The average credit score of each state varies. The highest is in Minnesota, while the lowest is in Mississippi. A person's income bracket is closely tied to the amount of credit they are able to get. A score between 670 and 739 is generally considered to be good. Millennials have one of the lowest credit scores.
Minnesota has the highest credit score
Minnesota is home to the nation's highest average credit score. It beats the national average 34 points. Minnesota's strong credit score is due to the state's healthy economy and relatively low unemployment. It also has stable housing prices and conservative debt control. 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 uses information about how much you borrowed, the number and repayment history of your accounts, to calculate credit scores. Credit scores do not represent the true financial health and well-being of an individual consumer.
Mississippi has the lowest credit score
The Experian 2020 consumer credit review found that the average credit score of the U.S. 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 has the lowest credit score, with 675. Though the average score has gone up eight points since last year, the state is still in the "fair" category.
In 2010, the average credit score across the U.S. was 703 and it will increase to 711 by 2020. Mississippi residents 60 and over had the lowest average credit scores. Average credit scores for people in their twenties were 662.
Millennials have the lowest credit score
The largest generation in the United States is the millennial generation. However, many of these millennials struggle to build credit. Minnesota's average FICO score of 698 was three points lower that 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 data about the credit habits of millennials within each state. According to Experian data, millennials had low credit scores on average, while those states that had the most seniors scored the highest. The data for the Millennial population, however, isn't all bad. According to the Experian study, millennials' credit scores increased by 3% since 2015. The national average credit score has not increased by 3% since 2015. This is despite the overall trend. 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. Over the five-year period, Oregon, Washington, and Wisconsin were the top five states that saw credit scores improve.