Answer: 800-850 with 23.3% of people in that range

Questions:

• What are some of the disadvantages of having a low credit score?
• What are some advantages of having a high credit score?
• Why do lenders use credit scores? How is this information helpful in running their business?
• Should you be discouraged if your credit score isn't 800-850? Explain why or why not.

Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (WalletHub):

"The average credit score in the U.S. is 695 based on the VantageScore model and 714 based on the FICO score model. That means the average American has a good credit score.

Credit score averages vary based on geography and demographics, however. For example, while the average credit score in the North hovers around 728, it’s about 30 points higher in all other parts of the country. Additionally, individuals in their 20’s have an average credit score of 679, while people in their 50’s have an average credit score more than 60 points higher."

To learn more about FICO scores reaching all-time highs during the pandemic, read this CNBC Article

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Pair this question of the day with these popular Managing Credit activities: Interactive: FICO Credit Scores and Calculate: Impact of Credit Score on Loans

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About the Author

Mason Butts

After graduating from UCLA with a Master's in Education, Mason spent 5 years as a science educator in a South Los Angeles public high school. He is committed to supporting the holistic growth of all students and empowering them to live a life of relational, academic, and financial success. Now settled in the Bay Area, Mason enjoys facilitating professional developments and partnering with educators as they prepare students for a bright financial future. When Mason is not building curriculum or planning a training, he can be found cycling, trying new foods, and exploring the outdoors.