Average Credit Score by State (2024)

Bear in mind that creditors may define their own ranges, thus making it possible for an individual to technically have more than one credit score. The ranges seen above, however, are the ones most frequently utilized due to the market domination of the FICO score model.

Why FICO?

A FICO score is a specific credit score that was created by the Fair Isaac Corporation (FICO) in 1989. Considering that FICO scores factor into more than 90% of the credit decisions made in the U.S., they are the ideal figure for assessing the financial health of a given area.

FICO scores consider payment history, current level of indebtedness, types of credit used, length of credit history, and new credit accounts when determining creditworthiness. This offers multiple methods for explaining why certain states have credit scores that are lower or higher than those of their neighbors.

According to our research, the FICO Score national averagewas 714 in 2021. This represents an increase of four points from 2020 and constitutes the fourth consecutive year scores have gone up.

Note that FICO isn't the only name in the game. Created in 2006 by the top three credit bureaus, VantageScore is a consumer credit rating product that serves as an alternative to the FICO score. Despite claiming to be more accurate than other models due to its advanced algorithms and machine learning techniques, FICO's widespread acceptance makes it a better candidate for the purposes of this article.

State-by-State Breakdown

FICO scores

As of 2021, Minnesota had the highest average FICO score, with Vermont, Wisconsin, New Hampshire, Washington, and North Dakota close behind it. Maine, Mississippi, and Nevada grew the most from 2020 at six points each, while 12 states all grew by five.

Notably, the majority of states with the greatest average credit score improvements were relatively close in 2020 to the current national average. Additionally, even the states with the highest average credit scores are still in the "Good" category with the exception of Minnesota, which is two points above the "Very Good" threshold.

The state with the single lowest average FICO score was Mississippi. The next lowest was Louisiana, followed by other neighboring states, including Alabama, Oklahoma, Texas, and Georgia. Interestingly, both Oklahoma and the high-scoring state of South Dakota grew the least from 2020, at two points each. Behind these two were 11 states that grew by just three points, the majority of which started with scores over 720.

On a somewhat encouraging note, no state has an average credit score below the "Good" category, though this doesn't indicate that a state's typical residents are financially secure.

FICO and household income

As reported in 2018 by the Board of Governors of the Federal Reserve System, there was a moderate correlation between household income and consumer credit scores. This would suggest that rising income inequality could lead to widening disparities in credit access. It's no coincidence that credit scores tend to be lower in the Southern portion of the U.S. In 2019, the U.S. Census Bureau found that 75% of the top eight poorest states in the U.S. were located in the South.

Mississippi is particularly noteworthy in this regard; as of 2019, the Magnolia State had both the lowest median income and the highest poverty rate in the U.S.

FICO and credit card debt

Average credit card debt is another figure that is useful for approximating a consumer's individual financial circ*mstances within a given state, though it doesn't conclusively correlate with average credit scores, despite providing insight into how much of one particular form of debt a typical individual is carrying.

The Bottom Line

It's important to keep in mind that the economic conditions of the state in which you're living don't inherently determine what your credit score will be—it's your responsibility. Averages are calculated by adding together all of the values in a given dataset and then dividing by the amount of numbers there are. While it's possible that most of the values will be relatively close to each other, outliers can exist.

In order to end up on the higher end of the credit score scale, make sure to continue paying down your debts, avoid late payments, and try to maintain as small a balance as possible on any credit accounts you may have.