What Age Group Has the Highest Percentage of Credit Scores 620 or Less?

One age group stands out with the highest percentage of credit scores 620 or less, and it’s probably not the one you think. According to aggregated data from sources like CliffsNotes, ClassAce, and CourseSidekick, the biggest spike doesn’t happen at the beginning of adulthood. It happens later.

That surprised me… until I thought about what really happens during that stage of life. Bills pile up. Mortgages, student loans, kids, credit cards: All of it hits at once. It’s a pressure cooker.

So let’s take a closer look at what age group has the highest percentage of credit scores 620 or less, and more importantly, what you can do if your score is stuck in the low 600s … or lower.

What Age Group Has the Highest Percentage of Credit Scores 620 or Less?

If you’re wondering what age group has the highest percentage of credit scores 620 or less, it’s not the very young. It’s people in their 30s. Adults between the ages of 30 and 39 are more likely than any other age group to have a credit score of 620 or lower. While it’s easy to assume that younger adults would struggle the most due to limited credit history, the data tells a different story. The trend toward a lower credit score happens in the decade when financial responsibilities start compounding fast.

Here’s why this decade is the most credit-challenging:

• Big life expenses: Mortgages, student loan payments, car loans, credit
  cards, and kids. These pile up fast.
• Risky borrowing patterns: Entry into higher-limit cards and large loans can
  lead to missed payments or high balances.
• Lingering credit damage: Mistakes from your 20s may still be dragging down
  your score, and recovery takes time.
• Not enough time to rebuild: Unlike older adults, those in their 30s haven’t
  had decades to recover from credit missteps.

By contrast, people under 30 may have limited credit history, which does lower their score, but it also translates to fewer chances for serious damage, and people over 40 are often in the process of rebuilding or have already done so.

In your 30s, you’re often juggling student loans, car payments, mortgages, childcare, and credit cards, all while trying to build a stable life. It’s a lot. And when money gets tight, it’s easy for payments to fall behind, causing credit scores to drop.

Be sure to read this related article: “How Can I Improve My Credit Score Quickly?”

What Does a Sub-620 Credit Score Mean?

If you fall into the age group with the highest percentage of credit scores 620 or less, here’s what that means for your day-to-day finances:

• Mortgage limitations: Conventional home loans often require a minimum score of 620.
• High interest rates: Lenders may approve a loan, but at punishing rates.
• Loan denials: You may not qualify at all, especially for auto or personal loans.
• Increased fees and deposits: You might be required to pay security deposits for apartments, cell phones, or utilities.

In short, a low credit score makes everything more expensive, or unavailable altogether. By contrast, here’s what you can expect if you increase your credit score to 720:

• Lower interest rates:You’ll save thousands over the life of a loan.
• Higher credit limits: Lenders trust you with more borrowing power.
• Top-tier credit cards: Get access to cards with serious perks.
• Free travel: Use points and miles to cover flights, hotels, and upgrades.
• Cash-back and rewards: Earn money or points on everyday spending.
• Stronger approval odds: Qualify more easily for mortgages, auto loans, and rentals.
• Better terms: Enjoy lower fees, better insurance rates, and fewer security deposits.

Tips for Improving a Credit Score of 620 or Less

If your credit score is below 620, the 7 Steps to a 720 Credit Score free credit-education program can help you start turning things around today. Here are three tips from the course:

Keep Your Balances Low

Your credit utilization ratio, how much credit you’re using compared to your total limit, is one of the biggest factors in your credit score. The goal is to keep this ratio under 30%, but if you want to see real movement in your score, aim for 10% or less. That doesn’t mean you need to pay off your cards entirely. Just avoid letting balances creep too high.

Dispute Credit Report Errors

Mistakes on your credit report can drag down your score for years if you don’t catch them. And they’re more common than most people realize: Industry experts estimate that between 34% and 70% of reports contain at least one error. Check your report regularly at annualcreditreport.com, which gives you free access from all three bureaus. If you find anything that looks wrong, like a payment marked late when you know it wasn’t, dispute it in writing and follow up until it’s resolved. The 7 Steps program includes templates and step-by-step instructions to walk you through it.

Mix Your Credit Types

Credit scoring models reward variety. That means having both revolving credit (like credit cards) and installment accounts (like car loans, student loans, or credit-builder loans). If you only have one type, your score may be stuck, even if you’re doing everything else right. You don’t need to take on unnecessary debt, but adding a small, manageable installment account can give your score a helpful nudge.

Watch & Learn: Building Credit Through a Credit Rebuilder Program

FAQ

What does a credit score of 620 or less mean for your finances?

A credit score of 620 or lower can be a major barrier to financial opportunity. This is the cutoff that many lenders use to determine whether you qualify for loans, credit cards, and even rental agreements.

At this level, you’re in what’s often called “subprime” territory. That means even if you get approved for credit, it’s likely to come with high interest rates, low credit limits, or extra fees. For example, someone with a 620 score might qualify for a car loan with an 11% interest rate, while someone with a 720 score could get the same loan for under 6%. Over the life of the loan, that difference could cost you thousands.

You might also face added expenses like utility deposits, higher insurance premiums, or prepaid cell phone plans. In short, a low score makes everything more expensive. A low score also has an impact on your peace of mind. Many people report feeling stuck or ashamed, even when the low score came from events outside their control. But you’re not powerless. Credit scores are fluid, and with a focused credit rebuilding plan, you can climb out of the low-600 range in just a year or two.

How fast can you raise your credit score after it drops below 620?

With the right strategy, you can reach a 700+ score in as little as 12 to 24 months.
Credit scores are not fixed. They respond quickly to new behavior. The most important thing is to stop the damage and start showing positive activity. That means on-time payments, low credit utilization, and adding the right mix of accounts. Even one new positive tradeline (like a credit card or installment account) can begin moving the needle.

People often wait for the negative items to “fall off” their credit report, assuming that time alone will fix the problem. But that’s a mistake. A bankruptcy, for example, might stay on your report for up to 10 years, but your score can recover long before that. In fact, many participants in the 7 Steps to a 720 Credit Score program see dramatic changes in their scores within the first six months, especially if they follow the credit-building steps exactly.

The key is not waiting for time to do the work. Your score improves when you start taking action. And the sooner you do, the sooner your credit begins to reflect your current behavior, not your past.

Is it better to pay off old debt or build new credit when your score is low?

You need to do both, but when it comes to raising your credit score fast, new positive activity often has the biggest impact.

Here’s why: Credit scoring models place more weight on current behavior than on the past. That means if you’re only focused on paying down old debt, your score may not budge much, especially if that debt is already charged off or in collections. On the other hand, adding new accounts and using them wisely gives the credit bureaus something positive to report.

For example, someone with a 620 score who opens a secured credit card, keeps the balance below 10%, and makes on-time payments each month can start to see their score rise within a few billing cycles. And if they add an installment loan, like the one offered through the Credit Rebuilder Program, the impact can be even stronger.

That said, paying down revolving debt (like credit cards) is still critical, especially if your credit utilization is high. But the real key is balance: clean up what you can, and start building new credit at the same time.

Should I stop using credit and go cash-only?

No, and here’s why: You need credit to build credit.

It’s completely understandable to want to ditch credit altogether, especially if you’ve gone through a bankruptcy or struggled with debt. Going cash-only can feel like a fresh start. But over the long run, avoiding credit entirely can hurt more than it helps.

Here’s the deal: Your credit score is based on your use of credit. If you don’t have active accounts reporting to the credit bureaus, there’s nothing to measure. That means even if you’re financially responsible, your score can drop because there’s no recent activity to track.

Eventually, you’ll need your credit score, whether it’s for renting an apartment, buying a car, getting a mortgage, or even setting up utilities. If you’ve been off the grid for too long, you might face high deposits, higher interest rates, or outright denials.

The smarter move is to use credit strategically. That means opening the right accounts, using them for small purchases, and paying them off in full each month. This builds a strong credit history without getting you back into debt. Programs like the free credit-education program, 7 Steps to a 720 Credit Score, are designed to walk you through exactly how to do this.

Will paying off my collections help my credit score?

Not necessarily. A lot of people assume that once you pay off a collection account, your credit score will go up. But that’s not always how it works.

Here’s why: Once a collection shows up on your credit report, the damage is already done, and simply paying it off doesn’t erase the mark. That collection can remain on your report for up to seven years, whether it’s paid or unpaid. And many credit scoring models, especially the older ones, continue to factor it in even after it’s been paid.

Some newer scoring models ignore paid collections entirely, especially if they’re medical debts. But most lenders still rely on older models, so it’s hard to know if paying the debt will actually improve your score.

There’s another risk, too: If the debt is past the statute of limitations and you make a payment, you might restart the legal clock. That means the account could become collectible again or even show up longer on your report.

One possible workaround? Negotiate a pay-for-delete agreement. That’s when you ask the collection agency to remove the item from your report entirely in exchange for payment. It’s not guaranteed, and it’s discouraged by credit bureaus, but it does happen. If successful, it could raise your score by 50 to 100 points. (Step 6 of the 7 Steps to a 720 Credit Score, our free credit-education course, walks you through how to do this.)

Even if deletion isn’t possible, paying the debt can still bring peace of mind and prevent future collection efforts. But if your goal is to boost your score, the biggest gains usually come from building new credit habits: on-time payments, low balances, and responsible use of credit going forward.