The average credit score in each state varies. The highest score is found in Minnesota and the lowest in Mississippi. A person's income bracket is closely tied to the amount of credit they are able to get. A credit score of 670-739 is considered acceptable. Millennials have one of the lowest credit scores.
Minnesota has the highest credit score
Minnesota is the state with the highest average credit score, topping the national average by 34 points. The reason for Minnesota's high credit score is the healthy economy, relatively low unemployment, stable housing prices, and conservative debt management. Minnesota residents can expect a rise in credit scores within the next year. Many credit card companies offer lower interest rates to residents with strong credit scores.
The average credit score varies greatly by state, but the highest average is found in Minnesota, while the lowest is found in Mississippi. Credit scores are calculated by the credit-reporting agency Experian using information on how much you have borrowed, the number of accounts you have, and your repayment history. Credit scores don't reflect the true financial condition of consumers.
Lowest average credit score is in Mississippi
According to the Experian 2020 Consumer Credit Review, the average credit score in the U.S. hit 710 last year. These scores were unprecedentedly high in most states. Minnesota, with its credit score of 739, topped the list last year for the ninth straight year. Mississippi residents have the lowest average credit score among all states at 675. The state's average credit score has increased by eight points in the past year, but it is still considered "fair".
In 2010, the US average credit score was 703 and in 2020 it will be 711. The lowest credit scores were recorded in Mississippi for consumers 60 years and older. For those in their twenties, the average credit score was 662.
Millennials have the lowest credit score
Although millennials make up the largest generation, many struggle to build credit. The average millennial FICO score was 698 in Minnesota, three points lower than the national average of 701. This generation is still reeling from the Great Recession and student loans are heavily weighing on their minds. Many of these millennials won't be able to reach the financial goals they set for themselves without credit.
Experian recently released numbers about the credit habits that millennials have in each state. The data shows that millennials have the lowest average credit score, while states with the largest proportion of older Americans had the highest scores. However, the data for the Millennials is not all bad. Experian found that millennials' credit scores have increased by 3% in the past five years. Despite the general trend, credit scores of millennials in certain states have outperformed those nationally. Michigan millennials saw a 3.4%-22 point increase, one of seven states with a threefold percentage increase. Wisconsin, Washington, Oregon and Oregon were the top five states with highest credit scores during this five-year span.