The Top Best States for Credit Scores
Having a high credit score is extremely important in today’s financial world and is used by dozens of industries to determine whether you’re a risk to them or not. Credit scores are checked for hiring, renting, buying, and dating.
We all understand how important credit scores are, and while where you live isn’t necessarily going to affect your credit score, we’ve decided to put together a list of the top states with the best and worst credit scores below.
While it’s unlikely that any location will directly impact your credit score, you may want to consider that in some cities, the average household is more financially stable than others. If we look at the city with the highest average credit score, for instance, Minneapolis-St. Paul has an average median income of almost $70,000 per year, whereas a city like Shreveport, with a much lower average credit score, has a median income of only $42,157. So, it’s possible that the higher income directly affected the credit scores as card holders were more financially stable.
A good credit score is a sign of healthy money management — it’s also necessary if you want to afford many of life’s necessities. For example, if you buy a home this spring, a higher credit score will get you a lower mortgage, saving you money. The same is true for car loans; a higher credit score can get you a lower APR on your auto loan.
While a credit score can determine which financial products you have access to, the score itself can be heavily influenced by where you live, finds a new study from CreditRepairEnforcers.com. Using Experian data on local credit scores, CreditRepairEnforcers.com calculated the average credit score by the state to find the 10 states where people have the best credit scores — and the 10 with the worst credit.
10 States With the Best Credit Scores
What is a good credit score? Credit score ranges are typically between 300 and 850, and the 10 states with the best credit scores all have 690 or above, comfortably in the excellent credit range. With good credit scores in this range, residents of these states will find it easier to qualify for loans and get lower interest rates and other favorable terms.
Living in the Midwest makes you more likely to have a higher credit score. Six of the 10 states with the highest average credit scores are in the Midwest. The states with higher credit scores also tend to have lower rates of debt delinquency (debts that are past due or possibly in collections).
These behaviors show residents are more likely to have lower credit utilization ratios and histories of on-time payments, which are major factors that boost credit scores.
You must check your credit score and credit report if you want a perfect credit score or the highest one possible. You can get your free credit report online by visiting AnnualCreditReport.com. Getting a free credit score, however, might be a bit trickier. In most cases, you will likely have to pay a small fee to one of the three credit bureaus — TransUnion, Experian, or Equifax — to receive your credit score.
Methodology: To generate average credit scores by state, CreditRepairEnforcers.com sourced average credit scores for 213 U.S. cities reported by Experian in its 2015 State of Credit report. These credit scores by the city were grouped by state. CreditRepairEnforcers.com then averaged all cities’ credit scores reported in each state, including the District of Columbia but excluding Delaware and New Hampshire, for which no city credit scores were reported. These credit score averages were ordered from highest to lowest to find the states with the best and worst credit scores.
Credit score and open credit card data are from Experian. We analyzed 143 of the largest U.S. metropolitan areas.
Get the benefits and experience of a firm that concentrates on helping people with credit problems without paying huge setup fees. Credit Repair Enforcers has successfully removed erroneous, unverifiable, outdated, and inaccurate information from our client’s three credit reports for over 20+ years. We assist with all things credit repair and credit building. We have helped people who need assistance with personal, business, and corporate credit repair and credit building. Credit Repair Enforcers fight for your credit rights!
Credit Repair Enforcers fight for your credit rights!