Melanie Lockert is the founder of the blog and author of the book, Dear Debt. Through her blog, she chronicled her journey out of $81,000 in student loan debt. Her work has appeared on Business Insider, Time, Huffington Post and more. She is also the co-founder of the Lola Retreat, which helps bold women face their fears, own their dreams and figure out a plan to be in control of their finances.
A "good" credit score in your 20s is typically lower than the national average due to limited credit history, with the average score for 18- to 27-year-olds around 681.
Credit scores are based on factors like payment history, credit utilization, credit age, credit mix, and new credit, using the FICO® range of 300 to 850.
A strong credit score matters because it affects loan and credit card approval, interest rates, housing applications, and long-term borrowing costs.
Young adults can build credit by paying on time, keeping utilization below 30 percent, maintaining older accounts, diversifying credit types, avoiding multiple new accounts, and monitoring their credit regularly.
Building a good credit score is essential to your financial life in your 20s. A good credit score can mean better interest rates on loans and credit cards, while a poor credit score can limit your options. But what's the average credit score for a 20-year-old, and how can you build your credit in your 20s?
A credit score is a three-digit number that represents how credit-worthy you are. In other words, this number tells lenders how likely you are to repay your loans and if you're a responsible borrower. The most common credit scoring model is the FICO® Score,* which ranges from 300 to 850.¹ The higher your score, the better your credit is.
Learn more about what constitutes a "good" credit score and how to build your credit in your 20s and beyond.
FICO® has different categorizations for credit scores. Here's how the scores are broken down.¹
Credit score range | FICO® Score rating |
|---|---|
Less than 580 | Poor |
580-669 | Fair |
670-739 | Good |
740-799 | Very Good |
800+ | Exceptional |
The average FICO® Score has been steady recently at 715.² However, a good credit score for a 20-year-old is likely lower. That's because if you're in your 20s, reaching a score of 700 or higher may be challenging as you're just establishing your credit history.
In your 20s, you're still beginning your financial journey. One of the categories to determine your credit score is the length of your credit history. Only time can help that part, so if you maintain good financial habits, the hope is that your score will elevate as you get older.
Your credit scores can differ drastically by age and the stage of life you're in. Many factors, such as your credit history and experience with credit, will determine your credit score. So, what is the average credit score? The average credit score by age in 2024 was as follows:²
Age range | Average credit score (2024) |
|---|---|
79+ | 760 |
60-78 | 746 |
44-59 | 709 |
28-43 | 691 |
18-27 | 681 |
The average credit score for a 20-year-old will be lower than other generations because you're just starting out. In your 30s, your credit should start seeing some upward movement as you've now had more time to build upon the credit you opened in your 20s. After your 30s, your credit should continue to rise.
The average credit score for a 20-year-old in 2024 was 681.² Gen Z (age 18-26) had an average credit score of 681, while Millennials (age 27-42) averaged 691. Based on these numbers, the average credit score by age 25 should be around 680.
Let's be honest: your credit score can seem pretty arbitrary, but in reality, credit scores are so important when getting your first apartment or applying for your first credit card.
Why is this? Because your credit score can make or break whether you get approved for an apartment or a credit card. It can even affect your interest rate; a lower credit score generally equates to a higher interest rate, and vice versa.
Credit scores affect interest rates over time, and interest can cost you a lot of money if you take out a loan. Even the difference between a few percentage points can cost you hundreds or thousands of dollars in interest.
A good credit score can help you save money and get better interest rates.
People in their 20s often don't have much credit history, which often means a lower score. Your credit score updates about once a month, so you can boost your score quickly by being financially responsible. After learning what affects your credit score, consider these actions to build or boost it.
The most important rule is to make all your payments on time. Your payment history determines 35% of your FICO® Score, which has the most significant impact.³ Set up automatic payments where possible to prevent missing due dates, or use your phone's reminder or calendar app to keep you on track.
Your credit utilization is how much of your total credit you use. Credit utilization makes up 30% of your FICO® Score.3 A 30% or less credit utilization ratio is generally considered good.⁴ For example, if you have a credit limit of $5,000 over two or three credit cards, you'll want to keep your total balance at $1,500 or lower.
If your balance is higher than 30% of your total available credit, make a plan to pay it down, which will boost your credit score.
You might assume that closing a credit card when you're not using it can benefit your credit, but the opposite may be true. Your FICO® Score is partially calculated (15%) based on the length of your credit history.³ This includes the ages of your oldest and newest accounts and the average age of all your accounts.
Closing an old credit card can shorten your credit history, and you might see a dip in your credit score.
Credit mix accounts for 10% of your FICO® Score.³ Only having credit cards or loans can hurt your credit score. Instead, aim for a mix of credit cards and installment loans to improve your credit mix.
New credit makes up 10% of your FICO® Score.³ Try not to open too many new lines of credit at once. Doing so quickly can look risky to lenders and lower your credit score, especially if you don't have a long credit history.
Keeping an eye on your credit score lets you know how you're doing and can be motivating when you see the numbers go up. You can check your credit score by signing up for an account with one of the three major credit bureaus (Experian, Equifax, or TransUnion). Alternatively, check whether your credit card issuer or lender offers free credit scores as one of their perks.
Being financially responsible in your 20s and learning how to start building credit can help you boost your score in the long term. While the average credit score for a 20-year-old is 680, which is considered "Good," you can continue to increase your score through your 20s and beyond, helping you land that apartment, buy a new car, or get your first rewards credit card.
Once you've achieved good credit, learn how to maintain a good credit score and stay in good financial standing.
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This guide is for informational purposes only. Chime does not provide financial, legal, or tax advice. You should check with your legal, financial, or tax advisor for advice specific to your situation.
Information from myFICO’s “What is a Credit Score?” as of April 17, 2025: https://www.myfico.com/credit-education/credit-scores
Information from Experian’s What Is the Average Credit Score in the US? as of Jan. 27, 2025: https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/
Information from myFICO's "What's in my FICO® Scores?" as of November 12, 2025, https://www.myfico.com/credit-education/whats-in-your-credit-score
Information from Experian’s “What Is a Credit Utilization Rate?” as of November 12, 2025: https://www.experian.com/blogs/ask-experian/credit-education/score-basics/credit-utilization-rate/
Third-party trademarks referenced for informational purposes only; no endorsements implied.
FICO® Scores are developed by Fair Isaac Corporation. The FICO Score provided by ConsumerInfo.com, Inc., also referred to as Experian Consumer Services ("ECS"), in Experian CreditWorks℠, Credit Tracker℠ and/or your free Experian membership (as applicable) is based on FICO Score 8, unless otherwise noted. Many but not all lenders use FICO Score 8.
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