What is the average credit line for a 25 year old?
In 2022, Generation Z (ages 18-25) averaged a total credit limit of $11,290 across all credit accounts, far lowest among the five generations presented. Baby Boomers top the list with a $40,318 total credit limit on average.
Age Bracket | 2022 |
---|---|
18–25 | 679 (Good) |
26–41 | 687 (Good) |
42–57 | 706 (Good) |
58–76 | 742 (Very Good) |
It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.
Yes, a $2,000 credit limit is ok, if you take into consideration that the median credit line is $5,394, according to TransUnion data from 2021.
Generation | Average Credit Card Limit | Average Credit Score |
---|---|---|
Generation Z (age 18-25) | $11,290 | 679 |
Millennials (age 26-41) | $24,669 | 687 |
Generation X (age 42-57) | $35,994 | 706 |
Baby Boomers (ages 58-76) | $40,318 | 742 |
Generation | Average Overall Credit Limit Per Person | Average FICO Score |
---|---|---|
Generation Z (18-22) | $8,062 | 667 |
Millennials (23-38) | $20,647 | 668 |
Generation X (39-54) | $33,357 | 688 |
Baby Boomers (55-73) | $39,919 | 731 |
According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.
While there's no such thing as the perfect “age of credit,” a FICO study reveals that for people with 800+ FICO Scores, their average age of credit accounts was 128 months (a little over 10.5 years). Yet that doesn't mean that it will take you ten and a half years to earn good credit.
While age is not a factor in calculating your credit score, length of credit history is. The longer you have a line of credit open, the better it is for your credit score (just as long as you made on-time payments).
However, multiple accounts may be difficult to track, resulting in missed payments that lower your credit score. You must decide what you can manage and what will make you appear most desirable. Having too many cards with a zero balance will not improve your credit score. In fact, it can actually hurt it.
Is 7 credit cards too many?
So, while there is no absolute number that is considered too many, it's best to only apply for and carry the cards that you need and can justify using based on your credit score, ability to pay balances, and rewards aspirations.
Having too many credit cards to comfortably manage may result in missed payments and drag your credit scores down. How many credit cards you have will impact your average credit age and utilization, factors that also affect your credit scores.
On our list, the Ramp Corporate Card and the Chase Ink Business Premier Preferred Credit Card offer the best opportunity to access a $100,000 credit limit. Ramp determines your spending limit based on factors like your cash-on-hands and monthly expenses, while Chase uses creditworthiness to calculate your credit limit.
VantageScore 3.0 credit score range | Average credit card limit |
---|---|
300–640 | $3,481.02 |
640–700 | $4,735.10 |
700–750 | $5,968.01 |
750+ | $8,954.33 |
A high-limit credit card typically comes with a credit line between $5,000 to $10,000 (and some even go beyond $10,000). You're more likely to have a higher credit limit if you have good or excellent credit.
A 740 credit score is Very Good, but it can be even better. If you can elevate your score into the Exceptional range (800-850), you could become eligible for the very best lending terms, including the lowest interest rates and fees, and the most enticing credit-card rewards programs.
A breakdown of younger generation credit scores
Millennials average a credit score of 690, and Gen Zers come in at 680. For reference, the qualifying credit score for most conventional home loans is 620, according to Rocket Mortgage.
FICO says scores of 580 to 669 are considered "fair" and 740 to 799 are considered "very good." Anything at 800 or above is considered "exceptional." NerdWallet's credit score bands, used for general guidance, are pictured above.
Age Group | Good Credit Limit |
---|---|
Gen Z (18-24) | $9,000 |
Millennials (24-39) | $22,000 |
Gen X (40-55) | $34,000 |
Baby Boomers (56-74) | $39,000 |
Whether or not you can purchase a vehicle with a credit card will depend on the dealer and the policies they have in place for certain transactions. Many dealers refuse credit card transactions or limit the dollar amount of such transactions due to the hefty transaction fees that often accompany them.
Is a $25,000 credit limit good?
Yes, $25,000 is a high credit card limit.
While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
What is a bad FICO credit score? A bad FICO credit score may fall in the fair or poor FICO range. FICO considers a credit score to be fair if it's between 580 and 669, and poor if it's below 580. According to FICO, borrowers with a FICO score in a lower range tend to be viewed as a credit risk.
You can borrow over $100,000 with an 800 credit score if you get a mortgage or a home equity loan. Keep in mind, the exact amount of money you will get depends on other factors in addition to your credit score, such as your income, your employment status and even the lender.
Your credit score is a major factor in whether you'll be approved for a car loan. Some lenders use specialized credit scores, such as a FICO Auto Score. In general, you'll need at least prime credit, meaning a credit score of 661 or up, to get a loan at a good interest rate.
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