The average credit score in each state varies. The highest credit score in each state is found in Minnesota. Mississippi has its lowest. A person's income bracket is closely tied to the amount of credit they are able to get. A score of 670 - 739 is considered satisfactory. Millennials have one of the lowest credit scores.
Minnesota has the highest credit score
Minnesota has the highest average credit score and is 34 points higher than the national average. 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 differs greatly from state to state. Minnesota has the highest, while Mississippi has Mississippi's lowest. Experian uses information about how much you borrowed, the number and repayment history of your accounts, to calculate credit scores. Credit scores are not a reflection of the financial health of individuals.
Mississippi has the lowest average credit score
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. Although the state's average score has increased 8 points since last years, it still falls in the "fair” category.
The average credit score for Americans in 2010 was 703; it will reach 711 by 2020. 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.
The lowest credit score is among millennials
Millennials are the largest generation in the country, but many of them struggle to build their credit. Minnesota's average FICO score for millennials was 698, which is three points lower than the national average (701). This generation is still reeling from the Great Recession and student loans are heavily weighing on their minds. Many of these young people will not be able credit to meet their financial goals.
Experian released recent data on the credit habits and spending habits of millennials across 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 data shows that credit scores for millennials increased by 3% between 2015 and 2016. Despite the general trend, credit scores of millennials in certain states have outperformed those nationally. Michigan's millennials saw a significant rise of 3.4%-22 points. It was one in seven states to experience a three-digit percentage growth. The top five states to improve their credit scores over the five-year period were Wisconsin, Washington, and Oregon.