The average credit score in the US just hit an all-time high of 718, according to an Oct. 30 report from FICO, the data analytics company that computes the three-digit rating. On the FICO scale, which ranges from 300 to 850, a score of 718 falls under the "good" credit category.
This news may come as a surprise, given high prices, rising interest rates and U.S. credit card debt topping $1 trillion in August. But FICO said in the report that a strong job market, slowing inflation and the removal of medical debt from credit reports have helped boost scores.
Here's how to find out what your FICO Score is and how to make the most of it.
How to check your FICO Score for free
Many banks and credit card companies— including American Express®, Bank of America, Citibank and Discover — offer members free access to their FICO Scores.
You can also check your score using online resources like Experian Boost™, which links to your bank accounts and tracks on-time payments for recurring charges like phone bills, streaming subscriptions and rent.
Experian Boost™
On Experian's secure site
Cost
Free
Average credit score increase
13 points, though results vary
Credit report affected
Experian®
Credit scoring model used
FICO® Score
Results will vary. See website for details.
How to sign up for Experian Boost:
- Connect the bank account(s) you use to pay your bills
- Choose and verify the positive payment data you want added to your Experian credit file
- Receive an updatedFICO® Score
Learn more about eligible payments and how Experian Boost works.
How to make the most of your credit score
There are plenty of advantages to having good credit. For one, it makes it easier and cheaper to borrow money. The better your credit score, the more likely it is you'll qualify for lower interest rates and fees on a new line of credit, whether it's a personal or business loan, car loan or mortgage.
Top personal loan
LightStream offers low-interest loans with flexible terms for people with good credit. It's known forproviding loans in nearly every categoryexcept higher education and small business.according to the company's website, you can take out a LightStream personal loan to buy a car, remodel the bathroom, consolidate debt or cover medical expenses.
LightStream Personal Loans
Annual Percentage Rate (APR)
7.49% - 25.49%* APR with AutoPay
Loan purpose
Debt consolidation, home improvement, auto financing, medical expenses, and others
Loan amounts
$5,000 to $100,000
Terms
24 to 144 months* dependent on loan purpose
Credit needed
Good
Origination fee
None
Early payoff penalty
None
Late fee
None
Terms apply. *AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Excellent credit required for lowest rate. Rates vary by loan purpose.
Top small business loan for multiple types
With Biz2Credit, you can take out a variety of small business loans, including SBA loans, business lines of credit, equipment financing, merchant cash advances, unsecured business loans and business acquisition loans.
Biz2Credit
Types of loans
SBA loan, business line of credit, equipment financing, merchant cash advance, unsecured business loans, business acquisition loans
Better Business Bureau (BBB) rating
A-
Loan amounts
Up to $6 million, depending on the type of loan
Terms
Up to 25 years, depending on the type of loan
Minimum credit score needed
580
Minimum requirements
Typical borrowers: in business at least 12 months and $10,000 in average monthly revenues
Terms apply.
Top auto loan
PenFedcan help you finance the purchase of a new or used car. The credit union offers affordable rates and flexible loan amounts and term lengths, and it doesn't charge a prepayment penalty. PenFed membership is open to anyone — and to keep it active you just need to open a PenFed savings/share account with a $5 deposit and maintain a $5 balance.
PenFed Auto Loans
Annual Percentage Rate (APR)
Starting at 5.94%
Loan purpose
New vehicles, used vehicles, refinancing
Loan amounts
Starting at $500
Terms
36 to 84 months
Credit needed
Not specified
Early payoff penalty
None
Late fee
20% of the overdue amount, up to $25
Terms apply.
Good credit can also help you refinance existing debt, especially if your score has improved since you first opened the account. Check out CNBC Select's top picks for refinancing lenders for mortgages or student loans.
If you're applying for a new credit card, a healthy FICO Score improves your chances of being approved for one with a good welcome bonus, great rewards or an intro 0% APR period.
The Capital One Venture Rewards Credit Card offers new members a generous welcome offer of 75,000 bonus miles if they spend $4,000 on purchases within three months of account opening (see rates and fees). This offer is worth at least $750 in travel rewards — or potentially more if the cardholder transfers their miles to one of Capital One's travel partners.
Capital One Venture Rewards Credit Card
Learn More
Rewards
5 Miles per dollar on hotel and rental cars booked through Capital One Travel, 2X miles per dollar on every other purchase
Welcome bonus
Earn 75,000 bonus miles once you spend $4,000 on purchases within 3 months from account opening
Annual fee
$95
Intro APR
N/A for purchases and balance transfers
Regular APR
19.99% - 29.99% variable
Balance transfer fee
$0at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you
Foreign transaction fee
None
Credit needed
Excellent/Good
See rates and fees, terms apply.
The Wells Fargo Reflect® Card charges zero interest on both purchases and qualifying balance transfers for 21 months from account opening (after, 18.24%, 24.74%, or 29.99% variable APR). We always recommend paying off your credit card balance in full each month, but if you need to carry a balance, it can be reassuring to know you have nearly two years before interest starts accruing.
Wells Fargo Reflect® Card
Rewards
None
Welcome bonus
None
Annual fee
$0
Intro APR
0% intro APR for 21 months from account opening on purchases and qualifying balance transfers.
Regular APR
18.24%, 24.74%, or 29.99% Variable APR on purchases and balance transfers
Balance transfer fee
5%, min: $5
Foreign transaction fee
3%
Credit needed
Excellent/Good
See rates and fees. Terms apply.
Your credit score can even affect how much you pay for insurance. Credit-based insurance scores are different from traditional FICO Scores, but they still look at your record to help auto and homeowners insurance providers determine whom to approve and what premiums to charge. In addition to driving history and age, for example, Nationwide looks at an applicant's payment record (including any delinquencies or late payments), types of credit and length of credit history when determining premiums.
"Studies show that using this score helps us better predict insurance losses," the company says on its website.
Nationwide Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you.
Terms apply.
Bottom line
With the average FICO Score in the U.S. at a robust 718, now is a great time to see where you stand and discover if you can use your score to better your financial future.
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AtCNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit monitoring article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit scores and credit products.While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
