A person’s credit score is one of the biggest factors that determines the course of their financial life, from getting credit cards to qualifying for home loans to even renting apartments. The average credit score in the U.S. is 680. That puts the average American slightly below the bottom of the good credit range. The number to strive for is at least 750, which marks the beginning of the excellent credit range.
This year, the COVID-19 pandemic has wreaked havoc on people’s finances, leading many people to need to take out loans or fall behind on their payments. While the government has taken some steps to protect people’s credit scores, such as offering forbearance on federally- or GSE-backed mortgages, not everyone can take advantage of relief.
In order to determine the states with the highest and lowest credit scores, WalletHub compared the average credit scores of residents in each of the 50 states as of September 2020, based on TransUnion data. Read on for the results, additional commentary from a panel of experts and a full description of our methodology.
Main Findings
States with the Highest & Lowest Credit Scores
| Rank (1=Highest) | State | Average Credit Score |
|---|---|---|
| 1 | Minnesota | 720 |
| 2 | Hawaii | 709 |
| 3 | Washington | 709 |
| 4 | North Dakota | 709 |
| 5 | South Dakota | 707 |
| 6 | Oregon | 707 |
| 7 | Montana | 706 |
| 8 | Massachusetts | 705 |
| 9 | Nebraska | 704 |
| 10 | New Hampshire | 703 |
| 11 | Colorado | 703 |
| 12 | Vermont | 701 |
| 13 | Idaho | 701 |
| 14 | Iowa | 700 |
| 15 | Utah | 696 |
| 16 | Virginia | 695 |
| 17 | California | 692 |
| 18 | Wyoming | 692 |
| 19 | Connecticut | 692 |
| 20 | Pennsylvania | 691 |
| 21 | New York | 691 |
| 22 | Wisconsin | 690 |
| 23 | Kansas | 689 |
| 24 | Maine | 689 |
| 25 | New Jersey | 689 |
| 26 | Alaska | 687 |
| 27 | Nevada | 687 |
| 28 | Delaware | 686 |
| 29 | Maryland | 686 |
| 30 | Illinois | 686 |
| 31 | Missouri | 684 |
| 32 | Arizona | 684 |
| 33 | Rhode Island | 683 |
| 34 | North Carolina | 679 |
| 35 | Michigan | 677 |
| 36 | Indiana | 677 |
| 37 | Ohio | 677 |
| 38 | Florida | 677 |
| 39 | New Mexico | 675 |
| 40 | Tennessee | 674 |
| 41 | West Virginia | 673 |
| 42 | Arkansas | 673 |
| 43 | Oklahoma | 672 |
| 44 | South Carolina | 671 |
| 45 | Kentucky | 671 |
| 46 | Georgia | 670 |
| 47 | Texas | 669 |
| 48 | Louisiana | 664 |
| 49 | Alabama | 662 |
| 50 | Mississippi | 657 |
Ask the Experts
Building and maintaining a solid credit score is essential. In order to provide more insight on the credit-building process, WalletHub turned to a panel of experts. Click on the pictures of the experts below to read their bios and responses to the following key questions:
- What are the best ways to build credit?
- What are the most common misconceptions about credit scores?
- What are the best strategies people can use to minimize the impact of the pandemic on their credit scores?
- What are the most common mistakes to avoid when trying to improve your credit score?
Ask the Experts
- Philip Gibson
Ph.D., CFP® – Associate Professor of Finance – Winthrop University, College of Business Administration
Read More
- W.H. (Joe) Knight
Distinguished Academic in Residence – Seattle University School of Law
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- Lauren E. Willis
Associate Dean for Research, Professor of Law, William M. Rains Fellow – Loyola Marymount University
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- Linda Simpson
Ph.D., CFCS, CPFFE, Professor, Department of Human Services and Community Leadership, Eastern Illinois University
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- Bradley Allen Stevenson
Associate Professor of Finance – Bellarmine University
Read More
- Patrick A. Cozza
Executive in Residence and Lecturer, Wealth Management, Silberman College of Business, Fairleigh Dickinson University
Read More
Methodology
In order to identify the states with the highest and lowest credit scores, WalletHub compared the average credit scores of residents in each of the 50 states as of September 2020, based on TransUnion data. A rank of “1” corresponds with the state with the highest credit score.