No three digits mean more to the economic trajectory of your life than the numbers that make up your credit score. Ninety percent of lenders factor in your credit score when deciding whether or not to lend money to you. [4] This is the average FICO credit score — how does your score stack up? https://www.bankrate.com/personal-finance/credit/average-fico-credit-score/
Your score, such as the popular FICO® scoring system analyzed here and used by the majority of lenders, affects your ability to secure a place to live, no matter whether you rent or buy. It determines your ability to buy a car and to get loans. Even your ability to buy something as ubiquitous as a cell phone can depend on your credit score.
What’s more, seemingly innocuous and recursive actions, such as even authorizing an inquiry about your credit score, can cause your credit score to change. Even your geographic location can play a role in your credit score. This article will break down the variations in credit scores across the country and look at the factors that affect them.
Key statistics
- Residents of Minnesota have the highest average credit score in the United States (739).
- Residents of Mississippi have the lowest average credit score in the United States (675).
- From 2019 to 2020, the average state increased its average credit score by 7 points, with Arizona (696 to 706) seeing the biggest increase and North Dakota (727 to 730) seeing the smallest.
- All states had average credit scores between 670 and 739 (“good”). The District of Columbia, though not technically a state, also fell into this range.
- 59 percent of Americans have a FICO® score of 700 or higher. [10] Average FICO score hits record high—here’s the average credit score in every state https://www.cnbc.com/select/average-fico-score-hits-record-high-703/
Average Credit Score by State - Map [2] Here’s The Average Credit Score By Age In The US https://www.rockethq.com/learn/credit/what-is-the-average-credit-score-by-age
Average Credit Score by State - Table
Source: [2] Here’s The Average Credit Score By Age In The US https://www.rockethq.com/learn/credit/what-is-the-average-credit-score-by-age [5] Average Income by State plus Median, Top 1%, and All Income Percentiles in 2019 https://dqydj.com/average-income-by-state-median-top-percentiles/
State | Average Credit Score - 2018 | Average Credit Score - 2019 | Average Credit Score - 2020 | Average Credit Card Balance - 2020 | Average Household Income - 2019 | Average Individual Income - 2019 |
---|---|---|---|---|---|---|
StateAlabama | Average Credit Score - 2018680 | Average Credit Score - 2019680 | Average Credit Score - 2020686 | Average Credit Card Balance - 2020$5,961 | Average Household Income - 2019$70,090.35 | Average Individual Income - 2019$50,286.94 |
StateAlaska | Average Credit Score - 2018704 | Average Credit Score - 2019707 | Average Credit Score - 2020714 | Average Credit Card Balance - 2020$8,516 | Average Household Income - 2019$91,268.57 | Average Individual Income - 2019$55,590.93 |
StateArizona | Average Credit Score - 2018694 | Average Credit Score - 2019696 | Average Credit Score - 2020706 | Average Credit Card Balance - 2020$6,389 | Average Household Income - 2019$87,823.18 | Average Individual Income - 2019$54,678.99 |
StateArkansas | Average Credit Score - 2018683 | Average Credit Score - 2019683 | Average Credit Score - 2020690 | Average Credit Card Balance - 2020$5,660 | Average Household Income - 2019$68,079.14 | Average Individual Income - 2019$47,713.22 |
StateCalifornia | Average Credit Score - 2018706 | Average Credit Score - 2019708 | Average Credit Score - 2020716 | Average Credit Card Balance - 2020$6,481 | Average Household Income - 2019$102,375.47 | Average Individual Income - 2019$62,695.45 |
StateColorado | Average Credit Score - 2018716 | Average Credit Score - 2019718 | Average Credit Score - 2020725 | Average Credit Card Balance - 2020$6,718 | Average Household Income - 2019$98,129.07 | Average Individual Income - 2019$62,712.11 |
StateConnecticut | Average Credit Score - 2018716 | Average Credit Score - 2019717 | Average Credit Score - 2020723 | Average Credit Card Balance - 2020$7,258 | Average Household Income - 2019$103,865.55 | Average Individual Income - 2019$69,556.64 |
StateDistrict of Columbia | Average Credit Score - 2018700 | Average Credit Score - 2019703 | Average Credit Score - 2020710 | Average Credit Card Balance - 2020$6,963 | Average Household Income - 2019$127,263.58 | Average Individual Income - 2019$90,013.72 |
StateDelaware | Average Credit Score - 2018700 | Average Credit Score - 2019701 | Average Credit Score - 2020713 | Average Credit Card Balance - 2020$6,336 | Average Household Income - 2019$93,957.11 | Average Individual Income - 2019$56,161.81 |
StateFlorida | Average Credit Score - 2018694 | Average Credit Score - 2019694 | Average Credit Score - 2020701 | Average Credit Card Balance - 2020$6,388 | Average Household Income - 2019$78,433.46 | Average Individual Income - 2019$53,993.12 |
StateGeorgia | Average Credit Score - 2018680 | Average Credit Score - 2019682 | Average Credit Score - 2020689 | Average Credit Card Balance - 2020$6,675 | Average Household Income - 2019$79,797.68 | Average Individual Income - 2019$54,689.97 |
StateHawaii | Average Credit Score - 2018721 | Average Credit Score - 2019723 | Average Credit Score - 2020727 | Average Credit Card Balance - 2020$6,981 | Average Household Income - 2019$108,561.68 | Average Individual Income - 2019$61,800.56 |
StateIdaho | Average Credit Score - 2018710 | Average Credit Score - 2019711 | Average Credit Score - 2020720 | Average Credit Card Balance - 2020$5,817 | Average Household Income - 2019$77,877.59 | Average Individual Income - 2019$48,007.86 |
StateIllinois | Average Credit Score - 2018709 | Average Credit Score - 2019709 | Average Credit Score - 2020716 | Average Credit Card Balance - 2020$6,410 | Average Household Income - 2019$97,212.04 | Average Individual Income - 2019$61,957.40 |
StateIndiana | Average Credit Score - 2018698 | Average Credit Score - 2019699 | Average Credit Score - 2020707 | Average Credit Card Balance - 2020$5,581 | Average Household Income - 2019$78,056.95 | Average Individual Income - 2019$50,842.49 |
StateIowa | Average Credit Score - 2018720 | Average Credit Score - 2019720 | Average Credit Score - 2020726 | Average Credit Card Balance - 2020$5,155 | Average Household Income - 2019$86,231.80 | Average Individual Income - 2019$51,763.54 |
StateKansas | Average Credit Score - 2018711 | Average Credit Score - 2019711 | Average Credit Score - 2020717 | Average Credit Card Balance - 2020$6,082 | Average Household Income - 2019$84,168.27 | Average Individual Income - 2019$54,065.48 |
StateKentucky | Average Credit Score - 2018691 | Average Credit Score - 2019692 | Average Credit Score - 2020698 | Average Credit Card Balance - 2020$5,555 | Average Household Income - 2019$80,547.15 | Average Individual Income - 2019$57,752.29 |
StateLouisiana | Average Credit Score - 2018675 | Average Credit Score - 2019677 | Average Credit Score - 2020684 | Average Credit Card Balance - 2020$6,074 | Average Household Income - 2019$71,388.37 | Average Individual Income - 2019$52,349.35 |
StateMaine | Average Credit Score - 2018712 | Average Credit Score - 2019715 | Average Credit Score - 2020721 | Average Credit Card Balance - 2020$5,784 | Average Household Income - 2019$74,331.65 | Average Individual Income - 2019$48,797.00 |
StateMaryland | Average Credit Score - 2018701 | Average Credit Score - 2019704 | Average Credit Score - 2020712 | Average Credit Card Balance - 2020$7,043 | Average Household Income - 2019$108,787.55 | Average Individual Income - 2019$64,840.89 |
StateMassachusetts | Average Credit Score - 2018721 | Average Credit Score - 2019723 | Average Credit Score - 2020729 | Average Credit Card Balance - 2020$6,327 | Average Household Income - 2019$117,996.28 | Average Individual Income - 2019$72,352.63 |
StateMichigan | Average Credit Score - 2018705 | Average Credit Score - 2019706 | Average Credit Score - 2020714 | Average Credit Card Balance - 2020$5,622 | Average Household Income - 2019$82,676.47 | Average Individual Income - 2019$54,632.12 |
StateMinnesota | Average Credit Score - 2018732 | Average Credit Score - 2019733 | Average Credit Score - 2020739 | Average Credit Card Balance - 2020$5,911 | Average Household Income - 2019$96,785.18 | Average Individual Income - 2019$61,072.55 |
StateMississippi | Average Credit Score - 2018666 | Average Credit Score - 2019667 | Average Credit Score - 2020675 | Average Credit Card Balance - 2020$5,421 | Average Household Income - 2019$60,922.93 | Average Individual Income - 2019$44,913.28 |
StateMissouri | Average Credit Score - 2018700 | Average Credit Score - 2019701 | Average Credit Score - 2020707 | Average Credit Card Balance - 2020$5,897 | Average Household Income - 2019$86,397.22 | Average Individual Income - 2019$56,185.39 |
StateMontana | Average Credit Score - 2018718 | Average Credit Score - 2019720 | Average Credit Score - 2020726 | Average Credit Card Balance - 2020$5,845 | Average Household Income - 2019$74,351.71 | Average Individual Income - 2019$48,907.27 |
StateNebraska | Average Credit Score - 2018722 | Average Credit Score - 2019723 | Average Credit Score - 2020728 | Average Credit Card Balance - 2020$5,630 | Average Household Income - 2019$89,613.73 | Average Individual Income - 2019$55,698.77 |
StateNevada | Average Credit Score - 2018684 | Average Credit Score - 2019686 | Average Credit Score - 2020695 | Average Credit Card Balance - 2020$6,401 | Average Household Income - 2019$83,997.52 | Average Individual Income - 2019$53,713.09 |
StateNew Hampshire | Average Credit Score - 2018722 | Average Credit Score - 2019724 | Average Credit Score - 2020729 | Average Credit Card Balance - 2020$6,490 | Average Household Income - 2019$101,016.39 | Average Individual Income - 2019$58,939.52 |
StateNew Jersey | Average Credit Score - 2018713 | Average Credit Score - 2019714 | Average Credit Score - 2020721 | Average Credit Card Balance - 2020$7,151 | Average Household Income - 2019$114,160.42 | Average Individual Income - 2019$72,209.43 |
StateNew Mexico | Average Credit Score - 2018685 | Average Credit Score - 2019686 | Average Credit Score - 2020694 | Average Credit Card Balance - 2020$6,317 | Average Household Income - 2019$75,956.72 | Average Individual Income - 2019$53,023.63 |
StateNew York | Average Credit Score - 2018710 | Average Credit Score - 2019712 | Average Credit Score - 2020718 | Average Credit Card Balance - 2020$6,671 | Average Household Income - 2019$102,330.23 | Average Individual Income - 2019$66,265.72 |
StateNorth Carolina | Average Credit Score - 2018693 | Average Credit Score - 2019694 | Average Credit Score - 2020703 | Average Credit Card Balance - 2020$6,117 | Average Household Income - 2019$75,741.17 | Average Individual Income - 2019$51,939.19 |
StateNorth Dakota | Average Credit Score - 2018726 | Average Credit Score - 2019727 | Average Credit Score - 2020730 | Average Credit Card Balance - 2020$5,511 | Average Household Income - 2019$86,102.51 | Average Individual Income - 2019$55,285.00 |
StateOhio | Average Credit Score - 2018704 | Average Credit Score - 2019705 | Average Credit Score - 2020711 | Average Credit Card Balance - 2020$5,843 | Average Household Income - 2019$82,985.94 | Average Individual Income - 2019$54,406.06 |
StateOklahoma | Average Credit Score - 2018682 | Average Credit Score - 2019682 | Average Credit Score - 2020690 | Average Credit Card Balance - 2020$6,296 | Average Household Income - 2019$74,872.16 | Average Individual Income - 2019$49,770.21 |
StateOregon | Average Credit Score - 2018716 | Average Credit Score - 2019718 | Average Credit Score - 2020727 | Average Credit Card Balance - 2020$6,012 | Average Household Income - 2019$91,458.36 | Average Individual Income - 2019$58,556.37 |
StatePennsylvania | Average Credit Score - 2018711 | Average Credit Score - 2019713 | Average Credit Score - 2020720 | Average Credit Card Balance - 2020$6,146 | Average Household Income - 2019$88,716.82 | Average Individual Income - 2019$57,129.88 |
StateRhode Island | Average Credit Score - 2018710 | Average Credit Score - 2019713 | Average Credit Score - 2020719 | Average Credit Card Balance - 2020$6,375 | Average Household Income - 2019$92,008.88 | Average Individual Income - 2019$61,366.45 |
StateSouth Carolina | Average Credit Score - 2018680 | Average Credit Score - 2019690 | Average Credit Score - 2020689 | Average Credit Card Balance - 2020$6,157 | Average Household Income - 2019$80,500.78 | Average Individual Income - 2019$54,595.77 |
StateSouth Dakota | Average Credit Score - 2018727 | Average Credit Score - 2019727 | Average Credit Score - 2020731 | Average Credit Card Balance - 2020$5,692 | Average Household Income - 2019$84,257.55 | Average Individual Income - 2019$55,242.63 |
StateTennessee | Average Credit Score - 2018689 | Average Credit Score - 2019690 | Average Credit Score - 2020697 | Average Credit Card Balance - 2020$5,975 | Average Household Income - 2019$79,019.22 | Average Individual Income - 2019$52,518.60 |
StateTexas | Average Credit Score - 2018680 | Average Credit Score - 2019680 | Average Credit Score - 2020688 | Average Credit Card Balance - 2020 | Average Household Income - 2019$84,470.84 | Average Individual Income - 2019$55,079.66 |
StateUtah | Average Credit Score - 2018714 | Average Credit Score - 2019716 | Average Credit Score - 2020723 | Average Credit Card Balance - 2020$5,960 | Average Household Income - 2019$100,221.80 | Average Individual Income - 2019$54,636.20 |
StateVirginia | Average Credit Score - 2018725 | Average Credit Score - 2019726 | Average Credit Score - 2020731 | Average Credit Card Balance - 2020$7,161 | Average Household Income - 2019$84,281.16 | Average Individual Income - 2019$52,407.50 |
StateVermont | Average Credit Score - 2018708 | Average Credit Score - 2019709 | Average Credit Score - 2020717 | Average Credit Card Balance - 2020$5,924 | Average Household Income - 2019$105,791.79 | Average Individual Income - 2019$68,058.62 |
StateWashington | Average Credit Score - 2018721 | Average Credit Score - 2019723 | Average Credit Score - 2020730 | Average Credit Card Balance - 2020$6,592 | Average Household Income - 2019$106,407.57 | Average Individual Income - 2019$65,265.92 |
StateWest Virginia | Average Credit Score - 2018686 | Average Credit Score - 2019687 | Average Credit Score - 2020695 | Average Credit Card Balance - 2020$5,547 | Average Household Income - 2019$66,563.23 | Average Individual Income - 2019$47,398.82 |
StateWisconsin | Average Credit Score - 2018718 | Average Credit Score - 2019725 | Average Credit Score - 2020732 | Average Credit Card Balance - 2020$5,363 | Average Household Income - 2019$80,671.17 | Average Individual Income - 2019$50,101.16 |
StateWyoming | Average Credit Score - 2018711 | Average Credit Score - 2019712 | Average Credit Score - 2020719 | Average Credit Card Balance - 2020$6,245 | Average Household Income - 2019$80,293.39 | Average Individual Income - 2019$53,248.20 |
AVERAGES | Average Credit Score - 2018704 | Average Credit Score - 2019705 | Average Credit Score - 2020712 | Average Credit Card Balance - 2020$6,209 | Average Household Income - 2019$88,212 | Average Individual Income - 2019$56,964 |
Top 50 Metro Areas ranked by FICO score
Source: [3] Experian - 2019 Consumer Credit Review https://www.experian.com/blogs/ask-experian/consumer-credit-review/
Market | 2015 | 2016 | 2017 | 2018 | 2019 |
---|---|---|---|---|---|
MarketBoulder, CO | 2015735 | 2016737 | 2017738 | 2018740 | 2019743 |
MarketMadison, WI | 2015733 | 2016735 | 2017736 | 2018737 | 2019740 |
MarketRochester, MN | 2015736 | 2016739 | 2017739 | 2018740 | 2019740 |
MarketBismarck, ND | 2015735 | 2016738 | 2017737 | 2018739 | 2019739 |
MarketCorvallis, OR | 2015732 | 2016736 | 2017735 | 2018736 | 2019738 |
MarketAppleton, WI | 2015726 | 2016729 | 2017730 | 2018730 | 2019737 |
MarketSan Jose-Sunnyvale-Santa Clara, CA | 2015727 | 2016731 | 2017732 | 2018735 | 2019737 |
MarketState College, PA | 2015729 | 2016732 | 2017733 | 2018734 | 2019737 |
MarketBurlington-South Burlington, VT | 2015729 | 2016731 | 2017732 | 2018733 | 2019735 |
MarketAmes, IA | 2015729 | 2016732 | 2017732 | 2018733 | 2019734 |
MarketDubuque, IA | 2015730 | 2016732 | 2017732 | 2018734 | 2019734 |
MarketIthaca, NY | 2015725 | 2016729 | 2017731 | 2018733 | 2019734 |
MarketMinneapolis-St. Paul-Bloomington, MN-WI | 2015726 | 2016729 | 2017730 | 2018732 | 2019734 |
MarketSan Francisco-Oakland-Fremont, CA | 2015722 | 2016726 | 2017728 | 2018730 | 2019733 |
MarketSan Luis Obispo-Paso Robles, CA | 2015724 | 2016727 | 2017729 | 2018731 | 2019733 |
MarketSheboygan, WI | 2015728 | 2016731 | 2017731 | 2018732 | 2019733 |
MarketBarnstable Town, MA | 2015726 | 2016730 | 2017730 | 2018731 | 2019732 |
MarketLa Crosse, WI-MN | 2015725 | 2016729 | 2017728 | 2018731 | 2019732 |
MarketSt. Cloud, MN | 2015727 | 2016729 | 2017730 | 2018732 | 2019732 |
MarketBellingham, WA | 2015721 | 2016725 | 2017725 | 2018728 | 2019731 |
MarketHolland-Grand Haven, MI | 2015723 | 2016728 | 2017728 | 2018730 | 2019731 |
MarketCharlottesville, VA | 2015722 | 2016726 | 2017726 | 2018728 | 2019730 |
MarketGreen Bay, WI | 2015722 | 2016726 | 2017727 | 2018728 | 2019730 |
MarketIowa City, IA | 2015726 | 2016728 | 2017727 | 2018729 | 2019730 |
MarketMankato-North Mankato, MN | 2015726 | 2016728 | 2017729 | 2018729 | 2019730 |
MarketWausau, WI | 2015720 | 2016722 | 2017727 | 2018728 | 2019730 |
MarketAnn Arbor, MI | 2015715 | 2016722 | 2017724 | 2018726 | 2019729 |
MarketFargo, ND-MN | 2015725 | 2016727 | 2017727 | 2018729 | 2019729 |
MarketFort Collins-Loveland, CO | 2015721 | 2016723 | 2017724 | 2018726 | 2019729 |
MarketSanta Rosa-Petaluma, CA | 2015719 | 2016724 | 2017725 | 2018727 | 2019729 |
MarketSioux Falls, SD | 2015722 | 2016725 | 2017726 | 2018729 | 2019729 |
MarketDuluth, MN-WI | 2015722 | 2016724 | 2017725 | 2018727 | 2019728 |
MarketFond du Lac, WI | 2015727 | 2016728 | 2017727 | 2018728 | 2019728 |
MarketBoston-Cambridge-Quincy, MA-NH | 2015720 | 2016723 | 2017724 | 2018725 | 2019727 |
MarketEau Claire, WI | 2015717 | 2016721 | 2017723 | 2018725 | 2019727 |
MarketGrand Forks, ND-MN | 2015720 | 2016723 | 2017724 | 2018726 | 2019727 |
MarketHonolulu, HI | 2015719 | 2016722 | 2017723 | 2018725 | 2019727 |
MarketLancaster, PA | 2015719 | 2016724 | 2017724 | 2018725 | 2019727 |
MarketLincoln, NE | 2015722 | 2016725 | 2017724 | 2018726 | 2019727 |
MarketOshkosh-Neenah, WI | 2015718 | 2016720 | 2017721 | 2018722 | 2019727 |
MarketSanta Cruz-Watsonville, CA | 2015716 | 2016721 | 2017723 | 2018725 | 2019727 |
MarketSeattle-Tacoma-Bellevue, WA | 2015714 | 2016719 | 2017721 | 2018724 | 2019726 |
MarketLogan, UT-ID | 2015716 | 2016718 | 2017721 | 2018724 | 2019725 |
MarketNapa, CA | 2015715 | 2016719 | 2017721 | 2018724 | 2019725 |
MarketWenatchee, WA | 2015717 | 2016718 | 2017720 | 2018724 | 2019725 |
MarketBremerton-Silverdale, WA | 2015716 | 2016719 | 2017721 | 2018723 | 2019724 |
MarketMount Vernon-Anacortes, WA | 2015717 | 2016719 | 2017719 | 2018722 | 2019724 |
MarketPortland-South Portland-Biddeford, ME | 2015714 | 2016718 | 2017719 | 2018720 | 2019724 |
MarketBend, OR | 2015704 | 2016710 | 2017715 | 2018720 | 2019723 |
MarketBridgeport-Stamford-Norwalk, CT | 2015717 | 2016716 | 2017716 | 2018722 | 2019723 |
MarketPortland-Vancouver-Beaverton, OR-WA | 2015710 | 2016715 | 2017717 | 2018720 | 2019723 |
The Highest and Lowest Scoring States
States with the Highest Average Credit Score
- Minnesota — 739
- Wisconsin - 732
- South Dakota - 731
- Vermont - 731
- North Dakota - 730
States with the Lowest Average Credit Score
- South Carolina - 689
- Texas - 688
- Alabama - 686
- Louisiana - 684
- Mississippi - 675
How to Build Credit When You Have None
Building credit from scratch can be a lot easier when you understand where to start and which mistakes to avoid.
Download our guideThe Scores
When individuals get their credit reports from one of the three main rating agencies (Equifax, Experian, and TransUnion), they concentrate mainly on the three-digit number that is the end result.
However, several factors actually go into calculating a credit score. Moreover, when an institution runs your credit, it will show you one of two possible scores.
The FICO score is a scoring model developed by the Fair Isaac Corporation (hence the initials used in the name). This score is calculated based on your payment history, the amount you owe relative to how much credit you have available, the length of your credit history, any new inquiries made, and the variety of credit that you have. [8] Average Credit Score in America: 2020 Report https://www.fool.com/the-ascent/research/average-credit-score/
Equifax, TransUnion, and Experian got together to develop their own score called the VantageScore, which on the surface seems similar to the FICO score. It uses the same range of 300 to 850, but takes into account additional factors such as the age of individual types of credit in your credit history as well as the percentage of credit limits used. [8] Average Credit Score in America: 2020 Report https://www.fool.com/the-ascent/research/average-credit-score/
The rating agencies can use either model to generate your credit score, but in 2019, Experian switched to using FICO scores. This choice was driven by the fact that though the models are similar, lenders opt for FICO scores in 90 percent of U.S. lending decisions. [10] Average FICO score hits record high—here’s the average credit score in every state https://www.cnbc.com/select/average-fico-score-hits-record-high-703/
Geographically, the states with highest credit scores tend to fall in the midwest and New England. The states with the lowest credit scores tend to fall in the Deep South with an average score of 658 versus a national average of 703.
There are common behaviors that people with high credit scores share: they don’t make late payments, they don’t max out the credit that’s available to them, etc. [9] People in These 9 States Have the Best Credit Scores in the Nation https://www.fool.com/the-ascent/credit-cards/articles/people-9-states-have-best-credit-scores-nation/ But there are other factors that can also affect credit worthiness.
Income instability can dramatically affect a person’s credit. Whether or not a person has money coming in regularly to pay the bills can certainly impact things like delinquencies in credit card and loan payments. Higher unemployment rates and more frequently occurring natural disasters can also have a direct effect on an individual’s need to use credit at higher amounts and increase the risk of delinquencies.
There is a definite correlation between average credit score and average income. While there isn’t a huge discrepancy in credit card balances carried between the five highest-scoring and the five lowest-scoring states, there is a $10,000+ per year gap in individual income, and a still-larger gap in household income.
There is also a correlation between the lowest performing states and the rates of delinquencies for those states. Of the several factors that go into calculating a credit score, the one carrying the most weight is payment history. [7] Experian - Credit Scores Lower in States With High Ratios of Delinquent Accounts https://www.experian.com/blogs/ask-experian/research/credit-scores-lower-in-states-with-high-ratios-of-delinquent-accounts/ Louisiana has the second lowest average credit score and has the highest rate of delinquency. Minnesota has the highest average credit score in the nation and has the lowest rate of delinquency.
State | Average Credit Score - 2020 | Average Credit Card Balance - 2020 | Average Household Income-2019 | Average Individual Income - 2019 |
---|---|---|---|---|
StateMinnesota | Average Credit Score - 2020739 | Average Credit Card Balance 2020$5,911 | Average Household Income - 2019$96,785.18 | Average Individual Income - 2020$61,072.55 |
StateVermont | Average Credit Score - 2020731 | Average Credit Card Balance 2020$5,924 | Average Household Income - 2019$105,791.79 | Average Individual Income - 2020$68,058.62 |
StateSouth Dakota | Average Credit Score - 2020731 | Average Credit Card Balance 2020$5,692 | Average Household Income - 2019$84,257.55 | Average Individual Income - 2020$55,242.63 |
StateNew Hampshire | Average Credit Score - 2020729 | Average Credit Card Balance 2020$6,490 | Average Household Income - 2019$101,016.39 | Average Individual Income - 2020$58,939.52 |
StateNevada | Average Credit Score - 2020695 | Average Credit Card Balance 2020$6,401 | Average Household Income - 2019$83,997.52 | Average Individual Income - 2020$53,713.09 |
StateGeorgia | Average Credit Score - 2020689 | Average Credit Card Balance 2020$6,675 | Average Household Income - 2019$79,797.68 | Average Individual Income - 2020$54,689.97 |
StateAlabama | Average Credit Score - 2020686 | Average Credit Card Balance 2020$5,961 | Average Household Income - 2019$70,090.35 | Average Individual Income - 2020$50,286.94 |
StateLouisiana | Average Credit Score - 2020684 | Average Credit Card Balance 2020$6,074 | Average Household Income - 2019$71,388.37 | Average Individual Income - 2020$52,349.35 |
StateMississippi | Average Credit Score - 2020675 | Average Credit Card Balance 2020$5,421 | Average Household Income - 2019$60,922.93 | Average Individual Income - 2020$44,913.28 |
StateMassachusetts | Average Credit Score - 2020629 | Average Credit Card Balance 2020$6,327 | Average Household Income - 2019$117,996.28 | Average Individual Income - 2020$72,352.63 |
The difficulty in analyzing data using average income is because high incomes skew the data. Think of the old joke about Bill Gates walking into a bar. When you average it out, everyone in the bar is a millionaire. What further complicates this is the other end of the spectrum—low incomes.
Individuals with low incomes often do not have enough credit activity and payment history to build a strong credit profile, and thus often aren’t counted. [6] Minnesota Residents Have Highest Average Credit Scores https://www.usnews.com/news/best-states/articles/2019-12-02/minnesota-has-highest-credit-scores About 11 percent of the adult population of the United States has no credit record at all, and 8.3 percent of adults do not have enough of a credit history to generate a score. [8] Average Credit Score in America: 2020 Report https://www.fool.com/the-ascent/research/average-credit-score/
Credit Card Debt
One interesting area to look at is credit card debt. While average credit card balances are rising, Americans seem to be handling it well overall. The average FICO score for consumers with a credit card is 727.
In 2019, 67 percent of Americans used a credit card regularly. Americans’ average credit card debt in 2019 was $6,194, an increase of 3 percent over the previous year. [3] Experian - 2019 Consumer Credit Review https://www.experian.com/blogs/ask-experian/consumer-credit-review/ States with both the highest and lowest average credit scores have average card balances between $5600 to $6600. However, when you look at income, it appears that the states with higher scores have incomes that can much more easily and quickly pay off those balances.
Even so, data suggests that high levels of credit card debt aren’t the primary causes of poor credit performance. New Jersey, Virginia, Maryland, Hawaii, Connecticut, and New York are among the states with the highest average credit card debt, yet they are all solidly in the middle for credit scores, being neither the best nor the worst. [7] Experian - Credit Scores Lower in States With High Ratios of Delinquent Accounts https://www.experian.com/blogs/ask-experian/research/credit-scores-lower-in-states-with-high-ratios-of-delinquent-accounts/
Credit Utilization
A major correlation between the states with the highest and lowest credit scores is credit utilization, defined as the ratio of the amount of credit you are using compared to your credit limit. [12] What is a Credit Utilization Ratio? https://www.huffpost.com/entry/what-is-a-credit-utilization-ratio_b_59d6cb48e4b0cf2548b335ce For example, if you have a revolving line of unsecured debt (like a credit card) with a limit of $10,000, and you are carrying a balance of $1,000, your credit utilization ratio is 10 percent.
According to Experian, the utilization rate on revolving credit accounts is lower in the northern part of the United States with higher average credit scores than it is in the southern states with lower average credit scores. [11] This Map Shows The Average Credit Score In Every State https://www.huffpost.com/entry/average-credit-score-by-state-map_l_5ce304c3e4b0877009932a48
Interestingly, one of the plus sides of credit scores taking credit utilization into account is that a credit utilization ratio can be improved much more quickly than other factors such as payment history. If you have a lender using Vantage Scores as part of the credit check, lowering your utilization ratio on revolving debt will definitely work in your favor.
Sources
- [1] The Average Credit Score By State https://www.thebalance.com/the-average-credit-score-by-state-4161310
- [2] Here’s The Average Credit Score By Age In The US https://www.rockethq.com/learn/credit/what-is-the-average-credit-score-by-age
- [3] Experian - 2019 Consumer Credit Review https://www.experian.com/blogs/ask-experian/consumer-credit-review/
- [4] This is the average FICO credit score — how does your score stack up? https://www.bankrate.com/personal-finance/credit/average-fico-credit-score/
- [5] Average Income by State plus Median, Top 1%, and All Income Percentiles in 2019 https://dqydj.com/average-income-by-state-median-top-percentiles/
- [6] Minnesota Residents Have Highest Average Credit Scores https://www.usnews.com/news/best-states/articles/2019-12-02/minnesota-has-highest-credit-scores
- [7] Experian - Credit Scores Lower in States With High Ratios of Delinquent Accounts https://www.experian.com/blogs/ask-experian/research/credit-scores-lower-in-states-with-high-ratios-of-delinquent-accounts/
- [8] Average Credit Score in America: 2020 Report https://www.fool.com/the-ascent/research/average-credit-score/
- [9] People in These 9 States Have the Best Credit Scores in the Nation https://www.fool.com/the-ascent/credit-cards/articles/people-9-states-have-best-credit-scores-nation/
- [10] Average FICO score hits record high—here’s the average credit score in every state https://www.cnbc.com/select/average-fico-score-hits-record-high-703/
- [11] This Map Shows The Average Credit Score In Every State https://www.huffpost.com/entry/average-credit-score-by-state-map_l_5ce304c3e4b0877009932a48
- [12] What is a Credit Utilization Ratio? https://www.huffpost.com/entry/what-is-a-credit-utilization-ratio_b_59d6cb48e4b0cf2548b335ce