Average Credit Statistics
As a company that helps the nation’s largest banks and financial institutions assess credit risk, Fair Isaac is often asked to describe the credit use of a typical consumer. In researching the answer, Fair Isaac discovered that consumers vary immensely in what types of credit they use and how they use it.
By analyzing a representative national sample of millions of consumer credit profiles, Fair Isaac was able to survey the panorama of credit activity across the U.S. The following statistics reflect the average use of credit by today’s consumers.
Number of Credit Obligations
On average, today’s consumer has a total of 13 credit obligations on record at a credit bureau. These include credit cards (such as department store charge cards, gas cards or bankcards) and installment loans (auto loans, mortgage loans, student loans, etc.). Not included are savings and checking accounts (typically not reported to a credit bureau). Of these 13 credit obligations, nine are likely to be credit cards and four are likely to be installment loans.
Past Payment Performance
On average, today’s consumers are paying their bills on time. Less than half of all consumers have ever been reported as 30 or more days late on a payment. Only three out of 10 have ever been 60 or more days overdue on any credit obligation. 77 percent of all consumers have never had a loan or account that was 90+ days overdue, and less than 20 percent have ever had a loan or account closed by the lender due to default.
Credit Utilization
About 40 percent of credit card holders carry a balance of less than $1,000. About 15 percent are far less conservative in their use of credit cards and have total card balances in excess of $10,000. When Fair Isaac looks at the total of all credit obligations combined (except mortgage loans), 48% of consumers carry less than $5,000 of debt. This includes all credit cards, lines of credit, and loans-everything but mortgages. Nearly 37 percent carry more than $10,000 of non-mortgage-related debt as reported to the credit bureaus.
Total Available Credit
The typical consumer has access to approximately $19,000 on all credit cards combined. More than half of all people with credit cards are using less than 30 percent of their total credit card limit. Just over one in seven are using 80 percent or more of their credit card limit.
Length of Credit History
The average consumer’s oldest obligation is 14 years old, indicating that he or she has been managing credit for some time. In fact, Fair Isaac found that one out of four consumers had credit histories of 20 years or longer. Only one in 20 consumers had credit histories shorter than two years.
Credit Inquiries
When someone applies for a loan or a new credit card account — in short, any time one applies for credit and a lender requests a copy of the credit report — this request is noted as an “inquiry” in the applicant’s credit file. The average consumer has had only one inquiry on his or her accounts within the past year. Fewer than 6 percent % had four or more inquiries resulting from a search for new credit.
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