October 25, 2018

Americans’ Credit Scores Improve as They Age

The silent generation has the best credit, while millennials need to improve.

  • Millennials have the lowest average credit score of any age group (634) while members of the silent generation have the highest (734).
  • Homebuyers with fair credit scores will pay nearly $30,000 more over the life of a mortgage than those with very good ratings.
  • Older Americans have better credit scores in part because of lower child-care costs and student debt, and many may not have such expenses at all.

Back in the summer, an Experian study found that 61 percent of millennials lack a prime homebuying credit score, and now another report highlights how less-than-stellar credit ratings may be hindering more members of that generation from purchasing real estate.

In an analysis of its user data, LendingTree found that the older a person is, the better their credit rating tends to be. Millennials have the lowest average credit score of all generations at 634, rated as fair. Though Gen Xers fare better, with average credit scores of 653, they too fall into the fair bucket.

With scores that average 696, baby boomers are categorized as having good credit. Members of the silent generation — defined as those born between 1928 and 1945 — boast credit scores of 734, making them the only group of Americans who can claim a very good rating.


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