Okay, I'll admit it. I'm bit of a financial planning nerd and I recently hit a personal milestone I've been working towards for years: a perfect credit score.
While most people do not need an 850 to live their best financial life, building and maintaining strong credit is a smart long game. It can lead to lower interest rates, better loan terms, higher credit limits, and even reduced insurance premiums.
So how did I get here? Honestly, it started simple. I opened my first card at 18 with just a 300 dollar limit. I used it for small purchases, paid it off in full each month, and let the history build. That early start gave me the foundation I needed.
Average Credit Scores by Age
If you are wondering where you stand, here is a snapshot of average FICO scores in the U.S. as of 2024:
- Ages 18 to 25: 680
- Ages 26 to 41: 687
- Ages 42 to 57: 707
- Ages 58 to 76: 742
- Ages 77 and up: 760
A perfect score is rare, but aiming for a high score is still worth it. Here are a few things that helped me along the way and could help you too.
Three Tips to Boost Your Credit Score
- Make small payments throughout the month: Instead of waiting to pay your credit card bill once a month, try making smaller payments throughout the billing cycle. This keeps your balance low and helps your credit utilization rate.
- Skip the store credit card offers: It might be tempting to get that 20 percent off at the checkout, but opening too many new accounts in a short time can hurt more than help.
- Keep your older cards open: Even if you no longer use them, keeping old accounts helps strengthen your credit card history. Just make sure there are no annual fees attached.
Strong credit is just one piece of the financial puzzle, but it is a powerful one. If you have questions or want help building your credit strategy, I am always happy to chat!