The average credit score of each state varies. The state with the highest average credit score is Minnesota. Mississippi is the one with the 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 the lowest credit scores.
Minnesota has the highest credit score
Minnesota is home to the nation's highest average credit score. It beats the national average 34 points. Minnesota's high credit scores are due to a healthy economy, relatively low unemployment rates, stable housing prices, conservative debt management, and a stable environment. Minnesota residents can expect to see an increase in credit scores in the coming year. Many credit card companies will be willing to offer lower interest rates for residents with solid credit ratings.
The average credit score can vary greatly from one state to another. Minnesota has the highest average, and Mississippi has the lowest. Experian, a credit-reporting agency, calculates credit scores by analyzing information such as how much you've borrowed, your repayment history, and the accounts you have. Credit scores do not reflect the true financial health of individual consumers.
Mississippi has the lowest average credit score
According to Experian 2020 Consumer credit Review, the average credit score for the United States was 710. 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 has the lowest credit score, with 675. 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 in the U.S. was 703; in 2020, it will be 711. Mississippi's average credit score was the lowest for those 60+. For those in their twenties and beyond, the average credit score stood at 662.
Millennials have the lowest credit score
Although the largest generation in America, millennials have the most credit problems. Minnesota's FICO score average for millennials was 698. That is three percentage points lower than its national average of 701. This generation is largely still suffering from the Great Recession, and their student loans are weighing heavily on their minds. Many of these millennials are unlikely to be able attain the financial milestones that they have set.
Experian recently released data about the credit habits of millennials within each state. 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 good news is that the data for millennials is not all negative. 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 significant improvement of 3.4%-22 Points, which was one the seven states that experienced a three-digit percentage gain. Over the five-year period, Oregon, Washington, and Wisconsin were the top five states that saw credit scores improve.