More than 40% of Americans say their credit score has kept them from qualifying for a financial product, according to a LendingTree survey. Yet, many people don’t know what their score is or how it works. Surveys have found that about 4 in 10 Gen Z adults don’t know their credit score, and nearly 1 in 5 have never checked it.
Credit scores matter because lenders, landlords, and even utility companies may consider them when making decisions. Knowing the basics can help you better understand what influences your score and how it may affect your financial opportunities.
How Often Should You Check Your Credit Score?
Your credit score can change frequently—sometimes every month—as lenders update the information they report. Because of this, your score from several months ago may not reflect your current situation.
The Consumer Financial Protection Bureau (CFPB) recommends checking your credit reports at least once a year to make sure the information is accurate. You can request free weekly credit reports from the three nationwide credit bureaus (Equifax, Experian, and TransUnion) through AnnualCreditReport.com, which is the only site federally authorized for this purpose.
What Factors Affect a Credit Score?
Credit scores are calculated using several types of information from your credit history. While there are different scoring models, according to FICO, the factors generally considered include:
- Payment history (35%): Whether you’ve paid past credit accounts on time
- Amounts owed (30%): How much of your available credit you’re using compared to your limits
- Length of credit history (15%): How long your credit accounts have been established
- Credit mix (10%): The variety of credit types, such as credit cards, auto loans, or mortgages
- New credit (10%): How often you apply for and open new accounts
Other details may also play a role, such as records of bankruptcies or other public financial judgments.
Credit Score Ranges
Credit scores usually fall between 300 and 850, though the exact ranges can vary depending on the scoring model. According to Experian, scores are generally grouped into the following categories:
- Poor (300–579): Borrowers in this range may be viewed as higher risk by lenders
- Fair (580–669): This range is sometimes considered “subprime,” meaning lenders may approve applications but possibly with less favorable terms
- Good (670–739): Applicants in this range are often seen as more reliable, and lenders may be more willing to extend credit
- Very Good (740–799): Lenders may consider borrowers here to have strong credit histories, which could make approvals easier
- Excellent (800–850): Scores in this range are often associated with the lowest level of credit risk
It’s important to remember that a credit score is just one factor lenders may review. Income, employment history, and other financial details can also influence lending decisions.
Average Credit Scores in the U.S.
Credit scores in the United States have held steady but slightly declined. According to FICO, the average FICO Score in April 2025 was 715, down two points from April 2024. This still falls into the “Good” range.
Scores can also vary based on factors like age, geography, and economic trends. For example, Experian reports that average scores range from about 742 in Minnesota to 680 in Mississippi. Generational differences are also clear: Baby Boomers average 746, while Gen Z averages around 681, reflecting how shorter credit histories affect younger consumers.
Checking Your Credit Report for Errors
Mistakes in credit reports are more common than many people realize. If you notice an error, you have the right to dispute it with the credit bureau that issued the report. Each of the three nationwide credit bureaus—Equifax, Experian, and TransUnion—provides information on its website about how to submit a dispute, along with the types of documentation you may need to include. Once a bureau receives a dispute, it is generally required to investigate and verify the information with the creditor that reported it.
When Debt Becomes a Challenge
If debt is making it hard to stay on top of your payments, it can feel overwhelming. While managing credit is one part of financial health, sometimes the bigger issue is the amount of debt itself.
SmartSpending offers a program that helps people resolve their unsecured debt. If you’re ready to explore your options, reach out today for a free consultation and see if our program could be the right fit for you.
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