinds of accounts, such as a gym that charges a recurring fee, a streaming service, or a car leasing company in a situation in which a payment bounces.

Recommended: Guide to Choosing a Credit Card

Tips for Avoiding Credit Card Returned Payment Fees

Here are some tactics to help you avoid returned payment fees from your credit card:

•   Always double-check that you have enough money in the bank to cover the payment. Some people like to keep a cash cushion in their account to help prevent overdrafts.

•   It might be wise to have a separate checking account to use on discretionary spending and another one for recurring monthly bills, such as credit card payments.

•   To make sure you stay in the green, consider moving money from your main checking account to a subaccount whenever you make a charge on your credit card. For instance, if you spend $30 on dinner, then move $30 into the subaccount. That way, when it’s time to make a credit card payment, the money will be ready.

•   If you’re having trouble with autopay on a credit card payment, consider making several manual payments throughout the billing cycle. For instance, split the payment in half and make two separate, manual payments.

Other Credit Card Fees

Here are other common credit card costs and fees:

•   Interest fees: If you keep a balance on your credit card, you’ll be charged interest on the outstanding balance. Your balance, plus the APR (annual percentage rate), which is the interest rate plus any tacked-on fees, can fluctuate in tandem with the prime rate, impacting how much you pay in interest on a card.

That interest (and other fees) are among the key ways that credit cards make money.

•   Annual fee: Some cards might charge an annual fee, which is billed on your anniversary month. So if you opened a credit card in March, then you’ll be charged an annual fee every March as long as you keep the card open. Some issuers might waive the credit card annual fee the first year you open your card.

•   Late fees: If you’re late making a payment, you could get charged a late fee on your credit card. This fee depends on the credit card issuer and is typically around $32 per instance.

•   Foreign transaction fee: If you use your card in another country or make a purchase from a company that’s not based in the U.S., you might be charged a foreign transaction fee. These fees are anywhere from 1% to 3% of the amount. Some travel cards and international credit cards don’t have a foreign transaction fee.

You might also opt for a conventional credit card that doesn’t charge any foreign transaction fees, which can help you save when you’re abroad.

•   Balance transfer fee: If you’re moving the balance from one credit card to another, there’s likely a balance transfer fee. This is a one-time fee that is either a flat fee or a percentage of the transfer amount, which is typically from 2% to 5%. Balance transfers are usually a tactic to save on interest fees, so you’ll want to make sure the savings is greater than any fees.

The Takeaway

A credit card returned payment fee can feel like a nuisance at best and a financial strain at worst. These charges are usually between $25 and $40 per instance. Fortunately, with a bit of vigilance and planning on your part, returned payment fees and credit card fees in general can be avoided.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

FAQ

What happens when a payment is returned?

When a payment is returned and your credit card issuer is unable to process a payment, they usually charge you with a returned payment fee. In some cases, they might make a second attempt to collect the money before hitting you with a fee.

Is a returned payment a late payment?

A returned payment and a late payment are two different things and, in the case of fees, two different kinds of charges. A returned payment fee is charged when there is an issue with your payment and the payee is unable to receive the funds. If you are able to make a payment to a payee but it happens after the due date, it could result in a late payment fee on your account.

What should I do about returned credit card payments?

If a credit card payment gets returned, then you should aim to make your payment as soon as possible. Or, contact your credit card issuer and ask if they might be able to waive it, especially if it’s your first time having this problem. Also, take steps to avoid this scenario in the future.

Photo credit: iStock/FreshSplash

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