Christy Bieber

Christy Bieber is a full-time personal finance and legal writer with more than a decade of experience writing for the web. She has a JD from UCLA as well as a degree in English, Media and Communications with a Certificate in Business Management from the University of Rochester. In addition to writing for Ascent and The Motley Fool, her work has also been featured regularly on MSN Money, CNBC, USA Today, and many other major outlets. She also ghost writes textbooks, serve as a subject matter expert for online course design, and is a former college instructor.

Recent Posts

MOVED Which Generation Has the Best Credit Scores?

Posted by Christy Bieber on Dec 28, 2019 10:00:00 AM

Most Americans have good credit, but some generations do better than others.

According to recent research from The Ascent on average credit scores, most Americans have fair or good credit. In fact, the average VantageScore in America was 694 in the first quarter of 2018 -- which is a score most lenders would view as reasonably good.

But while credit scores have been trending upward and the average American is doing OK when it comes to their credit history, some generations of Americans are definitely doing better than others. 

An older woman and a younger woman looking at a laptop screen together.

So which generation is winning in the credit score game? 

Which generation has the highest credit scores?

According to The Ascent's research, the silent generation has the highest average credit score of any generation. Members of this older demographic group had an average VantageScore of 729 in 2017. This was a full 26 points higher than the generation with the next highest score. 

As the table below shows, scores went down from there, with baby boomers beating Gen Xers, who had a higher average score than members of Gen Y. But Gen Y members beat out the youngest group, members of Gen Z.  


Average 2017 VantageScore

Gen Z


Gen Y


Gen X


Baby boomers


Silent generation


Data source: Experian.

Why does the silent generation have better credit than other generations?

It should come as no surprise that older Americans generally have better scores than younger ones, nor that scores improve with age. 

Older Americans have had more time to pay down debt, which helps to keep their credit utilization ratios low. They've also had a longer period of time to develop a strong credit history, simply by using their credit cards for longer, and to take out different kinds of loans. All of this affects credit scores, which are calculated based on payment history; amount of available credit used; age of credit; mix of different kinds of credit; and amount of new credit applied for.

As people get older, they also often become more financially stable, which makes them more able to be financially responsible. Silent generation members, for example, are very likely to be retired and collecting Social Security and pension or investment income. They're not dependent on a paycheck to pay their bills, so they may be insulated from, say, unemployment or underemployment that could lead to a missed payment or a maxed-out credit card.

Younger generations have also faced unique financial burdens that many of their older counterparts didn't have to deal with. These include high student loan balances and a changing economy that makes it far less likely they'll get a stable long-term job with ample employment benefits. All of these factors can make it harder to engage in the types of borrowing behavior that can lead to great credit. 

So as you can see, there are many explanations for the increase in average credit scores as people get older, and why older generations have higher average scores than younger ones. 

You can improve your credit score

Whether your credit score is on par with others in your generation -- or is a little better or a little worse -- there's likely room for improvement, unless of course you have a perfect score. Practicing good borrowing behavior, including keeping credit balances low and making payments on time, can help you to ensure your credit score is one you can be proud of.  

Topics: Credit Cards, 0% APR & Low Interest

MOVED Are You "Credit Invisible"? Here's How to Build Your Credit Score

Posted by Christy Bieber on Dec 24, 2019 6:00:00 AM

Around 11% of U.S. adults have no credit score. If you're one of them, here's what you need to do. 

Having a good credit score is really important -- and recent research from The Ascent shows the average American has a pretty good one. But while the average FICO® Score hit 704 in 2018, there are still millions of Americans who don't have the credit they need to be able to borrow. 

In fact, a surprising number of Americans are considered "credit invisible," which means they have no record with the major credit reporting agencies and no credit score can be generated.

A man sitting on a bench looking out at a wintry lake and fading into physical transparency.

Having no credit record can make it difficult to rent an apartment, get a credit card, or borrow money for big purchases. And it can lead to the use of expensive non-traditional forms of credit such as payday loans.

If you're a credit invisible, you don't have to stay that way forever. There are some simple things you can do to help you build your score. 

How many Americans are credit invisible?

The Ascent's research found that as many as 26 million consumers in the U.S. have no record with credit reporting agencies and so are considered credit invisibles. This is about 11% of the adult population of the United States.  

The same research showed that a further 19 million consumers -- about 8.3% of all adults -- in the U.S. have a record with the major credit reporting agencies, but their credit record is too thin to receive a credit score.

How can you build your score if you're one of them?

Unfortunately, being credit invisible can be a big problem as many companies check your credit -- not just lenders. Auto insurers, landlords, cell phone companies, and utility companies all review your credit history when deciding on the terms of doing business with you. And some employers do a credit check too.

If you have no credit history, these companies and individuals don't have an easy way to tell if you're trustworthy and likely to stick to your financial commitments. They may be less likely to rent you an apartment or may charge you a higher deposit to get connected to water and electricity. 

The good news is, developing a credit record isn't hard. You just need to start by building a payment history. 

The easiest way to build a payment history is to get a credit card. And while you may have difficulty getting a traditional card, there are plenty of secured cards out there you can start with. A secured card requires you to put down a deposit equal to your credit limit. You can then make small charges on your card and pay them off in full each month. Your credit transactions will be reported to the credit reporting agencies and you'll develop a credit record that -- over time -- enables the credit reporting agencies to give you a score so you'll be invisible no more. 

Store cards may also be easier to qualify for and can also help you to develop that all-important credit history. Try applying for one at your favorite store, making periodic small purchases with it, and paying them off right away. 

You could also ask someone in your life who has good credit to cosign for a credit card or a loan for you. This would enable you to get approved and get your credit history started. Asking a loved one to add you as an authorized user to one of their credit cards would work too. This would enable the account to be listed on your credit history, even though you wouldn't be responsible for paying the credit card bill.

Getting credit will open up your credit report. Then, you need to make sure you exhibit responsible borrowing behavior by keeping your credit balance low (try to use less than 30% of your available credit) and always paying your bills on time. 

You don't have to be credit invisible anymore

If you don't want to be credit invisible any longer, the tips above can help make sure you build a positive credit history so lenders will be eager and willing to do business with you. Get started ASAP because it takes time to build credit. Now is the perfect time to stop living in the shadows and make sure you're seen. 

Topics: Credit Cards, 0% APR & Low Interest