Credit Trends
Our Credit Trends show you how you compare to other Credit Karma members. See where you stand and compare credit scores by state, age and email domain. While these comparisons are fun, they’re also an interesting way to gauge the overall credit health of Credit Karma members.
Based on our data, there is a clear relationship between age and average credit scores. Generally speaking, younger consumers have lower credit scores on average. Take a look at this interactive chart to see what our data says about age and average credit scores.
408 People Helped
im 19, and have a score of 750. on my 18th birthdya i went to my credit union and got a student credit card, and then proceded to pay it off in full every month. i then got a Macys credit card and paid that off in full. three months later i got a nordstrom credit card and that dropped my score by a hundred points almost. i was looking at a 680. so for six moths i balanced the three credit cards making sure my credit utilazatuion was under thirty percent and paying off almost everything. Because i am impulsive i got in way over my head with shopping and found myself spending my whole pay check to cover myt losses. i soon started a budget for my self and stop using both store cards for awhile. my Macys card raised my credit limit, which helped me lover my credit utilaztion score. My nordstrom sis the same and i paid both off and now barely use my one student credit card. i use each only once a month to buy something under thiry bucks from each store to show i have good standing. i have never missed a payment on all three cards. i now i have a score of 750 again since six mothns has passed since i open my nordstom card. all in all, i have learned my lesson, but am still frustrated by how easy it is to swipe without thinking. This has lead me to leaving my cards at home or in my car. i guess for me it was harder than some because i worked in a mall and was surronded by retail. Now im happy with my score and i got a job at a bank, and i now save money while paying off my student loans. i guess what angers me the most is seeing how much i spent with those two cards and realizing i could have paid of my student loans. i hope other people find something to learn from my story
osnat678's comment was:
I'm seeing a lot of young people with this type of credit. A high score doesn't always equate to good credit, or even if you have a high score, lenders will not always pick up for a loan. Young people tend to have hyper inflated scores because in reality, they have no credit. 1 year of paying off your card is not good enough. Lenders don't really start taking you serious until you have had quite a few years under your belt. It took me about 3 years to get a good visa card from my credit union with a limit of $7500, and only then they did it after I had several installment loans that I paid off, and an auto loan. In the same way, not using your credit but having several open accounts is also bad. Lenders will the potential debt you could get into, and if you have 10 cards with $1000 limits each, you have the potential debt of $10,000 and they actually take that into consideration when they look at your debt to income ratio. The best way is to open maybe 2 cards (major cards not store as they have high interest rates) and use them only occassionally being sure to pay them off in 1 month.
hawkne's reply was:
A friend who worked at costco signed me up for an amex to boost her sign up participant numbers and there I was, 19, $10k limit amex. It ended HORRIBLY. I'm still making up for it five years later :-( At least you didn't dig yourself a whole as deep as I did. Had I known the things I know now back then, I'd be in a much different situation. I totally agree that working at a bank forces you to look at your own situation and better yourself. I started working in retail and my paychecks normally went back into what ever store I was working at.
yellorubberducky's reply was:
hawkne, you are incorrect. One of the biggest impacts on a credit score is the length of credit history, which for young people, is usually very low. In order to get the best score, you need to have at 7 years of credit history. Another factor is number of accounts, also low for young people. And credit utilization, which is directly impacted by your credit limit, which is almost always orders of magnitude lower for people with little credit history. The other factor - number of inquiries in the last two years - is also high (lower score) for people just starting to utilize credit, since they have just started opening their accounts. Basically, a person who is just starting to build his/her credit history has a terrible score. I can tell you this from personal experience, as a person who has a relatively new credit history, with no late payments, and has been monitoring it like a hawk.
chopstickapple's reply was:
hawkne, you are incorrect. One of the biggest impacts on a credit score is the length of credit history, which for young people, is usually very low. In order to get the best score, you need to have at 7 years of credit history. Another factor is number of accounts, also low for young people. And credit utilization, which is directly impacted by your credit limit, which is almost always orders of magnitude lower for people with little credit history. The other factor - number of inquiries in the last two years - is also high (lower score) for people just starting to utilize credit, since they have just started opening their accounts. Basically, a person who is just starting to build his/her credit history has a terrible score. I can tell you this from personal experience, as a person who has a relatively new credit history, with no late payments, and has been monitoring it like a hawk.
chopstickapple's reply was:
You forgot one simple thing in your practice. each new credit account splits your credit age average. So taking on that many accounts at once is what hurts your score. But good news is more account less of a split and the faster year lenght of credit goes up. Most people don't realize there is several factors to a heathy credit report. Also having to many types of the same line of credits will hurt you in the lenders eyes. Good example 1 visa,1 master card, 2 store cards, 1 personal loan. 1 morgage. If all your credits are loans it shows you got less borrowing potential, if all is revolving credit it shows you can max every thing out to fast. just few things to consider for a healthy porfolio
ernestf01's reply was:
way to go! you tought a lot Thanks
frog1960's reply was:
I'm 20 and my score is 770+, I've got 6 credit cards and always have utilization under 20%, often under 10%. I never spend money I don't have, I always pay in full. My lowest line of credit from any issuer is $6K, which I got when I was 17, at 19 I got a no set limit Amex.
Best advice: never carry a balance to the next month.
FlyUnited23's reply was:
I have children fifty years old that have yet to learn what you did in a few short years. You are an perfect example of one who uses their head for something besides growing hair.My congratulations to you and whoever raised you.
nralife42's reply was:
I had the same problem! I saw that my credit score was high so I was thinking hmmm why not go and apply for a credit card, thought I could manage it but then temptation got out of hand. So my credit score is EXTREMELY low, very shortly after opening up the accounts. Its good to know that if I just pay off the balances and keep the balance lower than 30% my credit will shoot back up :)
cataclysmic0ne's reply was:
Get rid of the credit cards. Get rid of the problem.
ToddCarnes's reply was:
239 People Helped
The key to high credit scores and low interest loans and or mortgage is to plan ahead and budget.
Why budget? If you have a budget it is less likely that you will be short on money by the time the bill comes (this bill should be paid in full). You should never buy something that you can't afford NOW (exception house and maybe car) so at the end of the month it is paid in full. Keep Util rate between 1% and 9% as creditors want to see responsible and controlled usage. Plan ahead means that if you want to buy a house you (this is a big decision) you begin planning stage at least 1 year prior to the search of a home. This gives you time to verify credit scores, fix anything that is not accurate, lower balances should you have any balances not paid in full, pay off loans to decrease Debt-to-Income ratio, in other words, make yourself as attractive as possible to a potential lender.
There is no excuse to living paycheck to paycheck (save a terrible accident or terminal illness..), if you overspend, don't budget, don't plan ahead then it is YOUR fault that your credit score and life situation aren't as good as they can be.
Crosel's comment was:
There are a lot of elements that go into a GREAT credit score including education, discipline, time. What I mean by that is the fundamentals of how credit works should be taught throughout your highshool education. There is no background on how credit cards, debt to income, and leaving within your means. I have been very blessed with not the money as my parents were not very well to do financially as my dad was a sole income earner working on a factory floor and my mom stayed at home. They saved 20% of their income paying themselves first every paycheck NO MATTER WHAT. They never lived beyond their means and budgeted their money accordingly. I learned these principles from my parents who have taught me more than I could ever put on paper, but the financial message that I received was (1. It's not what you earn, but what you spend that matters, 2. Never leave beyond your means 3. No one cares more about your financial future than you do, so plan as if there is no assistance). They are now just a few years from retirement and they should be set for the rest of their lives,not because of how much they earned, but because of what they did with their hard earned money.
kinngcobra1994's reply was:
EXCELLENT ADVICE ALL TRUE AND ACCURATE BRAVO
Derek19992000's reply was:
I could not have said it better myself.
firespaz's reply was:
It also does not help when the stock market crashes twice in the final 8 years of a person's working years. There is nothing worse than having to live on Social Security because all you worked for in 45 years went down the tubes. That happened to a dear friend of mine who spent many years since high school and the military working as a mechanic. The only thing that allows him to live on SS is because his health care is free with the VA from his military during Vietnam. And his non-taxable income (tiny) as a Commander at an American Legion.
People want to blame others for not understanding how the stock market works, but the truth is not many people have enough knowledge to safe-guard their money on the stock markets. I have seen well-educated people make mistakes that is common even among those with little to no knowledge of stocks. If you can afford it, get life insurance and put money away that is invested in a regular savings account or your mattress (fire proof) or just put it in the bank safe in incraments of $100 bills.
JAG1972's reply was:
Well what is YOUR suggestion to those of us who are sick and all that there are, are medical bills. Some btw were paid with my insurance and are still reporting negative. I have fought one for 5 years now. When will everyone understand these 3 bureaus are not in it for us. Its bad enough to be sick but to be financial affected everyday for 7 days and I promise they all don't just drop off. It will always be my word against them and working with a collections agency is just a waste of my time and money. They lie!! I got one of KC's cc offers 3 weeks ago as they suggested to raise my score...I was just about to get me a new car since 1994 well that next week my credit dropped 70 points for a $300.00 credit..My credit union has no for my car loan.I thought KC was a blessing...wrong I guess...
amanda111669's reply was:
43 People Helped
Its not always true that folks with lower credit scores are not financially responsible, it could be due to unforseen circumstances or situations in life that are beyond their immediate control. Some people feel just because they were born on third base that they scored a triple, if your from a family that bore the financial burden in order to make it easy for you, it may be unfair to critisize others who were born on the opposite side of the tracks. This is by no means an excuse nor should serve as a means to dodge your financial obligations, on the contrary it should motivate you to turn tragedy to triumph. Let's be a little more empathetic because everyones circumstance is totally unique and markedly different. There is only so much you can scrape and scratch and save with a low income but HUGH financial responsibilities.
doc908's comment was:
Right on!!! There should be help for medical bills too.
amanda111669's reply was:
31 People Helped
My strategie is to never charge more on my credit cards than I can pay off in one month. This has meant learning how to not only budget, but to put my needs before my wants. Also to all who are just starting out, one of the most important lessons is to pay yourself first..........savings, 401, pension plan, etc. This is a very important habit to get into. Fashions come and go, styles change with the seasons, but having a good monetary foundation to fall back on in case of emergency is a must. Buying a home that has a mortgage that is within reach of one person's pay check is a must.........big homes are beautiful and expensive to maintain, start small and work up to what you really want. For the last 30 years I have had the equivilent of 6 months net pay in my savings account. It was very difficult at first, but in the long run kept us from defaulting on our mortgage or falling behind on credit card/loan payments if one of us was out of work.
jehilde's comment was:
Excellent advice!
GreatCreditSore's reply was:
23 People Helped
Use credit wisely and I believe your credit score will reflect it.
As a convenience, and to get a 2% rebate, I make almost all my routine purchases wih a no annual fee credit card - but only up to the amount I can pay off in full each month.
The only other times I consider borrowing money are as follows:
1. To purchase income producing assets (e.g. business assets, education, etc.)
2. To purchase appreciating assets (e.g. a mortgage to purchase property)
3. Zero interest "teaser" loans that I will repay before the higher interest kicks in (usually up to a year)
4. Absolete emergencies
My advice:
Instead of going into debt and making monthly loan payments, first put your money into monthly savings. Then when you have accumulated enough, you can use those savings to pay for that car, TV, or vacation you've wanted. You'll save a bundle on interest and sleep better at night without worrying about how you'll be able to pay all your bills.
In short, live within your means. Spend only what you can afford. Save the rest. Borrow only when it is profitable or absolutely necessary -- and only when you know can afford to make all payments on time.
GreatCreditSore's comment was:
21 People Helped
It sucks that they don't teach how to manage your money and use credit in your advantage in high school. They definitely need a finance class that is required. I had to learn about everything myself. I'm 19, and have 4 credit cards, a paid off car loan, and an actual FICO score of 750. Credit karma calls it a 760 but my discover credit card gives free fico score updates. I don't see why people are complaining about others having advantages because not everyone needs one. I worked my way to that score within a year and a half. As soon as I turned 18 I joined the military and got a credit card through USAA. It was only a $300 limit but it was something. That allowed me to build credit towards a discover with a credit limit of $1800. Then I got a car loan paid it off, and applied for a Chase sapphire card which I instantly got accepted for a $5k line. I also have an amazon credit card with another $1800. So people need to stop complaining about how others have had an advantage and just accept the fact that sometimes you're not prepared for life. (With the exceptions of anyone in debt to medical issues which is pretty devastating.)
mikey40lil's comment was:
In my high school, you can't graduate unless you take an economic and financing class. hopefully all high school adopt this.
BrittBritt91996's reply was:
your young, give it time....
Triceec's reply was:
2 People Helped
2 People Helped
I am 22 and have a score of 758. I love being able to constantly track my score and the factors that go into the score. I will graduate college soon and I know that I have an advantage with knowing all of this info about my score.
slash28's comment was:
36 People Helped
35-44 - The mid-life crisis credit score.
stealthscrap's comment was:
585 People Helped
Save your money. Don't spend money you don't have. The 'system' tries to make it appear as 'normal' to borrow. It will enslave you. Being debt free makes you a clearer thinking, straighter acting person. Debt creates fear and dependency. Good for the 'system', bad for you and your family.
akim's comment was:
And sleep better at night too!
dndmusic37's reply was:
You are absolutely correct about this.
Rayjo789's reply was:
I couldn't disagree more. Maybe if you can't handle having credit and always feel the need to max out every loan you ever get, you should live debt free. But for most people living debt free lowers thier standard of living unnecessarily. Are you saying a person should live in an apartment while they save up all the money to buy a house for thirty years, rather than taking out a mortgage and living in the house the whole time? That's just silly. If you aren't an alcoholic, there is no reason not to enjoy alcohol occasionally and in moderation. The same is true of debt. If you can handle it responsibly, then you should enjoy the perks of the modern credit system.
SonyaQueue's reply was:
I hate being in debt. Whenever I make large payments on my credit cards or loans, my dad wonders why. I do it because I hate the feeling of being in debt. When I finish school, I'm going to pay off my student loans ASAP so I can be free.
banditd92's reply was:
I agree that it is ipmortant to save money. In today's system, it can be hard to save enough for an average home (in Southern Maine, this is usually over $200,000), a car, expensive dental work, and so on. For these last 3, credit can be very helpful. Managing your money, ensuring you do not overallocate your funds is key to both saving and creating solid payment history/improving credit scores. No credit = low scores.
Artelahe's reply was:
how can i climb out of this hole??? i have 2 r-9s but other than that i am only 2900 behind with med bills but idk how to get in contact with wehatever collection agency they are with
mdc1986's reply was:
I could not agree more.
cbrown3381's reply was:
The average investor tries to minimize debt. The rich investor increases debt in their favor.
rbai76's reply was:
That's what I thought too. I have more than enough money I NEVER need to use a credit card but sadly that is not how society works.
To get a mortgage or loan of any type you have to have an established credit history regardless of the down payment %. I was going to buy a home with 20% down only to get turned down because I have no credit history.
cweb10's reply was:
i differ in your opinion. There is nothing wrong with debt. If not for loans how would anybody purchase a house? Secondly there are time when you can get a low interest loan to make a large purchas over many years in which the interest would be equivelant to inflation. The key is only borrow what you can affod to pay back, be educated about how much borrowing will cost (in interest, payments), and don't agree to anything crazy like variable interest mortages, leasing a vehicle instead of purchasing, extremely high interest vehicle/credit card/personal loans.
To sum it all up. Debt is fine as long as you understand it and make an educated decision.
firespaz's reply was:
I agree! I am twenty years old and everyone depends on credit or loans. I was raised to never spend more than you have, and I could not be happier. I am in college debt and loan free! Everyone else is going to be enslaved by these "student loans" that will take the rest of their lives to pay off.
punkidiotfrog's reply was:
So whats the point of monitoring your credit if you're against debt to the system?
astro21's reply was:
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