While nearly two-thirds of Americans now enjoy the perks of good credit with FICO scores above 700, the reality is that 40 million are locked out of favorable terms with subprime scores below 600—a sharp contrast that defines our financial landscape.
Key Takeaways
- As of Q2 2023, the average FICO Score in the United States was 715, representing a slight increase from previous quarters and indicating improving consumer credit health
- In 2022, 23% of consumers with FICO Scores had scores between 300-579 (poor credit), down from 25% in 2021, per FICO data analysis
- The median VantageScore 3.0 across all US consumers in 2023 was 689, with variations by state showing New York at the highest median of 710
- Total US credit card debt reached $1.08 trillion in Q3 2023, up 4.9% year-over-year
- Average credit card balance per household was $6,501 in 2023, per Experian data
- 47% of cardholders carry a balance month-to-month in 2023, averaging 17% APR interest
- US household mortgage debt outstanding was $12.25 trillion in Q3 2023
- Average mortgage balance per borrower reached $252,000 in 2023, up 5%
- 30-year fixed mortgage rates averaged 6.81% in 2023
- Total auto loan debt hit $1.61 trillion in Q3 2023, up 2.7% YoY
- Average new auto loan amount $39,500 in Q3 2023
- Auto loan delinquency rate 4.04% in Q2 2023, highest in 9 years
- Total student loan debt $1.60 trillion in Q3 2023, 43 million borrowers
- Average federal student loan debt $38,375 per borrower in 2023
- Student loan delinquency 7.42% post-pandemic in Q3 2023
American credit scores are rising overall, but access and terms vary widely by financial health.
Auto Loans
- Total auto loan debt hit $1.61 trillion in Q3 2023, up 2.7% YoY
- Average new auto loan amount $39,500 in Q3 2023
- Auto loan delinquency rate 4.04% in Q2 2023, highest in 9 years
- Average used auto loan $26,141 in 2023, APR 11.02%
- New auto loan terms averaged 69.6 months in Q2 2023
- Subprime auto loans (<620 FICO) 10% of originations, 20% delinquency
- Average APR new auto 7.18%, used 11.45% in Q3 2023
- 89% of new cars financed in 2023
- Auto loan balances per borrower $21,702 average in 2023
- Refinance share 15% of auto loans in 2023
- Gen Z auto debt $12,500 average, highest growth
- Lease originations 20% of new vehicles in 2023
- Auto loan approvals 75% for FICO 661-780, 40% subprime in 2023
- EV auto loans average $54,000, 8.2% APR in 2023
- Serious delinquency 1.7% for autos in Q3 2023
- Average down payment new car 11.5% ($4,500) in 2023
- Buy-here-pay-here loans 35% subprime, $15k average in 2023
- Auto debt growth 12% since 2020
- Women auto borrowers average FICO 710 vs. men 705 in 2023
- 48-month auto loans APR 9.2%, 72-month 8.8% in 2023
- Repossessions up 20% YoY to 1,250 weekly in Q3 2023
- Average auto LTV 130% for used cars in 2023
- Credit union auto rates 1% lower than banks in 2023
Auto Loans Interpretation
The auto loan market is driving Americans to a precarious financial cliff, with record-breaking debt, soaring delinquencies, and repossessions accelerating as borrowers struggle under the weight of loans that often exceed the value of the rapidly depreciating cars they finance.
Credit Cards
- Total US credit card debt reached $1.08 trillion in Q3 2023, up 4.9% year-over-year
- Average credit card balance per household was $6,501 in 2023, per Experian data
- 47% of cardholders carry a balance month-to-month in 2023, averaging 17% APR interest
- Average credit limit on new cards issued in 2023 was $5,863, up 11% from 2022
- Credit card delinquency rate hit 3.2% in Q2 2023, highest since 2012
- Gen Z credit card users average 3.9 cards each in 2023, with $2,000 average debt
- Rewards cards held 52% market share in 2023, driving 15% higher spending
- Average APR for credit cards was 20.65% in Q4 2023, per Fed data
- 44 million Americans opened new credit cards in 2023
- Credit card fraud losses totaled $10.7 billion in 2023, up 18%
- Average number of credit cards per US adult is 3.84 in 2023
- Subprime cardholders (<660 FICO) pay 25% APR on average vs. 14% for superprime
- Contactless payments on cards grew to 50% of transactions in 2023
- Millennial card debt averages $5,400, highest among generations in 2023
- 27% of cardholders maxed out limits in 2023, risking score drops
- Store cards have 28.8% average APR, highest category in 2023
- Credit card spending surged 7.5% YoY to $3.5 trillion in 2023
- 61% of Americans live paycheck-to-paycheck, relying on cards, 2023 survey
- Average rewards rate on cards is 1.5% cash back in 2023
- Buy Now Pay Later (BNPL) users grew to 90 million in 2023, overlapping with 40% card users
- Credit card issuers approved 65% of applications in 2023, down from 70%
- Late fees averaged $41 per incident in 2023, collected $14 billion total
- Women hold 1.5 fewer cards on average than men in 2023
- Travel rewards redemptions hit $50 billion value in 2023
- Zero-interest promo periods average 15 months on balance transfers in 2023
- 36% of card debt is revolving vs. promo balances in 2023
- Average household with cards has $8,121 debt in 2023
- Student credit card debt averages $2,200 per borrower in 2023
Credit Cards Interpretation
Despite card issuers dangling increasingly higher limits and alluring rewards, Americans are collectively drowning in over a trillion dollars of high-interest debt, with nearly half carrying a balance month-to-month, proving that the house always wins when you're borrowing at 21% to chase 1.5% cash back.
Credit Scores
- As of Q2 2023, the average FICO Score in the United States was 715, representing a slight increase from previous quarters and indicating improving consumer credit health
- In 2022, 23% of consumers with FICO Scores had scores between 300-579 (poor credit), down from 25% in 2021, per FICO data analysis
- The median VantageScore 3.0 across all US consumers in 2023 was 689, with variations by state showing New York at the highest median of 710
- Approximately 40 million Americans have subprime credit scores below 600 as of 2023, limiting their access to favorable credit terms
- FICO Scores above 800, considered exceptional, were held by 20% of US consumers in Q3 2023, up 2% year-over-year
- The average age of accounts on credit reports for consumers with good credit (670-739) is 12 years, compared to 7 years for those with poor credit, per 2023 Experian study
- In 2023, 67% of US consumers had access to at least one credit card, correlating strongly with FICO Scores above 700
- Utilization rates below 30% contribute to 30% higher FICO Scores on average, according to FICO's scoring model analysis in 2023
- States like Vermont and Minnesota had average FICO Scores over 730 in 2023, while Nevada lagged at 675, per FICO state rankings
- Delinquent accounts appear on 18% of credit reports as of 2023, severely impacting scores by an average of 100 points
- Generational breakdown shows Baby Boomers with average FICO 747, Millennials at 702 in 2023
- Hard inquiries reduce FICO Scores by 5-10 points on average and stay on reports for 2 years, per 2023 FICO research
- 90% of top lenders use FICO Score 8 or 9 for underwriting in 2023
- Average FICO Score for new credit card approvals in 2023 was 722
- Credit scores recover an average of 40 points within 3 months after paying down debt, per Experian 2023 data
- Women in the US have an average FICO Score of 716 vs. 718 for men in Q3 2023, a narrowing gap
- Only 21% of subprime consumers (FICO <600) obtained new credit in 2023, vs. 45% of prime consumers
- FICO Score distribution: 28% very good (740-799), 21% exceptional (800+), 24% good (670-739) in 2023
- Average number of open credit accounts for FICO 800+ is 11.5, vs. 5.2 for poor scores, per 2023 study
- Bankruptcy on credit report lowers FICO by 240 points on average and lasts 10 years
- In 2023, 15% of consumers disputed errors on their credit reports, boosting scores by 20 points on average
- Average FICO Score by income: $100k+ households at 750, under $25k at 650 in 2023
- VantageScore 4.0, launched 2017, is used by 40% of lenders in 2023 for trended data
- Missed payments drop FICO by 90-110 points, with recovery taking 7 years for full impact fade
- 62% of US adults have FICO above 700 in 2023, enabling better rates
- Immigrants have average FICO 30 points lower than native-born due to thinner files, 2023 data
- Average recovery time from score drop due to high utilization is 3-6 months, per FICO
- FICO Scores factor payment history at 35%, amounts owed 30%, length 15%, new credit 10%, mix 10%
- In 2023, average FICO for mortgage approvals was 754
- 25% of thin-file consumers (under 1 year history) have FICO under 600
Credit Scores Interpretation
In a credit report snapshot of America, we're collectively polishing our financial halos, yet with 40 million still stuck in subprime purgatory, the path to creditworthiness reveals a sharp divide between those building history and those repairing it, with geography, age, and a single missed payment writing sobering footnotes to the national average of 715.
Mortgages
- US household mortgage debt outstanding was $12.25 trillion in Q3 2023
- Average mortgage balance per borrower reached $252,000 in 2023, up 5%
- 30-year fixed mortgage rates averaged 6.81% in 2023
- Homeownership rate for those with FICO 760+ is 82%, vs. 55% for subprime in 2023
- Mortgage delinquency rate was 3.88% in Q3 2023, lowest since 2005
- FHA loans comprised 13% of originations in 2023, average balance $293,000
- Jumbo mortgages (> $766,550) averaged 7.1% rates in 2023
- 76% of mortgages in 2023 were purchase loans, 24% refi
- Average LTV ratio for new mortgages was 80% in 2023
- Mortgage applications fell 20% YoY in 2023 due to rates
- HELOC balances totaled $320 billion in Q3 2023, up 10%
- 15-year mortgage rates averaged 6.21% in 2023
- VA loans had 2.99% average rate in 2023, lowest category
- Foreclosure starts at 0.33% in 2023, per CoreLogic
- Average mortgage payment rose to $2,225 monthly in 2023, up 10%
- 91% of mortgages are fixed-rate in 2023 portfolios
- Debt-to-income ratio for approvals averaged 36% in 2023
- Reverse mortgages outstanding grew to $128 billion in 2023
- Millennial homebuyers 40% of purchases in 2023, average mortgage $309k
- Mortgage credit availability index at 20.5 in Dec 2023, tightest since 2014
- ARM share of originations 7.5% in 2023, up from 2%
- Underwater mortgages at 1.2% of total in Q3 2023
- Average points and fees on mortgages 1.2% of loan in 2023
- GSE-backed mortgages 60% of market in 2023
- Serious delinquency (90+ days) 0.85% for mortgages in 2023
Mortgages Interpretation
The American dream of homeownership now costs a small fortune, but at least borrowers are remarkably punctual with their payments—even if their wallets are audibly weeping.
Student Loans
- Total student loan debt $1.60 trillion in Q3 2023, 43 million borrowers
- Average federal student loan debt $38,375 per borrower in 2023
- Student loan delinquency 7.42% post-pandemic in Q3 2023
- Private student loans average $38,000 balance, 12.5% rates in 2023
- 45% of borrowers owe under $10k, but top 10% owe 50% of debt in 2023
- Parent PLUS loans total $112 billion, average $28k in 2023
- Default rate on federal loans 11.1% over 3 years for 2019 cohort
- Average bachelor's degree debt $37,853 in 2023
- Forgiveness programs relieved $160 billion for 4.4 million in 2023
- Gen Z student debt $20,200 average, Millennials $33,000 in 2023
- For-profit college borrowers owe $110 billion, 15% default rate
- Income-driven repayment covers 40% of federal portfolio in 2023
- Average grad school debt $66,000 in 2023
- 14% of debt held by those earning <$30k, struggling most
- Refinance volume $15 billion in 2023, lowering rates 3%
- Black borrowers hold 17% of debt but 33% repayment struggles
- 90-day delinquency 0.9% federal, 2.5% private in Q3 2023
- Average monthly payment $393 in 2023
- Law school debt averages $145,000 in 2023
- 56% of bachelor's holders borrowed, vs. 70% community college
- Deferment/forbearance 20% of borrowers in 2023
- Medical school debt $200,000+ average for 2023 grads
- Student debt to GDP 7.5% in 2023
- Average interest rate federal undergrad 5.5% in 2023-24
Student Loans Interpretation
America is treating its student loan crisis like a group project where 10% of the members do 50% of the work, everyone's grade is on the line, and the instructions are written in a language only accountants understand.
Sources & References
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