Which US states have the highest and lowest credit scores?

7 min read

It seems as if Americans as a whole have reasonably high credit scores throughout the country, although the actual numbers vary from state to state, with only 1.6% of the 232 million Americans with credit scores having a perfect score of 850.

Based on the WalletHub study released in November, the average credit score in the midwestern state as of the first quarter of 2023 is 726. Using this score, Washington, DC, as well as all 50 states, were ranked highest in the nation.

According to the results of WalletHub’s investigation, Mississippi has the lowest average credit score of any state, at 673, making it the least creditworthy state. Among the states in the country, California has an average credit score of 707 and New York has an average credit score of 707.

There are a large number of underlying variables which can affect the way in which people manage their credit and, therefore, contribute to the diversity of the credit scores across the United States, including income levels, educational opportunities, employment rates, and other economic conditions.

In the study conducted by WalletHub, Thomas Hanson, an assistant professor of finance at Minnesota State University Moorhead, said that Minnesota scores high on most economic indicators (and does so better than Mississippi) and its average credit score reflects that state’s generally stronger economy.

There are a number of US states listed below that have a high average credit score and a low average credit score according to WalletHub.

Among the highest

Minnesota 726

New Hampshire 724

Vermont 721 

Washington 719 

Massachusetts 719 

Wisconsin 718 

N Dakota 718 

S Dakota 718

Hawaii 716 

Montana 716 

Among the lowest

Mississippi 673

Louisiana 677

Alabama 680

Arkansas 681

Texas 681

Oklahoma 682

Georgia 683

Kentucky 688

Nevada 688

W Virginia 688

What kind of credit score do you need?

FICO’s scoring mechanism, which determines the range of your credit score, ranges from 300 to 850, based on the amount of debt you owe. As a result of the credit score, lenders can determine whether lending to you would be risky and how well you would manage your debt when you go into debt. Although Mississippi’s average credit score is lower than that of other states in the country, Experian claims that it’s still considered a good score, even though its 673 is lower than most other states’.

Here is a list of the credit score ranges that Experian labels as bad, fair, excellent, very good, and outstanding based on its credit report information.

There are 300 to 579 people in the poor category

The rating is fair with a score between 580 and 669

Good: 670 to 739

Very good: 740 to 799

Exceptional: 800 to 850

There is no doubt that having a perfect 850 credit score will lead to you earning a lot of bragging rights, but those who have scores above 700 are usually eligible for the best terms and interest rates when it comes to loans. According to Christina Roman, who is the manager of consumer advocacy and education at Experian, make it is important to educate consumers.

A high credit score has the potential to save you money in the long run. The reason for this is the fact that the higher your credit score, the more likely it is that you will get an offer for the interest rate that you want on your credit card or mortgage, since lenders see you as a creditworthy borrower, thereby increasing your chances of getting the lowest interest rate possible.

The more credit you have, the more likely you are to be eligible for better offers. For example, you may be able to access credit cards that offer low-interest rates and no annual fees. In order to obtain a loan for a consumer with subprime credit, they usually have to make a larger deposit as well as pay a higher interest rate.

In spite of this, if you’re not satisfied with how your credit score seems to be, don’t panic. Experts in the field of financial advise that one of the best ways to improve your credit score is to maintain low outstanding balances and make sure that you are paying your bills on time regularly.

Getting to know how your credit score is determined is one of the easiest ways to improve it, according to Roman. Missing or late credit card payments might negatively impact your credit score, since your payment history accounts for 35% of your credit score.

The best thing you can do to improve your financial health and credit is to get engaged. According to Roman, there are many benefits to getting engaged. The first thing you should do is go through your credit report and make sure you understand what’s on it.”  

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