There are varying average credit scores in different states. The highest credit score in each state is found in Minnesota. Mississippi has its lowest. It is also related to how much credit an individual can get. In general, a score of 670 to 739 is considered good. Millennials have one of the lowest credit scores.
Minnesota has the highest credit score
Minnesota is the state with the highest average credit score, topping the national average by 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 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 credit score
The average credit score in America was 710 according to Experian 2020 Consumer Credit Reviews. With a credit score in excess of 739, Minnesota topped the list for nine consecutive years. 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.
In 2010, the US average credit score was 703 and in 2020 it will be 711. Mississippi's average credit score was the lowest for those 60+. For people in their twenties the average credit score was 662.
Millennials have the lowest credit score
Although millennials make up the largest generation, many struggle to build credit. Minnesota's millennial average FICO score was 698. This is three points less than the national average of 701. This generation is still struggling from the Great Recession. Their student loans are adding to their stress. Many of these millennials won't be able to reach the financial goals they set for themselves without credit.
Experian recently released figures about the credit habits of millennials in each state. The data showed that millennials had the lowest credit scores and the highest scoring states were those with a large number 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. However, millennials credit scores have been higher than the national average in certain states. The Michigan millennials experienced a notable increase of 3.4%-22 percentage points. This was one of seven states that saw a three-digit percentage rise. The top five states to improve their credit scores over the five-year period were Wisconsin, Washington, and Oregon.