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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 August 2024, Generation Z, which includes people aged 18-26, has an average FICO® credit score of 681. 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 credit score for a 23-year-old is 681, 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 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 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 to 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 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 how the scoring range of VantageScore vs. FICO differs so you can see where you stand with both:

What’s a Good Credit Score for Your Age?

A “good” FICO credit score falls somewhere between 670 to 739 or higher, 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 about four times a year to track your progress and make adjustments as needed. Credit scores update every 30 to 45 days, 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 customer’s 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 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 a 23-year-old has 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 — 37 points in 2024 — 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 three to 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 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 credit score for a 23-year-old is 681, 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 credit score for a 23-year-old is 681, 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, and 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, but the average limit for Generation Z consumers is around $13,000.

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% of Americans have a score in the 800s.

How rare is an 825 credit score?

As mentioned above, less than a quarter of Americans boast a credit score of 800 or higher. Having an 825 credit score is rarer 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 1% of credit reports for people with a credit score of 825, according to Experian.

Photo credit: iStock/BongkarnThanyakij

SoFi Relay 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 shall 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-Q424-032

The average credit score for a 22-year-old is currently 680, 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 to 25 is 680 as of January 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 717 as of mid-2024. 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 to 850, don’t 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 to 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 717 according to FICO® Score, the most commonly used credit scoring system.

There are other credit scoring companies such as VantageScore vs. FICO that may have a different scoring system. The average VantageScore in the U.S. is 705 as of mid-2024.

The average VantageScore for 22-year-olds isn’t broken out by specific age, but those in their 20s were recently found to have an average score of 662, which is a bit lower than a FICO Score of 680 but still in the good range.

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 680, which is considered good. On average, those aged 58 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:

•   The biggest step you can typically take to maintain or build your score is always pay your bills on time.

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

•   Having a mix of different types of credit (such as credit cards, home loans, and personal loans) 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.

•   Similarly, having a longer credit history 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.

•   Another wise move can be to 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 your 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 22-year-old’s credit score is currently 680, 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 22-year-old has a credit score of 680, which is in the good range.

Is a 750 credit score at 22 good?

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

How rare is an 800 credit score?

Just over 20% of Americans have a credit score of 800, making it relatively common.

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

The average credit limit for 22-year-olds is currently almost $13,000.

Can a 20 year old have a 700 credit score?

While someone who is 20 years old probably has a relatively short credit history, it is possible to have a score of 700. The average credit score for people in their 20s is 680, 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 18–23 years old carry more than $9,500 in debt.

Photo credit: iStock/insta_photos

SoFi Relay 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 shall 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®

SORL-Q424-028

For a conventional mortgage loan, you typically need a credit score of 620 or higher to indicate that you are likely to repay your debt on time and get approved. However, there are other types of loans that may be available for people with lower scores. In addition, with a higher score, you may qualify for more favorable rates and terms.

For many, buying a home is a huge financial step, representing the biggest purchase they’ll ever make in their life. Read on to learn more about how your credit score impacts your ability to access a home loan and which terms are available to you.

Average Credit Score to Buy a House

About 70% of mortgages are conventional loans, making these far and away those most common mortgage type. For a conventional mortgage, lenders will typically require a minimum credit score of 620. That said, on average, homebuyers had a credit score of 758 in 2024, considerably higher than the required minimum.

On the topic of credit scores, here’s how the FICO® Score, a popular credit-scoring model, arranges its credit score ranges:

•   300-579: Poor

•   580-669: Fair

•   679-739: Good

•   740-799: Very good

•   800-850: Exceptional or excellent

Recommended: What Is the Starting Credit Score?

What Credit Score Do I Need to Buy a House?

As mentioned above, the credit score you need to buy a house will vary depending on the loan type you apply for. In general, necessary credit scores will range from 500 to 700. The higher the score, the easier it generally is to secure credit and qualify for favorable terms and interest rates.

Minimum Credit Scores by Home Loan Type

There are several different types of home loans you may apply for depending on your circumstances, including conventional loans, jumbo loans, FHA loans, VA loans, and USDA loans. Each type of loan has a different minimum credit score requirement.

Conventional Loans Minimum Credit Score

A conventional loan is a home loan that is backed by private lenders. It is not backed or insured by the government. This is the most common type of home loan and usually requires a minimum credit score of 620. If your credit score is higher than that (say, in the very good or excellent ranges), you may qualify for lower interest rates and better terms.

Jumbo Loans Minimum Credit Score

Jumbo loans are loans that are too big to be covered by conventional loans as determined by the Federal Housing Finance Agency (FHFA). According to the FHFA, in 2025, loans bigger than $806,500 require a jumbo loan in most counties. Jumbo loans usually have a minimum credit score of 700, one of the highest credit score thresholds among mortgage options.

FHA Loans Minimum Credit Score

A Federal Housing Administration, or FHA, loan is one that is backed by the federal government. This program helps make buying a house more affordable for families with low or moderate incomes. Government backing means these loans may be extended to individuals who would otherwise likely be seen as risky by conventional lenders. FHA loans typically have a low minimum credit score requirement of 500 with a 10% down payment and a 580 credit score with a 3.5% down payment.

VA Loans Minimum Credit Score

A VA loan is partially guaranteed by the Department of Veterans Affairs. They are available to veterans, service members, and their families, and some lenders will require a minimum credit score of 620. That said, there is no official minimum credit score requirement, so you may be able to access a VA loan with a lower score. If that is your situation, you may have to provide additional documentation in order to be approved.

USDA Loans Minimum Credit Score

USDA loans are guaranteed by the U.S. Department of Agriculture and are available in certain individuals in rural areas. They often look for a minimum credit score of 580, but as with VA loans, there isn’t a strict requirement. You might qualify for a USDA loan with a lower score if a lender reviews your financials and determines you are creditworthy.

Related: The 52 Week Savings Challenge

How Your Credit Score Affects Mortgage Rates

Your credit score is a three-digit representation of your credit history. Higher scores demonstrate that you have been responsible with your credit, paying bills on time and avoiding taking on more debt than you can manage. Lenders see potential borrowers with high scores as being less risky than those with lower scores. If you’ve managed credit wisely in the past, you may well do so again in the future.

As a result, lenders may offer borrowers with high scores credit with better terms and lower interest rates. Lenders may also extend credit to borrowers with lower scores. However, to compensate for the extra risk they are taking on, they may charge higher interest rates, which increases the overall cost of borrowing.

Here’s an example of mortgage interest rates for conventional loans by credit score as of mid-2024:

•   Those with a credit score of 760-850 would have a 6.976% APR

•   Those with a credit score of 660-679 would have a 7.589% APR

•   Those with a credit score of 620-639 would have an 8.565% APR

While these differences among rates may not sound huge, over the life of a loan, an additional percent or so in interest can really add up.

Other Factors Mortgage Lenders Consider

In addition to your credit score, lenders will also likely look at some other factors:

•   Your employment status and income. They may want to see that you have a steady stream of cash to pay your monthly mortgage bill.

•   How much money you have for a down payment. The more money you put down, the less risk the lender has to take on. As a result, higher down payments may help you qualify for loans and lower interest rates.

•   Other assets you have that could be used to make debt payments in case you don’t have enough income.

•   The value of any other property you own.

•   Your debt-to-income ratio (DTI). This is a comparison of how much debt you owe versus how much money you have coming in. It’s a quick way to let lenders know whether you have enough income to cover your liabilities.

Can You Get a Mortgage With a Bad Credit Score?

The lowest credit score category is poor, which ranges from 300 to 579. With a score in this range, you may not qualify for a conventional loan.

However, you can get a mortgage with a low credit score as long as it meets minimum score requirements. A government-backed loan may be your best bet, since some lenders may approve a borrower with a credit score below 580 (say, 500 and up). That said, you may pay more in interest than those with higher scores. You might prefer to wait and build your score before applying for a home loan.

How to Build Your Credit Before Getting a Mortgage

It may be worthwhile to build your credit before you apply for a loan. There are several factors that affect your credit score.

One of the best ways to build your credit score can be to always pay your bills on time. This is the number-one factor in determining the most common credit scores, including FICO and VantageScore.

The second biggest factor is your credit utilization rate, or how much of your available credit you’re using. In general, the less the better. Lenders typically prefer that you use no more than 30% of your available credit. Pay down debt to lower your utilization rate and raise your score.

Recommended: How Long Does It Take to Build Credit?

Factors in Mortgage Preapproval

A mortgage preapproval is a statement from a lender that you are likely to qualify for a mortgage. It can be a helpful document to show sellers as it can demonstrate that you are serious about making a purchase and likely to receive financing.

For a preapproval, lenders typically look at such factors as credit score, income, assets, DTI, and employment verification. Thanks to this financial review, being preapproved can give you a sense of confidence about your ability to go house shopping.

Credit Score Tips

Your credit score is not static. It changes over time, and your score may vary depending on the scoring system used.

The credit reporting bureaus update your score after anything happens that affects your credit. So if you are late with a payment or if your credit utilization climbs higher, you may see your score drop. On the other hand, if you were to lower your credit utilization, you might positively impact your score. These actions can all help build your score: paying your bills on time, every time; managing your credit utilization; not applying for too much credit in a short period of time; having a good mix of credit; and maintaining a longer credit history.

It’s also important to monitor your credit score and regularly examine your credit report for errors. (You can check your credit report without paying each week from each of the credit reporting bureaus: Experian®, Equifax®, and TransUnion®.)

If you catch a mistake, dispute the error with the credit reporting bureau immediately to prevent it from dinging your score.

You may be able to build a stronger credit score with the help of healthy financial habits, such as budgeting and saving regularly, which can help you stay out of debt and manage payments. You might use spending apps and money tracker apps in this pursuit. A good place to start: See what your financial institution offers. You can also search online for third-party tools.

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

The Takeaway

Your credit score can impact the type of loans you qualify for, as well as the terms and interest rates lenders may offer. For a conventional home loan, you will typically need a score of 620 or higher, and a score of 700 and up for a jumbo loan. Government-backed loans, such as FHA, VA, and USDA loans, however, may accept credit scores in the 500s. Those with lower scores will typically pay higher interest rates.

While you may qualify for a loan with the minimum required credit score, it may be beneficial to monitor and build your score before taking out a loan to reduce the overall cost of borrowing.

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 decent credit score for buying a house?

On average, homebuyers had a credit score of 758 in 2024, but you may be able to qualify for a loan with a lower score. Typically, conventional loans are available to those with scores of 620 and up. Usually, higher scores can give access to more favorable rates and terms.

Can you buy a house with a 600 credit score?

With a credit score of 600, you may be able to qualify for a government backed loan, such as an FHA, VA, or USDA loan. Or you might choose to wait and build your score to 620 or higher, which could then give you access to a conventional home loan.

How much house can I afford if I make $70,000 a year?

There are several rules of thumb about how much to spend on housing each year. One common one is that you shouldn’t spend more than 30% of your gross income each month on housing costs including your mortgage and property taxes. That works out to a mortgage payment of about $1,650 each month. You can then use online mortgage calculators to explore how much you can borrow to fit this monthly budget. In some tight housing markets, people may spend more. In fact, one recent study found that more than 20% of homeowners indeed exceeded this amount.

What credit score is needed to buy a $400,000 house?

Securing a mortgage isn’t just a matter of your credit score versus how much the prospective home costs. Several factors will be evaluated by lenders in addition, such as down payment amount, income, and more. For a conventional loan, you likely need a credit score of 620 or higher, while you may access a government-backed loan with a lower score (say, 500 and above) if you meet certain criteria.

Is a 580 credit score good enough to buy a house?

With a credit score of 580, you may qualify for an FHA, VA, or USDA loan. You can work with online tools and specific lenders to see what your odds of qualifying are or seek out preapproval.

How much income do I need for a 300K FHA loan?

The income you need will vary depending on the lender guidelines and other factors, such as down payment funds you may have available, your credit score, and more. It could be helpful to discuss your qualifications with a lender or use an online calculator to see what you could qualify for.

Photo credit: iStock/angkhan

SoFi Relay 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 shall 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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Building a strong credit score takes time, and there is no time like the present to start working on improving your credit score. Even teenagers can help themselves get a leg up in the financial world by playing the credit game responsibly. What is the average credit score for a 19-year-old? According to FICO, the average Gen Zer (ages 18 to 27) has an average credit score of 680.

Keep reading for more insight into the average credit score of a 19-year-old, what factors affect credit scores, and how to build an impressive score.

Average Credit Score for a 19-Year-Old

All young adults can benefit from taking an interest in their credit score. And no matter your age, it helps to understand what credit score range you should be working toward. What’s the average credit score for a 19-year-old? As we mentioned, the average credit score for Gen Zers is 680.

A 680 credit score is considered good, but ideally teenagers and older consumers want to work toward a “very good” or “excellent” score. A very good credit score falls in the 740 to 779 range, and excellent is a score of 780 or higher.

Recommended: How Often Does Your Credit Score Update?

What Is a Credit Score?

A credit score is a three-digit numerical representation of an individual’s creditworthiness that credit scoring models calculate based on the consumer’s credit history. This calculation takes into account factors like payment history, debt levels, and the length of their credit activity.

Lenders use credit scores to assess the risk of lending money or extending credit. In general, the higher a credit score is, the less risk the borrower poses to the lender, as a high score indicates you are a responsible borrower.

Credit scores and credit reports are not the same thing. A credit report is a detailed record of an individual’s credit history, including information on loans, credit cards, payment history, and any bankruptcies or defaults. A credit score, on the other hand, is a numerical value derived from the information in the credit report.

So when it comes to credit, your goal is to keep your credit report healthy so your credit score reflects that good behavior. You can check your credit score from time to time to ensure you’re making progress.

What Is the Average Credit Score?

There is no one standard credit score a 19-year-old should expect to maintain, but understanding what the average credit score is can help teens know what benchmark to work toward. As of October 2024, the average credit score for U.S. consumers was 717, according to FICO. This is categorized as a good credit score.

Average Credit Score by Age

It takes time to build a strong credit score, so young adults shouldn’t be too worried if their starting credit score is on the lower side. You can see from this table how the average credit score improves over time.

What’s a Good Credit Score for Your Age?

Younger borrowers often face a disadvantage in building a high credit score since factors like having a long credit history, diverse credit mix, and consistent payment history require time to develop. However, borrowers typically aim for at least a “good” score and, ideally, over time can make their way into the “very good” or “exceptional” tiers.

How Are Credit Scores Used?

Because the primary use of credit scores is during the credit application process, it’s easy to overlook the fact that credit scores can impact different areas of your life. Yes, primarily lenders use credit scores to help determine if they want to lend money to a borrower and at what terms. But potential employers and landlords can also use credit scores to get an idea of how responsibly you handle money.

Factors Influencing the Average Credit Score

Building and maintaining a good credit score is an ongoing task. Consumers who want to keep their credit score nice and high for many years to come can benefit from learning what factors influence their credit score.

One of the best ways to keep your credit score in good standing is to understand how your credit behavior impacts your score. What affects your credit score? Your FICO Score, the most widely used credit scoring model, is influenced by five key factors. These factors include: payment history, amounts owed, length of credit history, types of credit used, and recent credit inquiries.

The impact of each factor on your overall score varies, with payment history and amounts owed typically playing the largest roles. Other models like VantageScore work in a similar way but may weigh these factors differently.

How to Strengthen Your Credit Score

You don’t have to have perfect credit habits to improve your credit score, but trying to master as many of these factors as you can will help boost your FICO Score over time.

•   Payment history: Missing a payment can negatively affect your score, so always make payments on time. This is the most important factor to stay on top of. If you struggle to stick to a budget, use a spending app to monitor your spending so you can afford to pay off your balances in full at the end of the month.

•   Amounts owed: Keep credit utilization low to show lenders you can manage debt.

•   Length of credit history: A longer history reflects reliability.

•   New credit: Avoid making frequent credit applications in a short amount of time, as doing so can temporarily lower your credit score.

•   Credit mix: Having a diverse mix of credit types suggests strong financial management.

Use a free credit score monitoring tool to track your improvement efforts.

How Does My Age Affect My Credit Score?

How long does it take to build credit? Being older may work in your favor when it comes to credit scores, but unfortunately you can’t speed up the clock.

As you age, you can expect some areas of your credit report to improve. For example, a 40-year-old has had much more time than a college student to build a long credit history, responsibly manage a mix of credit types, and make consistent, on-time payments.

What Factors Affect My Credit Score?

As we discussed, there are a number of factors that go into your credit score. Your payment history, credit utilization ratio, length of credit history, credit mix, and recently opened credit accounts all impact how high or low your credit score is.

At What Age Does Credit Score Improve the Most?

Because so many credit scoring factors rely on the benefit of time to improve naturally, it’s not surprising that we see that older consumers make a lot of credit score progress. Baby Boomers, in particular, may see a dramatic increase in their score compared to younger generations. As of 2023, consumers aged 59-77 have an average FICO Score of 745. Meanwhile, Generation X consumers (ages 43-58) have an average score of 709.

How to Build Credit

It can be challenging to obtain credit unless you already proved you can responsibly handle a loan or credit card. You can use a credit card to start your credit journey. While borrowers with high credit scores qualify for better cards with more favorable rates, you can find credit cards to qualify for with any credit score (even if you need to use a secured credit card to build credit).

Making timely payments is key here — a money tracker app can help you manage bill paying. Also, pay off your balance in full each month to keep your credit score happy and to avoid pesky interest charges.

Credit Score Tips

To maintain a healthy credit score, practice good habits like paying bills on time, keeping account balances under 30% of your credit limit, and avoiding frequent credit applications.

It’s also important to keep older accounts open to build credit history, maintain a diverse mix of credit types, and regularly check your credit report for errors. If you spot discrepancies, be sure to dispute them. These actions can help strengthen your creditworthiness and protect your score over time.

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

The Takeaway

Taking good care of your credit score makes it easier to obtain favorable borrowing rates and terms. Consistency is key here. If you can master good credit habits at age 19, it gets easier and easier to keep your credit score nice and healthy.

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

How to raise your credit score 200 points in 30 days?

Raising your credit score by 200 points in 30 days is challenging but may be possible in some situations. To start, pay off any outstanding balances, particularly high-interest ones, and reduce credit card utilization below 30%. Lowering this ratio is one of the fastest ways to see credit score movement. You can also consider disputing any inaccuracies in your credit report for a quick fix (if an error occurred that is harming your credit score).

Is a 650 credit score good at 18?

Having a credit score of 650 at the age of 18 is very impressive. While this is only a “fair” credit score by FICO standards, it’s a strong step in the right direction, and most teenagers don’t have an immediate need for a super high credit score.

How to get 800 credit score in 45 days?

Achieving an 800 score in 45 days is difficult unless you already have a very high credit score. To make swift progress, focus on paying off existing debt, reducing credit utilization, and ensuring all payments are made on time.

How to get a 600 credit score at 18?

The only way to have a credit score of 600 at 18 is to hit the ground running. Your parents can help you build your credit score before turning 18 by making you an authorized user on their credit card, or you can open a secured credit card when you turn 18. And be sure to make consistent, on-time payments to the card.

Can you get a 700 credit score in 6 months?

Achieving a 700 credit score in six months is possible, but how realistic this goal is depends on your current credit score and how committed you are to improving it. Focus on paying down high-interest debt, keeping credit utilization low, making all payments on time, and ensuring your credit report is accurate.

What is the starting credit score for an 18-year-old?

The starting credit score for an 18-year-old is 300 (unless their parents helped them build a credit history before they turned 18). To make it easier to build their credit score at a young age, 18-year-olds can open a credit account, such as a secured credit card. That way, they can start building their score by making responsible payments.

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

SoFi Relay 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 shall 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 .

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.

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-Q424-034

Gross income is the amount of money earned before any payroll deductions for taxes, insurance, retirement contributions, and such. To calculate gross monthly income from a biweekly paycheck, find the gross amount listed on the pay stub (usually the starting number). Multiply that figure by 26 (the number of paychecks received in a year), then divide by 12 (months in a year).

The calculation for gross monthly income can differ depending on paycheck frequency. Below we’ll show you how to calculate your gross pay for different payroll schedules.

How to Calculate Monthly Pay From Biweekly Pay

There are two different monthly pay figures to understand, gross and net. Each is useful in different situations. When you’re applying for a loan, most lenders use gross monthly income to determine your debt-to-income ratio (DTI). However, many people find it easier to budget based on net or take-home pay. A budget planner app can help you decide the best approach for your situation.

As we spelled out above, if you’re paid biweekly (every two weeks), the formula for gross monthly income is:

(Gross pay amount × 26) ÷ 12

Hourly workers can also use this next formula if they work a consistent number of hours per week:

(Hourly salary × weekly hours worked × 52) ÷ 12

To find net monthly pay, substitute the actual amount of your paycheck for the gross amount in the first formula.

Recommended: Does Net Worth Include Home Equity

How Many Bi-Weeks in a Year

There are 26 biweekly pay periods in a year. Employees who get paid biweekly will receive 26 paychecks from January to December.

It’s important to note that receiving pay biweekly differs from receiving pay twice a month on the same dates. Workers who receive biweekly checks can’t just multiply one paycheck by two to find their monthly salary.

Employees who get paid twice a month — for instance, on the 15th and 30th — can find their monthly gross income simply by adding together the gross figures on their two monthly paychecks.

Recommended: 52 Week Savings Challenge (2024 Edition)

The Different Types of Payment Periods

The most common pay periods for employees are:

•   Biweekly: Paid every other week, or 26 paychecks per year.

•   Semimonthly: Paid twice a month on the same dates, or 24 checks per year.

•   Weekly: Paid once a week, or 52 checks per year.

•   Monthly: Paid once a month, or 12 checks per year.

Employees who receive biweekly pay get two checks or direct deposits each month, except for two months of the year when they receive three paychecks. Employees who are paid biweekly might get a paycheck every other Wednesday or Friday, or whatever day their employer chooses.

With semimonthly pay, an employee might get paid on the 15th and 30th of every month. There are always two paydays, for a total of 24 per year instead of 26.

An employee who gets paid twice a week is on a semiweekly schedule. This would entail eight paychecks each month.

Pros and Cons of Biweekly vs Semimonthly Pay

For employees, there are pros and cons to biweekly pay. Depending on their expenses and savings strategy, someone might prefer a biweekly or semimonthly schedule.

For most workers, the main pro to biweekly pay is the third “bonus” check they receive two months out of the year. By budgeting for two paychecks every month, workers can designate the occasional third check for special line items like vacations, holiday gifts, paying off debt, or boosting savings.

For others, biweekly checks just make budgeting and managing expenses more challenging. Semimonthly pay is preferable because it offers an accurate reflection of real monthly income.

Also, each semimonthly check can be dedicated to particular expenses. For example, the second check of the month can go to rent, utilities, and other housing costs, which are often due the first of the month.

Compared to weekly paychecks, both biweekly and semiweekly checks require better cash management on a weekly basis. For someone who lives paycheck to paycheck, biweekly pay periods might mean they run out of money before the next check arrives.

The Takeaway

To calculate gross monthly income from a biweekly paycheck, find the gross amount listed on the pay stub, multiply by 26, then divide by 12. (Do not use this formula if you’re paid twice a month on the same dates, rather than the same days of the week.) For your monthly net pay, substitute your net or take-home pay for the gross amount in the same calculation.

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

How do you convert biweekly pay to monthly income?

To calculate gross monthly income from a biweekly paycheck, find the gross amount listed on the pay stub (usually the starting number). Multiply that figure by 26 (the number of paychecks received in a year), then divide by 12 (months in a year).

How do I calculate my gross monthly income?

Gross monthly income is the total of all paychecks and income received in a month, including any side hustles, rental income, etc., but before taxes and other deductions.

How do you calculate gross income from a W-2 form?

Gross wages cannot always be found on a W-2 form due to various pre-tax deductions. Instead, look at the gross amount listed on the employee’s final paycheck for the year.

Photo credit: iStock/Eva-Katalin

SoFi Relay 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 shall 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.

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.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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