The average U.S. credit score in April 2025 is 715, according to FICO’s latest data—representing a two-point drop from April 2024 and the largest year-over-year decline since the Great Recession. While 715 still falls within the “good” credit range (670-739), this downward trend signals significant changes in the American credit landscape that could affect your financial opportunities.
The decline is primarily driven by the resumption of federal student loan delinquency reporting, which began appearing on credit reports in early 2025 after a multi-year pause. Additionally, rising interest rates, increased credit card utilization, and elevated delinquency rates have created headwinds for consumer credit scores across the country.
Understanding where you stand compared to the national average—and what’s driving these changes—can help you protect your credit score and position yourself for better financial opportunities. Whether you’re planning to buy a home, finance a car, or simply want to improve your creditworthiness, this guide breaks down everything you need to know about the average credit score in 2025 and how to rise above it.
What the Average Credit Score of 715 Really Means
A credit score of 715 is classified as “good” on the FICO scale, which ranges from 300 to 850. This means that while most Americans can qualify for credit cards, auto loans, and mortgages, they may not receive the absolute best interest rates or terms available.
Here’s how credit scores are categorized:
- Poor (300-579): Difficulty obtaining credit; very high interest rates
- Fair (580-669): Limited credit options; high interest rates
- Good (670-739): Decent credit options; average interest rates
- Very Good (740-799): Strong credit options; competitive interest rates
- Exceptional (800-850): Best credit options; lowest interest rates
While 715 qualifies you for a conventional mortgage (minimum 620 required), it falls about 45 points short of the 760 needed to secure the best home loan rates. This gap can translate to tens of thousands of dollars in additional interest over the life of a mortgage.
The Financial Impact of Being Average
A credit score of 715 versus 760 can mean:
- Mortgage rates: 0.25% to 0.5% higher interest rate, costing $50-$100+ more per month on a $300,000 loan
- Auto loan rates: 1-2% higher APR, adding hundreds to your monthly payment
- Credit card approval: Access to good cards, but not premium rewards cards with the best perks
- Insurance premiums: Higher rates in states that use credit-based insurance scores
Moving from “good” to “very good” or “exceptional” credit can save you thousands of dollars annually across multiple financial products.
Why Average Credit Scores Are Declining in 2025
Several key factors are driving the two-point decline in average credit scores from 2024 to 2025, with the resumption of student loan delinquency reporting being the primary catalyst.
Student Loan Delinquencies Are Back on Credit Reports
The moratorium on federal student loan payments was lifted in October 2023, followed by a one-year grace period during which late or missed payments weren’t reported to credit bureaus. That “on ramp” period ended on September 30, 2024, but federal student loan delinquencies aren’t reported until 90 days past due.
This means delinquent payments began appearing on credit reports in early 2025, affecting millions of borrowers. More than two million borrowers saw credit score drops of 100 points or more in the first quarter of 2025, and over one million lost 150 points or more.
Rising Credit Card Utilization
Americans used an average of 36.1% of their available credit limit in February 2025, compared to 21.3% in 2024 and 20.5% in 2023. This dramatic increase signals that consumers are relying more heavily on credit to cover everyday expenses as inflation and high interest rates strain household budgets.
Credit utilization accounts for 30% of your FICO Score, making this one of the most significant factors affecting the national average.
Increased Delinquency Rates
The share of consumers with a 90+ day delinquency in the past six months increased from 7.4% in January to 8.3% in February 2025—a 12% relative rise, and the first time this figure has surpassed pre-pandemic levels.
Higher delinquencies reflect ongoing economic pressures, including persistent inflation, elevated interest rates, and a gradually softening job market.
Buy Now, Pay Later (BNPL) Reporting Changes
Scoring giant FICO has decided to incorporate Buy Now, Pay Later (BNPL) data into its scoring system. While BNPL services like Afterpay, Klarna, and Affirm previously went unreported, missed payments on these accounts will now negatively affect credit scores, catching some consumers off guard.
How Your Credit Score Compares by Age Group
Age plays a significant role in credit scores, with younger generations having average scores in the good credit range (670-739), while older generations have average scores in the very good range (740-799).
Here’s the breakdown by generation:
Generation Z (ages 18-27): Average score of 681 Millennials (ages 28-43): Average score of 690 Generation X (ages 44-59): Average score of 709 Baby Boomers (ages 60-78): Average score of 745 Silent Generation (ages 79+): Average score of 760
The gap between the youngest and oldest Americans reflects several factors: length of credit history (which accounts for 15% of your score), accumulated wealth and financial stability, more diverse credit mix including mortgages and paid-off loans, and decades of financial experience and recovery from past mistakes.
From 2024 to 2025, Gen Z experienced the largest drop in their average credit score—3 points—and were more likely to have experienced a 10-point drop over the past year than Americans overall, 14.1% to 10.1%.
Average Credit Score by State: Where Does Your State Rank?
Minnesota residents have the highest average credit score in 2025 at 743, while Mississippi has the lowest at 677. Geographic differences in credit scores often reflect regional economic conditions, cost of living, median household income, and local employment opportunities.
Top 10 States with Highest Average Credit Scores (2025)
- Minnesota – 743
- Vermont – 737
- New Hampshire – 736
- Wisconsin – 738
- South Dakota – 735
- North Dakota – 734
- Massachusetts – 732
- Washington – 731
- Hawaii – 730
- Nebraska – 729
Bottom 10 States with Lowest Average Credit Scores (2025)
- Mississippi – 677
- Louisiana – 690
- Alabama – 692
- Arkansas – 695
- Georgia – 695
- Texas – 695
- Oklahoma – 697
- South Carolina – 698
- West Virginia – 699
- New Mexico – 700
States in the Northeast and Upper Midwest tend to have higher average scores, while Southern states generally have lower averages. These patterns correlate with factors like median income, unemployment rates, and cost of living pressures.
The 5 Factors That Determine Your Credit Score
Understanding how credit scores are calculated is essential for improving your credit. FICO Scores are composed of five key factors, each weighted differently:
Payment History (35%)
What it measures: Whether you pay your bills on time
Why it matters: Your payment history is a key factor in your credit score. Even one 30-day past due payment can drop your score by 60-100 points.
How to improve: Set up automatic payments for at least the minimum amount due, use calendar reminders for due dates, and pay bills twice monthly if cash flow is tight.
Amounts Owed (30%)
What it measures: How much credit you’re using compared to your total available credit (credit use ratio)
Why it matters: High credit use signals financial stress to lenders. Using more than 30% of your available credit can lower your score.
How to optimize: Pay down balances below 30% of limits (10% or less is ideal), request credit limit increases to improve your ratio, and make multiple payments throughout the month to keep reported balances low.
Length of Credit History (15%)
What it measures: How long you’ve had credit accounts, including your oldest account, newest account, and average age of all accounts
Why it matters: Longer credit histories provide more data about your financial behavior, which generally benefits your score.
How to improve: Keep old credit cards open even if you rarely use them, avoid closing accounts unless there’s a compelling reason, and become an authorized user on someone else’s long-standing account.
Credit Mix (10%)
What it measures: The variety of credit types you manage—credit cards, mortgages, auto loans, personal loans, etc.
Why it matters: Successfully managing diverse types of credit shows financial versatility.
How to optimize: Don’t open accounts just for credit mix, but when you need credit, consider diversifying your portfolio naturally over time.
New Credit (10%)
What it measures: How many new accounts you’ve opened and recent hard inquiries on your credit report
Why it matters: Opening multiple accounts in a short period can indicate financial distress and temporarily lower your score.
How to improve: Space out credit applications, use rate shopping periods (14-45 days for mortgages/auto loans count as one inquiry), and only apply for credit you genuinely need.
Proven Strategies to Beat the Average and Improve Your Score
If your credit score is at or below the national average of 715, these strategies can help you climb into the “very good” or “exceptional” range.
Focus on Payment History Above All Else
Since payment history accounts for 35% of your score, this should be your top priority. One strategy that works: Set all recurring bills to autopay for at least the minimum payment, then manually pay additional amounts when possible. This ensures you never miss a payment while still maintaining control over your cash flow.
Aggressively Reduce Credit Card Balances
Paying down debts is the surest way to lower your credit utilization ratio, which accounts for 30% of your score. If your use is above 30%, consider:
- Using the avalanche method (paying highest interest cards first) or snowball method (paying smallest balances first)
- Making payments twice per month to keep reported balances low
- Using windfalls (tax refunds, bonuses) to eliminate high-interest debt
- Requesting credit limit increases without increasing spending
Review Your Credit Reports for Errors
Nearly half (44%) of participants in a 2024 Consumer Reports study found mistakes in their reports from Equifax, Experian, and TransUnion. Of them, 27% said the errors could have negatively affected their score.
Common errors include accounts that don’t belong to you, incorrect delinquent payment notations, duplicate accounts, and closed accounts showing open (or vice versa).
You can get free credit reports from all three bureaus at AnnualCreditReport.com. Review them carefully and dispute any inaccuracies immediately.
Become an Authorized User
If you have family members with excellent credit and low use, ask to be added as an authorized user on their account. You’ll benefit from their positive payment history and credit age, potentially boosting your score by 20-50 points or more.
Important: Ensure the primary cardholder has an excellent payment history—delinquent payments will hurt your score too.
Consider Alternative Credit Data
If you have limited traditional credit, add rent and utility payments to your credit report through services like:
- Experian Boost (free): Adds utility, phone, and streaming service payments
- Rent reporting services: Add monthly rent payments to your credit file
- Self-Credit Builder: Helps build credit through a credit-builder loan
These alternative data sources can be especially valuable for younger consumers or those with thin credit files.
What Your Credit Score Means for Major Financial Decisions
Your credit score directly affects your ability to achieve major financial goals. Here’s how the national average of 715 stacks up for common lending scenarios:
Buying a Home
Minimum requirement: 620 for conventional mortgages; 580 for FHA loans 715 score: You qualify, but not at the best rates 760+ score: Lowest interest rates available Impact: On a $350,000 30-year mortgage, improving from 715 to 760 could save you $50,000-$75,000 in interest
Auto Loans
Minimum requirement: No hard floor, but rates increase significantly below 660 715 score: “Prime” interest rates (typically 6-9% in 2025) 760+ score: “Super prime” rates (typically 4-7% in 2025) Impact: On a $35,000 auto loan, the difference between prime and super prime rates can mean $1,500-$2,500 in total interest
Credit Cards
Minimum requirement: Varies by card; premium rewards cards typically require 700+ 715 score: Access to good rewards cards but not the best sign-up bonuses 760+ score: Eligible for premium cards with $500-$1,000+ sign-up bonuses and superior benefits Impact: Premium cards offer better rewards rates, airport lounge access, travel credits, and other valuable perks
Personal Loans
Minimum requirement: 580-600 for most lenders 715 score: Competitive rates, typically 10-15% in 2025 760+ score: Best rates, typically 7-12% in 2025 Impact: On a $20,000 personal loan, better rates can save you $1,000-$2,000 over a 5-year term
Common Credit Score Myths Debunked
Misconceptions about credit scores can lead to costly mistakes. Let’s clear up the most common myths:
Myth: Checking your own credit hurts your score. Truth: Checking your own credit is a “soft inquiry” that doesn’t affect your score. Only hard inquiries from lenders can temporarily lower it by a few points.
Myth: Carrying a small balance on credit cards helps your score. Truth: You don’t need to carry a balance to build credit. Paying in full each month is better—it saves you money on interest while still building a positive payment history.
Myth: Closing old credit cards improves your score. Truth: Closing cards typically hurts your score by reducing your available credit (increasing utilization) and potentially lowering your average account age.
Myth: Income affects your credit score. Truth: Your income isn’t part of your credit score calculation. However, lenders do consider income when evaluating your ability to repay debt.
Myth: You only have one credit score. Truth: You have dozens of credit scores. FICO and VantageScore each have multiple versions, and scores vary across the three credit bureaus based on the data each has.
How Long Does It Take to Improve Your Credit Score?
The timeline for credit score improvement depends on your starting point and the strategies you use:
Fixing errors on your report: 30-60 days after dispute resolution Reducing credit utilization: As soon as the lower balance is reported (typically 30-45 days) Adding positive payment history: 3-6 months to see meaningful impact Recovering from a late payment: 6-12 months for significant recovery; full recovery may take 2-3 years Recovering from collections or charge-offs: 12-24 months of positive behavior needed for substantial improvement
The fastest improvements typically come from:
- Paying down credit card balances below 30% (ideally below 10%)
- Correcting errors on your credit report
- Becoming an authorized user on someone’s excellent account
- Adding alternative credit data (rent, utilities) to thin files
Consistent, positive credit behavior over 6-12 months can typically boost your score from 715 to the “very good” range (740+).
Frequently Asked Questions
What credit score is needed to buy a house in 2025?
The minimum credit score for a conventional mortgage is 620, while FHA loans accept scores as low as 580 (with 3.5% down) or 500 (with 10% down). However, to get the best interest rates and terms, you’ll want a score of 760 or higher. The national average of 715 qualifies you for a mortgage but not at the most competitive rates.
Is 715 a good credit score in 2025?
Yes, 715 is considered a “good” credit score and falls right to the national average. It qualifies you for most credit products, including mortgages, auto loans, and credit cards. However, improving 740+ (very good) or 800+ (exceptional) will unlock significantly better interest rates and terms, potentially saving you thousands of dollars.
How can I raise my credit score by 100 points?
Raising your score by 100 points typically requires 6-12 months of focused effort. The fastest strategies include paying down credit card balances to below 10% utilization, disputing and removing errors from your credit report, making all payments on time without exception, and adding positive payment history through rent reporting or becoming an authorized user. The specific timeline depends on your starting score and current credit profile.
Why did my credit score drop in 2025?
If your score dropped in 2025, common reasons include: resumption of student loan delinquency reporting (if you have federal student loans), increased credit card utilization as you relied more on credit, missed or late payments being reported, and new hard inquiries from credit applications. Review your credit reports to identify the specific factors affecting your score.
What’s the difference between FICO and VantageScore?
FICO and VantageScore are different credit scoring models that use similar data but calculate scores differently. FICO is used in 90% of lending decisions and has multiple versions (FICO 8, FICO 9, etc.). VantageScore was developed by the three credit bureaus and more heavily incorporates alternative data like rent and utility payments. While both use the 300-850 scale, your FICO and VantageScore may differ by 20-40 points due to different calculation methodologies.
Take Control of Your Credit Score Today
The average U.S. credit score of 715 tells an important story about the state of consumer credit in 2025—one marked by economic headwinds, rising utilization, and the return of student loan reporting. But being average doesn’t mean you’re stuck there.
Whether your score is below, at, or above the national average, there’s always room for improvement. Moving from good credit to very good or exceptional credit can save you tens of thousands of dollars over your lifetime through better interest rates, higher credit limits, and premium financial products.
The strategies in this guide—from improving your payment history to reducing utilization and correcting errors—are proven to work. The key is consistency and patience. Credit improvement doesn’t happen overnight, but with focused effort over 6-12 months, meaningful progress is achievable.
Ready to stop being average and start maximizing your credit potential? Our credit experts specialize in creating personalized credit improvement strategies that deliver tangible results. We’ll conduct a comprehensive analysis of your credit report, identify hidden opportunities, remove inaccurate negative items, and develop a step-by-step plan to help you reach your credit goals—whether that’s qualifying for a mortgage, securing a better auto loan rate, or simply achieving the peace of mind that comes with excellent credit.
Schedule your free credit consultation today and discover exactly what it will take to move from average to exceptional. Your financial future deserves more than an average credit score—let’s build the credit profile that opens every door.