The average credit score for Americans increased three points from last year, according to a new study from Experian. The small increase to an average score of 669 was largely due to fewer late payments on credit cards. But the national score masks a huge disparity from state to state.
Generally, the highest scores are from the Midwest and New England states and the lowest average scores fan out across the South into the Southwest. The difference between the state with the highest score (704) and the lowest score (639) is 65 points, a notable amount.
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“You're likely to be approved for a loan at 704 and get decent terms, but not likely the best terms,” says John Ulzheimer, a credit expert formerly with FICO and Equifax. “At a 639 you're unlikely to get approved, and if you are approved, then you most certainly will be saddled with punitive terms.”
Fortunately, how your state ranks doesn’t have any bearing on how your personal credit score is calculated. Your score depends on your history managing debt.
Here are how the states with the best and worst credit scores:
The 10 States with the Highest Credit Scores:
1. Minnesota -- 704
2. North Dakota -- 697
3. Vermont -- 696 (tied)
3. South Dakota -- 696 (tied)
5. New Hampshire -- 695
6. Massachusetts -- 692 (tied)
6. Iowa -- 692 (tied)
6. Wisconsin -- 692 (tied)
9. Nebraska -- 691
10. Hawaii -- 690
The 10 States with the Lowest Credit Scores:
41. New Mexico -- 653
42. Arkansas -- 652 (tied)
42. South Carolina -- 652 (tied)
42. Oklahoma -- 652 (tied)
45. Texas -- 651 (tied)
45. Alabama -- 651 (tied)
47. Georgia -- 646 (tied)
47. Louisiana -- 646 (tied)
49. Nevada -- 642
50. Mississippi – 639
