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US Loans, Debt and Credit Score Statistics – Full Report 2020

A comprehensive report on the United States household debt, loans and credit score.
Justinas Baltrusaitis
Last Updated: April 27, 2020
US flag and 5 USD bill is in the image.
US flag and 5 USD bill is in the image.

This page covers the US household debt, credit and loans data. The data provided is meant to serve the reader with the most accurate, latest and market-reflective loans and credit statistics available.

How big is US Household Debt?

The United States household debt surpassed the $14 trillion mark for the first during the fourth quarter of 2019 to stand at $14.15 trillion. The debt which entails mortgage, revolving credit, auto loan, credit card, student loans and other forms of loans have been rising steadily and continued an upward trend for the last five years.

How big is the US Household Debt per capita?

By Q4 2019, the US household debt per capita hit the all-time of $42,935.13 after a steady increase from Q3 2013. Prior to the 2019 rise, the highest household debt per capita was in in the wake of the recession in Q3 of 2008 when the figure stood at $38,474.73.

What share of loans held by banks in the US are non-performing?

A non-performing loan or delinquent loan is a loan in which the borrower is in default because they have not made the scheduled payments for a specified period. The specified repayment period varies based on the industry and the type of loan. By the end of 2019, approximately 99% of all loan recipients in the United States were repaying the borrowed money on time.

What is the average American’s credit score rating?

A credit score refers to a numerical expression based on a level analysis of a person’s credit files, to have the creditworthiness of an individual. The score is primarily based on a credit report from information primarily retrieved from credit bureaus. In the United States, the most commonly used score is from the FICO Score which ranges between 300 and 850. This is the most commonly used credit scoring model by lenders for evaluating a borrower’s creditworthiness. According to the score:

  • Individuals with a FICO Score of 800 or above are considered to have “exceptional” credit.
  • Credit scores ranging from 740-799 fall into the “very good” category.
  • Scores of between 670-739 are considered “good” scores.
  • A “fair” score falls between 580-669.
  • Any score that is lower than 579 is considered a “poor” score.

Yearly average US FICO score 

Americans have been scoring differently over the years based on various factors like payment history, credit utilization, credit history length, credit mix, and new credit. In the last decade, the US average credit score has been on a rise.

The high credit score average might be because most Americans are now monitoring their creditworthiness. The increase correlates with the rising US population. Generally, most Americans have implemented changes in their credit behavior.

What is an average FICO score by state? 

In the US, the average credit scores vary based on the state. In 2019, the midwest states had the highest credit scores with Minnesota topping with an average FICO score of 733.

U.S. Consumer Credit snapshot chart

In the United States, consumers continue to pile debts to cater for various needs. The increase in consumer credit correlates with rising household debt in the country.

Impact of bad credit score on buying homes based on ethnicity

Credit scores impact almost all aspects of American lives. With a good credit score, one gets access to mortgages, auto loans among other forms of lending. With millennials striving to become homeowners, their credit rating has significantly played a role. Here’s the share of Millennial renters who view bad credit as the largest obstacle to buying a home in the US, by ethnicity.

How to improve your credit score?

In improving your credit score, payment history is what matters the most. Consumers can pay their bills on time and catch up on past due accounts and take care of debt collections as the first step towards getting a good rating.

Furthermore, reducing the amount of credit you are using plays a role in improving your score. For example, maintaining extremely low credit card balances will positively impact your score.

Apply for new credit only as needed. The fewer cards you have, the less debt you will have. In return, you are not faced with repayment challenges.

Monitor your credit score using free credit scoring services. It is advisable to stay up to to date on changes to your score as you will have an opportunity to have a deeper understanding of the factors influencing your credit score.

What is the value of loans of all commercial banks in the United States?

The value of loans all by commercial banks in the US refers to the value of credit of all commercial banks. Loans issued by all U.S. commercial banks in March 2020 amounted to approximately $14.3 trillion

What are Avg credit card rates (%) in the US?  

By 2019, the United States was served by credit cards from ten major providers. All providers have varying rates. Interest rate cuts may be experienced in 2020 as a way of cushioning Americans due to the economic impact of the Coronavirus pandemic. Interest rate cuts will be good news for consumers, who are collectively carrying a lot of credit card debt. In 2019 the national average annual percentage rate was 17.57 percent.

The overviewed data is subject to being updated regularly once new information is available from the authorized sources.

 

Users should remember that all trading carries risks and users should only invest in regulated firms. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Justinas Baltrusaitis

Justin is an editor, writer, and a downhill fan. He spent many years writing about finances, blockchain, and crypto-related news. He strives to serve the untold stories for the readers.