The average credit score in each state varies. The state with the highest credit score is Minnesota. Mississippi has the lowest. How much credit a person can get is directly related to their income bracket. A score of 670 to 739 can be considered excellent. Millennials have one of the lowest credit scores.
Minnesota has the highest average credit score
Minnesota has the highest national average credit score of 34 points. The reason for Minnesota's high credit score is the healthy economy, relatively low unemployment, stable housing prices, and conservative debt management. Residents in Minnesota can expect to see their credit score rise in the next year or two, as many credit card companies are willing to extend lower interest rates to residents who have solid 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. Experian is a credit reporting agency that calculates credit scores. It uses information like how much money you have borrowed and the number of accounts you own as well as your repayment history. Credit scores don't reflect the true financial condition of consumers.
Mississippi has the lowest credit score
According to the Experian 2020 Consumer Credit Review, the average credit score in the U.S. hit 710 last year. The scores reached a record high across most states. Minnesota topped this list for the ninth year in a row with a credit score (739). Mississippi residents have 675 credit scores, which is the lowest of any state. Although the state's average score has increased 8 points since last years, it still falls in the "fair” category.
In 2010, the average credit score across the U.S. was 703 and it will increase to 711 by 2020. Mississippi residents 60 and over had the lowest average credit scores. For those in their twenties, the average credit score was 662.
The lowest credit score is among millennials
Although the largest generation in America, millennials have the most credit problems. The average millennial FICO score was 698 in Minnesota, three points lower than the national average of 701. This generation is largely still suffering from the Great Recession, and their student loans are weighing heavily on their minds. Without credit, many of these millennials will struggle to achieve the financial milestones they have set for themselves.
Experian recently released statistics about the credit habits millennials in each of their states. According to the data, millennials had the lowest average credit scores, while the highest-scoring states were the ones that were mostly made up of older Americans. The data for the Millennial population, however, isn't all bad. According to the Experian study, millennials' credit scores increased by 3% since 2015. Despite this overall trend, the millennials' credit scores in some states have outperformed the national average. Michigan millennials saw a 3.4%-22 point increase, one of seven states with a threefold percentage increase. Over the five-year period, Oregon, Washington, and Wisconsin were the top five states that saw credit scores improve.