The average credit score in 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 credit score of 670-739 is considered acceptable. Millennials have lower credit scores.
Highest average credit score is in Minnesota
Minnesota has the highest national average credit score of 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 a rise in their credit scores over the next year. Credit card companies will offer lower interest rates to those with good credit scores.
There are many states with different credit scores. Minnesota has a high average credit score and Mississippi has a low average credit score. 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 status of consumers.
Lowest average credit score is in Mississippi
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 residents have 675 credit scores, which is the lowest of any state. The average score is up eight points from last year but the state remains 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
While Millennials are the largest generation of Americans, they struggle with credit building. The average millennial FICO score was 698 in Minnesota, three points lower than the national average of 701. This generation is still feeling the effects of the Great Recession. They are struggling to pay off student loans. Many of these young people will not be able credit to meet their financial goals.
Experian recently released figures about the credit habits of millennials in 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. However, data for the Millennials aren't all bad. Experian research shows that millennials credit scores have increased by 3.3% since 2015. The national average credit score has not increased by 3% since 2015. This is despite the overall trend. For instance, Michigan millennials saw a significant increase of 3.4%-22 points, which was one of only seven states to see a three-digit percentage increase. The top five states to improve their credit scores over the five-year period were Wisconsin, Washington, and Oregon.