The average credit score of each state varies. The highest credit score in each state is found in Minnesota. Mississippi has its lowest. How much credit a person can get is directly related to their income bracket. A score between 670 and 739 is generally considered to be good. Millennials have one of the lowest credit scores.
Minnesota has the highest average credit score
Minnesota is home to the nation's highest average credit score. It beats the national average 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 their credit score to rise over the next few years, because many credit card companies will extend lower interest rate to residents with better credit scores.
The average credit score is different from one state to the next. However, 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 are not a reflection of the financial health of individuals.
Mississippi is home to the lowest credit score
The Experian 2020 consumer credit review found that the average credit score of the U.S. was 710. The scores were record-high in most states, and Minnesota topped the list for the ninth consecutive year with a credit score of 739. Mississippi residents have the lowest credit score of all states, 675. Although the average score has increased eight points over last year, Mississippi is still considered fair.
The average credit score in the United States was 703 in 2010. It will rise to 711 in 2020. Mississippi's 60-plus population had the lowest credit scores. The average credit score for those in their twenties was 662.
Millennials have the lowest average credit score
While Millennials are the largest generation of Americans, they struggle with credit building. Minnesota's average FICO score for millennials was 698, which is three points lower than the national average (701). This generation is still feeling the effects of the Great Recession. They are struggling to pay off student loans. Without credit, many of these millennials will struggle to achieve the financial milestones they have set for themselves.
Experian recently released figures about the credit habits of millennials 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. But the data on the Millennial population isn't all bad. Experian data shows that credit scores for millennials increased by 3% between 2015 and 2016. However, millennials credit scores have been higher than the national average in certain states. 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.