Credit Score

Average Credit Score By State & City

By John Boitnott

Data & Guides Credit Score Average Credit Score By State & City

No three digits mean more to the economic trajectory of your life than the numbers that make up your credit score.

Your score, such as the popular FICO® scoring system analyzed here, could affect your ability to secure a place to live, no matter whether you rent or buy. It can determine your ability to buy a car with a car loan. Even your ability to buy something as ubiquitous as a cell phone can depend on your credit score. Your FICO® credit score is used by 90% of top lenders. [1] My FICO, “What is a Credit Score?” Accessed August 2024 https://www.myfico.com/credit-education/credit-scores

What’s more, seemingly innocuous actions, such as even authorizing an inquiry about your credit score, can cause your credit score to change. This article will break down the variations in average credit scores by state and city in the U.S. and look at the factors that affect them.

Key statistics

• Residents of Minnesota have the highest average credit score in the United States (742).
• Residents of Mississippi have the lowest average credit score in the United States (680).
• From 2022 to 2023, the average state increased its average credit score by 1 point, with Arizona (696 to 706) seeing the biggest increase and North Dakota (727 to 730) seeing the smallest.
• All states had average credit scores in the good credit score range (between 670 and 739), except for Minnesota which falls into the very good range.
• The average credit score in the U.S. across all states is 718.

Average Credit Score by State - Map [2] Experian, “What is the Average Credit Score in the U.S.?” Accessed August 2024 https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/

Average Credit Score by State - Table

The state with the highest average credit score is Minnesota at 742, it’s also the only state whose average credit score falls into FICO’s Very Good range. The lowest scoring state is Mississippi with an average credit score of 680, though this is still in FICO’s Good range.

Sources [2] Experian, “What is the Average Credit Score in the U.S.?” Accessed August 2024 https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/ [3] Experian, “Average Credit Card Debt Increases 10% to $6,501 in 2023” Accessed August 2024 https://www.experian.com/blogs/ask-experian/state-of-credit-cards/ [4] BLS, “Occupational Employment and Wage Statistics” Accessed August 2024 https://www.bls.gov/oes/tables.htm

The Highest and Lowest Scoring States

States with the Highest Average Credit Score

• Minnesota - 742
• Vermont - 737
• Wisconsin - 737
• New Hampshire - 736
• Washington - 735

States with the Lowest Average Credit Score

• Mississippi - 680
• Louisiana - 690
• Alabama - 692
• Texas - 695
• Georgia - 695

Top 50 cities ranked by credit score

According to data from WalletHub, the top ranking city when it comes to credit scores is South Burlington, Vermont with an average score of 736. This is followed by San Francisco and Huntington Beach, both in California, and Scottsdale, Arizona, all with an average score of 722.

Source [5] WalletHub, “Cities with the Highest and Lowest Credit Scores in 2024” Accessed August 2024 https://wallethub.com/edu/credit-score-by-city/86509

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The Scores

When you look at your credit reports from one of the three main rating agencies (Equifax, Experian, and TransUnion), the information in these reports determines the three-digit number that is your credit score.

However, several factors actually go into calculating a credit score. Moreover, when an institution runs your credit, they could be obtaining your score from one of two possible scoring models.

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. [6] My FICO, “How Are FICO Scores Calculated?” Accessed August 2024 https://www.myfico.com/credit-education/whats-in-your-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 balances and available credit, total credit usage, and new accounts opened.

There are common behaviors that people with high credit scores share: they make on-time payments, have a mix of different credit accounts, and have a long credit history. [6] My FICO, “How Are FICO Scores Calculated?” Accessed August 2024 https://www.myfico.com/credit-education/whats-in-your-credit-score But there are other factors that can also affect creditworthiness.

Income instability can affect a person’s credit. Whether or not a person has money coming in regularly to pay bills on time can certainly impact things like delinquencies in credit card and loan payments.

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. 

As of Q3 2023, the Americans’ average credit card debt in $6,501, an increase of 10% over the previous year. [3] Experian, “Average Credit Card Debt Increases 10% to $6,501 in 2023” Accessed August 2024 https://www.experian.com/blogs/ask-experian/state-of-credit-cards/

Data suggests that high levels of credit card debt aren’t the primary causes of poor credit performance. Alaska, and New Jersey 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. [2] Experian, “What is the Average Credit Score in the U.S.?” Accessed August 2024 https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/ [3] Experian, “Average Credit Card Debt Increases 10% to $6,501 in 2023” Accessed August 2024 https://www.experian.com/blogs/ask-experian/state-of-credit-cards/

Sources

• ^[1] My FICO, “What is a Credit Score?” Accessed August 2024 https://www.myfico.com/credit-education/credit-scores
• ^[2] Experian, “What is the Average Credit Score in the U.S.?” Accessed August 2024 https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/
• ^[3] Experian, “Average Credit Card Debt Increases 10% to $6,501 in 2023” Accessed August 2024 https://www.experian.com/blogs/ask-experian/state-of-credit-cards/
• ^[4] BLS, “Occupational Employment and Wage Statistics” Accessed August 2024 https://www.bls.gov/oes/tables.htm
• ^[5] WalletHub, “Cities with the Highest and Lowest Credit Scores in 2024” Accessed August 2024 https://wallethub.com/edu/credit-score-by-city/86509
• ^[6] My FICO, “How Are FICO Scores Calculated?” Accessed August 2024 https://www.myfico.com/credit-education/whats-in-your-credit-score