A good credit score is critical when buying or renting a home as it directly impacts your ability to secure a mortgage or lease. Lenders and landlords use your credit score to assess your financial responsibility and ability to make timely payments. A higher credit score can lead to lower interest rates on a mortgage, saving you money over the life of the loan and can also increase your chances of being approved for a rental property.
Ultimately, a good credit score not only opens up more housing options, but it can also save you money in the long run.
Here’s the average credit score by generation as of March 2024. The higher the better!
Gen Z (18 to 27): 665
Millennials (28 to 43): 687
Gen X (44 to 59): 710
Baby Boomers (60 to 78): 746
Silent Generation (79 to 96): 750
Trying to improve your score? Here are some tips from trusted Senior Mortgage Consultant at U.S. Bank, Steven John Gagnon:
- Pay your credit card debts off on time and in full monthly. Payment history is the most influential factor in your credit score and accounts for 35% of your rating.
- Keep your credit utilization low. If you carry a balance, keep the balance under 30% of the high credit limit. A quick tip is to have the credit card company increase your credit limit.
- Be added as an authorized user on a family member’s long-time, well-paid account. This will help boost your score.
- Limit new credit debt, and do not close out older credit debt.
