Top Credit Score Averages Across the World
When it comes to credit scores, some countries stand out from the rest. According to credit scoring agency Experian, the countries with the highest average score in 2022 are Singapore (836), South Korea (792), Japan (788), China (772), and Taiwan (769).
Singapore's 836 score is significantly higher than many other nations, largely because of its sound economic outlook. Singapore boasts a strong currency, a low unemployment rate of around 2%, and well-managed government debt. It also has access to global capital markets and a highly educated population.
South Korea has earned its impressive credit score by adopting prudent fiscal policies that have resulted in a low budget deficit and debt levels. Combined with an ever-increasing emphasis on technological innovation, this has helped make South Korea's economy one of the most stable in Asia.
Japan has traditionally had a strong economy, with low public debt levels and steady GDP growth. Its banking system is composed mainly of “megabanks” which are subject to strict regulations against risk-taking – giving them an added level of security when it comes to its credit rating.
China's relatively high score may come as a surprise, given its ongoing trade disputes with the US and slower growth than other Asian economies. Yet China's banking system is extremely well capitalized, meaning it has plenty of cash reserves on hand when needed. The Chinese government also plays an active role in providing stimulus measures such as tax cuts to ensure economic growth remains strong in spite of external pressures.
Taiwan rounds out the top five countries for average credit score due largely to the island nation's low government debt levels and generally sound fiscal policies – including taxation reform implemented in 2016 that improved incentives for businesses investing in Taiwan. Its high tech industry combined with export-led growth has enabled Taiwan to remain competitive even amid increasing global competition.
The United States of America has an average credit score of 703 according to Experian's 2022 report. This is considerably lower than the top five countries, but the US is still a major player in the global economy with a large market and diverse industries. The US has an extensive financial infrastructure, including the Federal Reserve System which helps regulate and maintain stability in the banking system and credit markets. American citizens also benefit from robust consumer protection laws and oversight by government agencies such as the Consumer Financial Protection Bureau (CFPB).
The US economy remains strong as evidenced by its low unemployment rate, increasing disposable income levels, and steady GDP growth. Yet certain factors have resulted in a lower credit score when compared to other nations – namely higher levels of public debt (over $20 trillion) and widening trade deficits resulting from tariffs and other policies implemented by the current administration.
Nevertheless, Americans have access to numerous lending options such as mortgages, car loans, student loans, personal loans, and credit cards to build up their credit profiles over time. By borrowing responsibly and making timely payments on debt obligations each month, individuals can steadily improve their scores even in a challenging economic environment.