The average FICO credit score in 2022 was 714, and the average VantageScore credit score in August 2023 was 701. However, average credit scores vary widely based on various factors, such as age, income, immigration status, and even race.
Credit scores can differ greatly based on location. The average FICO credit score in Minnesota is 742, the highest in any state. Mississippi, at 680, is the state with the highest average credit score in the United States.
In 2022, the top 10 states with the highest average credit score are: New York City, New York, and California.
The average VantageScore credit score for July 2023 is as follows:
The top 10 states with the worst average credit score are New York and California.
Credit scores have improved in the past few decades. The average FICO credit score in 2012 was 689 compared to 714 in 2022. But some states still lag behind the national average. In 2022, the states with the lowest average credit score are as follows:
Of the 10 states, only one is located in the South, according to the U.S. Census Bureau. Even at the bottom of the list, the average resident in all these states would have a 'prime' credit score, above 660. The credit score was not always what it is today. The average FICO score in October 2005 was 688 and has been increasing steadily in the past two decades.
You'd think that states with the lowest credit score would have the most debt, though this isn't the case. Mississippi has the second-lowest average credit card debt of any state and the second-lowest average debt among all states.
The top 10 states with the lowest average VantageScore credit scores have similar patterns, mostly consisting of southern states.
FICO defines a range of possible credit scores from 300 to 850, which it categorizes into five levels called risk categories. While lending decisions are not solely based on your credit score or risk category, these tools help determine how likely you are to qualify for a loan or credit card.
The five risk categories and their corresponding ranges are:
The average credit score of49 states is good, with an average credit score of 49 states a good score. The only exception is Minnesota, with a 742 average score, nudging its way into a'very good' average score.
Rebuilding your credit score isn't a process of removing negative information from your credit report, but building positive information on top of your negative information.
Paying on your current credit lines on time and making sure your balance isn't too high should be a top priority. Consult a credit counselor and sign up for debt management plans if your monthly payments pose a problem. Debt management firms can negotiate a lower interest rate with creditors or lower your minimum payment in exchange for longer payment periods.
Credit-building products such as credit builder loans can be found on the market. Credit checks will add payment history to your credit reports and accept your application without a credit check. Rent reporting services will help build your payment history by reporting any rent payments you make to the credit bureaus, which doesn't automatically happen. From here onwards, you can find our guides on the best credit builder loans and the best rental reporting services.
You'll know your financial standing at any given moment by keeping tabs on your credit score, as well as knowing your financial standing in the eyes of creditors. For up to 2023, you can request weekly free credit reports from AnnualCreditReport.com. After 2023, you can request three free credit reports annually, one from each of the credit bureaus.
You can view your credit score online for free with a credit monitoring service. Even free credit protection services are available to individuals with limited credit history.