Average credit scores for young adults

Young adults 18–24 · Explainer · Updated October 1, 2026 · LearnLife Editorial

What is a credit score for young adults?

A credit score is a three-digit number that shows how reliable you are at borrowing and repaying money. For young adults, this score usually starts when you open your first credit account, like a credit card, student loan, or car loan. The score is based on your credit history, which includes how you manage payments, the amount of debt you owe, and how long you’ve had credit. Scores typically range from 300 to 850, with higher numbers meaning you are seen as less risky by lenders.

Most young adults have a shorter credit history, so their credit score may be lower or not yet established. For example, if you just turned 18 and applied for your first credit card, you likely have no credit history, so your score might be low or nonexistent at first. As you use credit responsibly, such as paying bills on time and keeping balances low, your credit score will improve.

How does a credit score work with a hypothetical example?

Imagine a young adult named Jamie who just opened a credit card with a $500 limit. In the first month, Jamie spends $100 on the card and pays off the full amount before the due date. This timely payment and low balance start building a positive credit history, gradually increasing Jamie’s credit score. This shows lenders Jamie uses credit responsibly.

Now, consider if Jamie charged the full $500 and only made minimum payments late. This behavior would harm the credit score. Credit scores are influenced by five main factors:

1. Payment history (35%) – paying bills on time
2. Amounts owed (30%) – how much credit you use versus your limit
3. Length of credit history (15%) – how long accounts have been open
4. New credit (10%) – recent credit applications
5. Types of credit used (10%) – mix of credit cards, loans, etc.

By paying on time and keeping balances low, Jamie’s credit score improves steadily.

Why does the average credit score matter for young adults?

The average credit score matters because it affects your ability to get loans, credit cards, apartments, and sometimes even jobs. For young adults, having a good credit score means easier access to financial products and better interest rates, which lowers your overall cost of borrowing. For example, if you apply for a car loan, a higher credit score can help you qualify for a loan with a lower interest rate, saving you money on your monthly payments.

If your credit score is low or you have no credit history, lenders may deny your applications or require a higher interest rate. This makes borrowing more expensive and limits your financial options. Since young adults are often making big financial decisions for the first time, understanding your credit score helps you plan and make smart choices.

What credit score range is good for young adults?

A "good" credit score generally starts around 670, but this can differ depending on the lender. Scores between 670 and 739 are usually seen as good, while 740 and above are very good to excellent. Scores between 580 and 669 are considered fair, and anything below 580 is poor.

For example, a young adult with a credit score of 700 may get approved for more credit cards with better rewards and interest rates than someone with a score of 620. If your score falls in the fair or poor ranges, focus on building credit by using credit responsibly and paying bills on time.

What credit-related terms do young adults often confuse?

Here are some common terms to clarify:

• Credit report: This is a detailed record of your borrowing and repayment history. Your credit score is calculated based on the information in your credit report.
• Credit utilization: This is the percentage of your available credit you are currently using. For example, if your credit card limit is $1,000 and you owe $300, your utilization is 30%. Lower utilization (ideally below 30%) helps improve your credit score.
• Hard inquiry: This happens when a lender checks your credit report because you applied for credit. It can slightly lower your score temporarily.
• Soft inquiry: This is when you check your own credit or a company checks it for promotional reasons. It does not affect your credit score.
• Payment history: This tracks whether you have paid your bills on time. It is the most important factor affecting your credit score.

Understanding these terms helps you make better credit decisions and avoid mistakes that could hurt your score.

What steps can young adults take to build or improve their credit score?

Here are practical steps young adults can follow to build strong credit:

1. Open a credit account: Start with a secured credit card or a student credit card if you have no credit history.
2. Pay bills on time: Always pay at least the minimum amount due by the deadline. Set reminders or automatic payments to avoid late payments.
3. Keep credit utilization low: Try to use less than 30% of your total credit limit. For example, if your card limit is $500, keep your balance below $150 when possible.
4. Avoid applying for too much credit at once: Each credit application triggers a hard inquiry that can lower your score temporarily.
5. Check your credit report regularly: Use your free annual credit report to check for errors or signs of fraud. Dispute any mistakes you find immediately.
6. Consider becoming an authorized user: If a family member has a good credit history, being an authorized user on their card can help you build credit.

By following these steps consistently, young adults can build a credit score that opens doors to better financial opportunities.

What should young adults do next to understand their credit better?

Start by checking your credit score and credit reports from the three main credit bureaus. You can get a free credit report once a year from AnnualCreditReport.com. Reviewing your credit report helps you spot inaccuracies or unexpected accounts.

Next, explore resources designed for beginners, such as Credit score tips for young adults and How young people get a credit score, to learn more about how credit works and how to manage it.

If your score is low or you have no credit history, begin building credit gradually by using a secured credit card or taking out a small credit-builder loan. Monitor your progress by checking your score regularly and adjusting your habits.

Taking these steps early will help you build a solid credit foundation that supports your financial goals, like renting an apartment, buying a car, or applying for student loans.

Frequently asked questions

How long does it take for young adults to build a credit score?

It usually takes three to six months of credit activity, such as using a credit card or loan and making timely payments, to establish a credit score. The more responsible the activity, the more quickly your score improves.

Can I have a credit score without credit cards or loans?

Typically, no. A credit score requires a credit history from using credit products like credit cards or loans. Without these, you may have no credit score or a very thin credit file, making it harder to qualify for credit.

What credit score do I need to get a credit card as a young adult?

Most credit cards require a score of around 670 or higher for easier approval and better terms. Some beginner cards accept lower scores but might have higher fees or limited features.

How often should young adults check their credit score?

Checking your credit score monthly or quarterly helps you track progress and catch errors early. Checking your own score is a soft inquiry and does not hurt your credit.

Will closing a credit card help my credit score?

Closing a credit card can reduce your total available credit, increasing your credit utilization and potentially lowering your score. It’s usually better to keep older accounts open and use them responsibly.