What state has the best and worst credit rating?

Minnesota has the highest average FICO credit score, with an average FICO score of 742. Mississippi has the lowest average FICO credit score, with an average FICO score of 680 .

What state has the most people with bad credit?

Mississippi holds the lowest average credit score at 680, which is 5% below the national average of 715. Rounding out the bottom five states are Louisiana (690), Alabama, (692), Texas (695), and Georgia (695) .

What states have the best credit scores?

Average credit scores by state in 2021 Minnesota had the highest credit score in the country as of 2021, the latest state data available from Experian, with an average score of 742. Minnesota is the only state in the country with an average credit score above 740.

What 3 states have the highest percent of their credit economy with prime credit scores?

Minnesota, New Hampshire, Vermont, Massachusetts, and Wisconsin lead the states with the highest credit scores nationwide. Minnesota boasts the highest average credit score in 2023, an impressive 725.

How many people have a 300 credit score?

16% of all consumers have FICO ® Scores in the Very Poor range (300-579).

Which race has the worst credit rating?

Black and Hispanic credit applicants are much more likely to report getting denied or receiving less credit than they initially requested from lenders, according to Federal Reserve data.

What's the average American credit score?

What is the average credit score? The average FICO credit score in the US is 717 , according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.

Why is Illinois credit rating so bad?

However, S&P also cites Illinois' high unfunded pension liabilities of $140 billion — and the “conservative” plan to have that 90% funded by 2045 — as a detrimental factor impacting Illinois' rating.

What is the best credit rating in USA?

For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2023, the average FICO ® Score ☉ in the U.S. reached 715.

Which 3 states prohibit the use of credit scores to set rates?

If you live in California, Hawaii, Massachusetts or Michigan your credit score isn't a rating factor. This is because these states' legislators feel that credit score evaluation may disadvantage low-income drivers.

States With the Best and Worst Credit Scores (2024)

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The average FICO credit score is 717, and the average VantageScore credit score is 702.
Minnesota has the highest average FICO credit score, with an average FICO score of 742.
Mississippi has the lowest average FICO credit score, with an average FICO score of 680.

The average FICO credit score in right now is 717 and the average VantageScore credit score as of March 2024 was 702. However, average credit scores vary widely based on a number of factors, including age, income, immigration status, health, and race.

Average credit scores also vary significantly based on location. The average Minnesota resident has a 742 FICO credit score, the highest average of any state. Meanwhile, the state with the lowest average FICO credit score is Mississippi, at 680.

10 states with the highest average credit score

According to data gathered by Experian, the 10 states with the highest average credit scores in the third quarter of 2023 are as follows:

States	Average FICO score (2023)
1. Minnesota	742
2. Vermont	737
3. Wisconsin	737
4. New Hampshire	736
5. Washington	735
6. South Dakota	734
7. North Dakota	733
8. Hawaii	732
9. Massachusetts	732
10. Montana	732
11. Oregon	732

The highest average VantageScore credit scores as of March 2024 are as follows:

States	Average VantageScore 4.0 score (2024)
1. Minnesota	728
2. New Hampshire	726
3. Vermont	724
4. Washington	722
5. Massachusetts	721
6. Wisconsin	721
7. South Dakota	719
8. Colorado	719
9. Hawaii	720
10. Montana	718

10 states with the lowest average credit score

Credit scores have improved over the past couple of decades. In 2012, the average FICO credit score was 689 compared to 718 in 2023. Yet some states continue to lag behind the national average. The 10 states with the lowest average credit scores in 2023 are as follows:

States	Average FICO score (2023)
41. Nevada	702
42. New Mexico	702
43. South Carolina	699
44. Arkansas	696
45. Oklahoma	696
46. Georgia	695
47. Texas	695
48. Alabama	692
49. Louisiana	690
50. Mississippi	680

It's worth noting that of these 10 states, all but one are located in the South, defined by the US Census Bureau. However, even at the bottom of this list, the average resident in all these states would have a "prime" credit score, above 660. Average credit scores were not always what they are today. The average FICO score in October 2005 was 688 and has steadily risen over the past two decades.

You'd also think that the states with the lowest credit scores would have the most debt, though this isn't the case. In fact, Mississippi has the lowest average credit card debt and the second lowest average debt among all states.

The 10 states with the lowest average VantageScore credit scores show a similar pattern, predominantly comprised of southern states.

States	Average VantageScore 4.0 score (2024)
41. South Carolina	688
42. West Virginia	687
43. Kentucky	687
44. Georgia	682
45. Arkansas	681
46. Texas	681
47. Oklahoma	681
48. Alabama	679
49. Louisiana	675
50. Mississippi	668

How credit scores are categorized

The range of possible credit scores spans from 300 to 850, which FICO categorizes into five levels called risk categories. While lending decisions aren't solely determined by your credit score or which risk category you fall into, these help gauge how likely you are to qualify for a loan or credit card.

The five risk categories and their corresponding ranges are:

How do you raise your credit score?

Improving your credit score isn't a matter of eliminating negative information from your credit report, but building positive information on top of your negative information.

You should prioritize making payments on your current lines of credit on time and make sure your overall balance isn't too high. If your minimum payments are posing a problem each month, consider consulting with a credit counselor and signing up for a debt management plan.

The best debt management servicescan negotiate a lower interest rate with your creditors or lower your minimum payments in exchange for longer payment periods.

You can also look into credit-building products such as credit builder loans. These will add payment history to your credit reports and accept your application without a credit check. Rent reporting services will also help you build your payment history by reporting any rent payments you make to the credit bureaus, which doesn't automatically happen. You can find our guides on the best credit builder loans and best rent reporting services here.

Keeping tabs on your credit score is a good habit to get into, so you'll know your financial standing in the eyes of creditors at any given point. Until the end of 2023, you can request weekly free credit reports from AnnualCreditReport.com. After 2023, you can request three free credit reports annually, one from each of the credit bureaus.

You can also check your credit scorewith a credit monitoring service. Some of the best credit monitoring services are even free.

Average credit scores by state frequently asked questions

Do you need to have a perfect credit score?

No, you don't need to have a perfect credit score. While a perfect 850 score may seem ideal, those with credit scores above 700 typically qualify for the best interest rates and lending terms. A high score can help you save money in the long run because it shows lenders you are a responsible borrower, so they're more likely to give you the most favorable interest rates.

Why are credit scores worse in the South?

Credit scores being worse in the South is the result of medical debt, according to an analysis from The Washington Post. On average, residents in these states have higher medical debts than residents in other states, which the analysis attributes to whether those states expanded Medicaid. While medical debt has been deprioritized in FICO score calculations and nixed entirely on VantageScore calculations, the financial effect is still significant enough to bring down credit scores in the South.

How long does bad credit last?

Bad credit can last for years. Even though negative credit marks hurt your score less and less as time goes on, missed payments and collections can stay on your report for seven years, while bankruptcy is reported for 10.

FICO risk category	FICO score range
Excellent	800-850
Very Good	740-799
Good	670-739
Fair	580-669
Poor	300-579