43% Of Robinhood Users Have A FICO Below 650, Have Increased Investment By 2x In Spite Of Pandemic

Our data showed that a small majority (42.65%) of Robinhood users have what Experian would consider Very-Poor-to-Fair credit scores (credit scores below 650). A similar amount (41.74%) fall into the Fair-to-Good range of credit scores. The smallest segment of Robinhood users (15.61%) fall into the coveted Very-Good-to-Exceptional range.

Platform <650 650-750 >750
E-Trade 34.30% 46.60% 19.09%
Schwab 33.33% 45.50% 21.17%
TD Ameritrade 41.04% 41.91% 17.05%
Robinhood 42.65% 41.74% 15.61%

Comparison of trading platform users by credit score

Credit scores among Robinhood users break down fairly evenly with the other platforms, according to the data. It is notable, however, that Robinhood has the largest percentage of users with credit scores under 650 and the least percentage of users in the 650-750 and 750-or- better ranges.

Average Monthly Robinhood Balance by Credit Score

So, how do users on Robinhood stack up by credit score over the last 12 months?

Among those Robinhood users with credit scores of 750 or better, the average account balance of those users grew 464% over the last 12 months. Robinhood users in the 650-750 FICO range increased their account balances by 135% while those with credit scores under 650 increased their balances by an average of 92%.

Interestingly, while lower- and mid-range FICO score users’ account balances did not grow at the same rate as users with high credit scores, their account balances saw less volatility. Users in the 750+ range saw large month-over-month growth in July and September of 2020 but also saw a large dip in average account balance in December 2020. Users in the other FICO buckets saw, more or less, consistent growth in the average account balance.

Investment Growth Among Lower-FICO Score Users on Robinhood

The data raises an interesting question: Why are Robinhood users with lower credit scores continue to invest more money with the platform?

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