What is the Average Credit Score by State?

What Is a Good Credit Score?

A good credit score generally falls within the range of 670 and above, according to credit scoring company FICO. This indicates that you are considered a dependable borrower and are likely to receive decent interest rates from lenders. 

The national average credit score sits at 715, according to Experian data. That’s slightly up from 714 in 2022, reflecting a generally good score for most borrowers.

Understanding these credit score ranges empowers you to make informed financial decisions and work towards improving your credit health. By maintaining a good credit score, you increase your chances of securing lower interest rates on loans and having better access to financial products, according to the Consumer Financial Protection Bureau (CFPB).

Average Credit Score by State

After analyzing Experian data on the average credit score by state, we found that Southern states tend to have lower credit scores overall. Research from The Commonwealth Fund indicates that one reason that Southerners often have lower credit scores is due to larger amounts of medical debt, as many live in states without expanded Medicaid programs.

Southern states also have higher poverty rates. Mississippi, with the lowest average credit score in the nation (680), has a poverty rate of 19.2%. Comparatively, Minnesota, which has the highest average credit score (742), has a poverty rate of just 9.6%.

Income level also correlates with credit scores. Research from the U.S. Census Bureau shows that median income varies by region. The median household income is higher for households in the West and Northeast than it is for those in the Midwest and South. For example, the 2022 median household income for the Northeast was $80,360 whereas the South’s was $68,230 — a 16% difference. You see the same pattern in the credit score by state data.

States with the highest credit scores

The states with the top five credit scores are Minnesota (742), Vermont (737), Wisconsin (737), New Hampshire (736), and Washington (735). Notably, the leading states are primarily located in the northern United States, with Washington representing the Pacific Northwest region.

Minnesota stands out as the sole state with a credit rating categorized as “very good,” falling within the range of 740 to 799. 

These higher credit scores often translate to lower interest rates for loans, as they indicate a lower risk for lenders. In turn, Americans with higher credit scores often pay less over the course of their loan repayment than those with lower credit scores.

States with the lowest credit scores

Mississippi holds the lowest average credit score at 680, which is 5% below the national average of 715. Rounding out the bottom five states are Louisiana (690), Alabama, (692), Texas (695), and Georgia (695).

These states may have low scores, but many of them are improving their scores from last year, while many of the top states have scores that are unchanged. Louisiana, Alabama, and Georgia all increased their scores by one point, and Texas increased its score by two points. Other low-scoring states, like Kentucky, Tennessee, West Virginia, New Mexico, South Carolina and Oklahoma, raised their scores by three points.  

Despite falling within the “good” range of 670 to 739, these scores signify higher risk for lenders. While income does not directly determine credit scores, it can influence one’s ability to repay debts on time and affect credit utilization.

Notably, Alabama, Louisiana and Mississippi have among the lowest average incomes nationwide. Lower credit scores result in higher interest rates on loans, potentially leading to significant additional costs over time. This causes additional stress for Americans who are already living with lower incomes.

How to Improve Your Credit Score

If you have a low credit score, improving it can help you secure favorable financial opportunities. Here are some tips to enhance your creditworthiness, according to the CFPB:

• Maintain timely payments: Consistently pay bills and debts on time, as payment history is a key factor in credit scoring.
• Minimize unnecessary inquiries: Every time you apply for a loan, you receive a “credit inquiry” on your credit report, and your score temporarily declines. Avoid unnecessary credit inquiries, such as applying for loans or credit cards you don’t genuinely need, to preserve your creditworthiness.
• Ensure visibility of rent and utility payments: Request that your rent and utility payments be reported to credit bureaus to provide a more comprehensive picture of your financial responsibility to potential lenders.
• Consider investing in certificates of deposit (CDs): Invest in CDs to potentially generate higher returns, which can be used to pay off existing debts and improve credit health. Make sure to research banks for the best CD rates before making a decision.

Average Credit Score by State (Full Data)

Methodology

The MarketWatch Guides research team found the average FICO credit score by state from Experian’s 2023 Consumer Credit Review.

• Savings and money market accounts (35% of total score): The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.
• Checking accounts (30% of total score): High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.
• Certificates of deposit (20% of total score): Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.
• Banking experience and access (15% of total score): Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.