The current average credit score in the USA is 687. In the past 5 years your average annual credit scores were 680, 665, 688, 694 and 710. Is you score average over the past 5 years? Round to the nearest point.
The Correct Answer and Explanation is:
To determine if your score is average over the past 5 years, calculate the mean of your credit scores:
Your credit scores over the past 5 years:
680, 665, 688, 694, and 710.
Step 1: Add the scores together
680 + 665 + 688 + 694 + 710 = 3437
Step 2: Divide by the number of years
3437 ÷ 5 = 687.4
Step 3: Round to the nearest point
687.4 rounds to 687
Final Answer: 687
Explanation:
To check whether your credit score over the past 5 years is considered average compared to the national average, use the arithmetic mean. The arithmetic mean is found by summing all the values and dividing by the total number of values.
Your scores were slightly varied over the years. Starting at 680 and dipping to 665, they then rose gradually to reach 710. This trend shows improvement, which is a positive sign for your financial health.
After calculating the average score of 687.4, rounding gives 687. This is identical to the current national average credit score in the USA, which is also 687. This means your 5-year average is exactly in line with the national trend.
Being at the national average suggests that your credit behavior is typical of the general population. It implies responsible financial habits such as timely bill payments, moderate credit utilization, and limited negative credit events.
Maintaining or improving this trend will likely place you above the average in the future. Factors that influence credit scores include payment history, amounts owed, length of credit history, new credit, and credit mix. Continued attention to these areas can help boost your score.
In conclusion, your 5-year average credit score is 687, which matches the national average, indicating your score is average.
