Economía y Agricultura en Puerto Rico – Eduardo Bonilla

The Average Credit in Puerto Rico: Challenges, Gaps, and Opportunities (English Version)

The credit score is one of the most influential financial indicators in the life of any consumer. Credit scores range from 300 to 850 points, and the higher the score, the better the opportunities for accessing loans and obtaining lower interest rates. This number determines whether a person can secure a mortgage, obtain credit cards, car loans, and much more. In Puerto Rico, the average credit score reflects a unique reality: distinct economic conditions, a demanding financial system, and an urgent need to strengthen financial education.

Puerto Rico in Perspective

In Puerto Rico, the average credit score fluctuates between 650 and 660 points, according to credit agency data. This figure places the island below the United States average, which is around 717 points (2024, FICO).

Although 50–60 points may not seem like much, it actually is. This difference translates into higher interest rates. In other words, a Puerto Rican consumer faces higher interest rates, stricter requirements, and less access to competitive financial products compared to their mainland counterpart.

Factors Explaining the Situation in Puerto Rico

Lower Incomes and Economic Inequality

• Income in Puerto Rico is considerably lower than in most states. This factor reduces the ability to save, which increases reliance on credit for essential expenses.

High Levels of Personal Debt

• Many families resort to personal loans and credit cards to cover daily needs, which increases balances and deteriorates credit scores.

Migration and Brain Drain

• The constant emigration of young people from our island to the United States creates instability in the labor market, which limits the growth of consumers with stronger credit profiles.

Limited Financial Education

• The lack of knowledge about how credit works leads to common mistakes. Among them are: making only the minimum payment, closing accounts, and not understanding the impact of multiple credit inquiries.

Implications for the Island’s Economy

The credit situation on the island is not just an individual problem; it is also something that affects the economy.

• Limited Access to Housing: Young people and families face higher barriers to purchasing homes due to their credit scores and low incomes, which weakens the mortgage market.
• Restricted Consumption: High interest rates reduce purchasing power and slow down the demand for durable goods.
• Lower Entrepreneurship: Local small business owners face obstacles in securing financing, which affects innovation and job creation.

Strategies to Close the Gap

Accessible Financial Education Programs: Initiatives should be implemented in schools and communities to teach responsible credit management.

Refinancing Policies and Consumer Support: Programs should be created to facilitate debt consolidation and reward responsible payment.

Encouraging Savings and Liquidity: The habit of saving should be promoted before resorting to credit as the first option.

Conclusion

The average credit score on our island reveals a difficult reality: high levels of debt, economic inequality, and limitations in financial education. This represents an opportunity to invest in education programs, technological tools, and effective public policies. With these measures, it is possible to improve consumers’ credit histories and thereby strengthen the local economy. Improving the island’s average credit score will not only benefit each consumer but also open the door to a stronger and more equitable economic development for Puerto Rico.

The Official Sponsor of this article is:

De Mi Tierra a Mi Pueblo Corp. 🌱Committed to Agriculture and Food Security in Puerto Rico.

References

• Experian. Average U.S. FICO Score Hits Record High. (2024).
• Federal Reserve Bank of New York. Household Debt and Credit Report.
• Departamento de Hacienda de Puerto Rico. Informe Económico al Gobernador.
• TransUnion Puerto Rico. Estadísticas de Crédito en la Isla.

August 28, 2025