Each state has a different average credit score. The highest credit score in each state is found in Minnesota. Mississippi has its lowest. A person's income bracket is closely tied to the amount of credit they are able to get. A score of 670 to 739 can be considered excellent. Millennials have the lowest credit scores.
Highest average credit score is in Minnesota
Minnesota is the state with the highest average credit score, topping the national average by 34 points. Minnesota's credit score is high due to its stable economy, relatively low unemployment and prudent debt management. Minnesota residents can expect to see an increase in credit scores in the coming year. Many credit card companies will be willing to offer lower interest rates for residents with solid credit ratings.
The average credit score differs greatly from state to state. Minnesota has the highest, while Mississippi has Mississippi's lowest. Experian calculates credit scores based on information such as how much money has been borrowed, how many accounts you have and what your repayment history is. Credit scores do not reflect the true financial health of individual consumers.
Mississippi is home to the lowest credit score
According to Experian 2020 Consumer credit Review, the average credit score for the United States was 710. These scores were unprecedentedly high in most states. Minnesota, with its credit score of 739, topped the list last year for the ninth straight year. Mississippi residents have 675 credit scores, which is the lowest of any state. The state's average credit score has increased by eight points in the past year, but it is still considered "fair".
In 2010, the US average credit score was 703 and in 2020 it will be 711. Mississippi residents 60 and over had the lowest average credit scores. The average credit score for those in their twenties was 662.
The average credit score of millennials is the lowest
Although the largest generation in America, millennials have the most credit problems. The average millennial FICO score was 698 in Minnesota, three points lower than the national average of 701. This generation is largely still suffering from the Great Recession, and their student loans are weighing heavily on their minds. Many of these millennials are unlikely to be able attain the financial milestones that they have set.
Experian recently released numbers about the credit habits that millennials have in each state. The data revealed that millennials had lower credit scores than older Americans, and that the high-scoring states had more older Americans. However, data for the Millennials aren't all bad. Experian data shows that credit scores for millennials increased by 3% between 2015 and 2016. The national average credit score has not increased by 3% since 2015. This is despite the overall trend. Michigan millennials saw a significant improvement of 3.4%-22 Points, which was one the seven states that experienced a three-digit percentage gain. Wisconsin, Washington and Oregon were the top five states for improving credit scores over the 5-year period.