Statistics on Average Credit Score by State in 2024

You’ve probably been asked a few times about your FICO score when filing an application for an apartment, auto loan, or even when buying a cellphone from your provider. Do you know your credit score and whether it’s above or below the average for your state? These statistics on average credit score by state will tell you.

According to Experian, in 2020, the average credit score in America was 711. The data is based on the FICO score and shows credit scores ranging from 300 to 850. Having a higher credit score is better than having a low credit score, as you can imagine.

Your credit score shows you how likely it is for you to get a loan.

We’ve prepared some average credit score stats for you to go through.

Credit Score Statistics – Editor’s Choice

• In the US, the average FICO score for consumers in 2019 was 703.
• In 2020, the average credit score in the US was 711.
• In Arkansas and Mississippi, the average credit utilization rates were 36% and 35%, respectively, in 2019.
• The lowest average score in 2020 was 667 in Mississippi.
• The highest credit score in 2020 was 733 in Minnesota.
• In 2020, the average score required for buying a car was 660.

What Is a Credit Score?

A credit score is based on an individual’s credit file analysis and shows an individual’s creditworthiness. The higher your score is, the better chances you have of taking a loan.

A credit score is mainly based on a credit report, which can be obtained from credit bureaus. The length of your credit history, your payment history, and the amount of debt are also taken into consideration.

Banks and credit card companies use credit scores to assess whether lending money to a potential client is a risk or not. Lenders use a credit score to figure out who qualifies for a loan and to determine their credit limits, which can always be raised, and interest rates. Besides banks, other organizations such as insurance companies, landlords, government apartments, and mobile companies use a credit score to determine your eligibility for various services.

If you were wondering what is the highest FICO score, below we outlined the FICO score range:

• Poor: 300 to 579
• Fair: 580 to 669
• Good: 670 to 739
• Very good: 740 to 799
• Excellent: 800 to 850

So, what is a bad credit score? In short, it is any three-digit number below 670.

The FICO credit score model takes into consideration the following five factors:

• Payment history
• Amounts owed
• Length of credit history
• New credit
• Credit mix

Individuals that represent a risk to lenders are called subprime borrowers because they usually have a score of less than 670 and possibly some negative details in their credit report. They can obtain loans, but at higher interest rates because of the risk that they pose to lenders. If you have this problem as well, getting one of the bad credit loans with guaranteed approval could be the solution.

On the other hand, people who have a credit score higher than 670 have good credit. When obtaining loans, they can get a lower interest rate.

There are different types of scoring models. Some of them use other data like income, for instance.

The FICO score is most commonly used, but in this text, we will have some tables that show VantageScore.

VantageScore is a consumer credit scoring model, and it was created by three credit bureaus: TransUnion, Experian, and Equifax.

VantageScore categories:

• 720 or more – excellent
• 660 – 719 – fair
• 620 – 659 – poor
• 620 or lower – bad

Average Credit Score by State

Here we will take a look at what state has the highest credit score and which one has the lowest score.

1. According to TransUnion, in 2020, the lowest average score was 667 in Mississippi, and the highest average score was 733 in Minnesota.

(WalletHub)

Experian’s data shows that these states have the highest/lowest credit score increase in one year.

2. In 2020, consumers in Arizona experienced an increase in credit scores by 10 points compared to 2019, while North Dakota by only three.

(Experian)

What is the average credit score by state? In the table below, you’ll see the national average credit scores for each state in 2020 and 2019, and how much they changed over the years.

Source: CNBC/ Experian

It is an assumption that states like Vermont, New Hampshire, and South Dakota have higher scores because they have a smaller population than other states.

According to Rod Griffin, an Experian employee, states with the highest average score appear to have a lower credit utilization. In contrast, states with lower credit scores have a higher rate of credit utilization.

Top 10 States With the Highest Average Credit Score

States with the highest credit score in 2020:

Source: Credit Cards/Experian

Top 10 States With the Lowest Average Credit Score

Now take a look at the states with the lowest credit score in 2020.

Source: Credit Cards/Experian

Top 10 Countries With the Highest Average Credit Score

There isn’t a credit score like the FICO score or VantageScore in other countries, but a credit rating is used instead.

In countries outside of the US, there are ratings such as AAA which is the best, then AA, and A.

3. The country with the highest credit rating in 2020 is Canada.

(TradingEconomics)

In the table below, you’ll find more countries that have the highest credit rating.

Source: TradingEconomics

Top 10 Countries With the Lowest Average Credit Score

In this part, we’re going to see which countries in the world have the lowest credit rating.

After AAA,AA, and A, the next credit rating category is BBB, BB+, BB-, and BB. The lowest credit rating is CC, then CCC, and CCC+.

4. In 2020, Belize was the country with the lowest credit rating.

(TradingEconomics)

Credit Score Statistics

What is the average credit score in America in 2020? To find out, take a look at how the average score has been increasing from 2005 to 2020.

5. In 2005, the average US credit score was 688, while in 2020, it was 711.

(Statista, BusinessInsider)

The following statistic will tell us more about the number of people with delinquencies in 2020.

6. In 2020, the percentage of consumers with severe delinquencies in the last six months decreased from 8.1% in January to 7.3% in July, even with so many people who have lost their jobs during the pandemic.

(CreditCards)

In spite of the fact that so many people lost their jobs during the pandemic, the number of people with delinquencies has decreased. We can only wait and see how the situation will evolve in 2021.

How many credit cards do you have? According to Experian’s research:

7. In 2020, the average number of credit cards was three.

(CreditCards)

In case you have a credit score below good and you need one more card, try looking into credit cards for fair credit.

The next statistic will tell us which states had the highest average credit utilization rates.

8. In Arkansas and Mississippi, the average credit utilization rates were 36% and 35%, respectively, in 2019.

(CNBC, Statista)

Let’s take a look at the average credit score by age in the United States.

Source: Experian

Next, you’ll find out the consumers’ average Fico score.

9. In 2019, in the United States, the average credit score for consumers was 703.

(Statista)

In the same year, consumers aged 60+ had an average score of 749, while individuals in their twenties had 662.

If you were planning on buying a car, the next statistic will come in handy.

10. At the beginning of 2020, the average American credit score required for buying a car was 660.

(Statista)

This number is slowly rising, having in mind that in 2015 the average score required for buying a car was 642. But even if you have a bad credit score, there are still car dealerships willing to meet your needs.

When it comes to cities, let’s see which city in the US has the best credit score.

11. In 2019, The Villages, Florida, had the highest median score of 785.

(Statista)

How to Improve Your Credit Score?

By now you’ve learned what the average credit score in America is. But do you know your credit score? If not, perhaps you should request a credit report and find out. Also, try to get information on what factors are affecting your credit score. Once you find out about the factors, it will be easier to make a change and fix your credit score.

As we already said, many factors play a role, but your payment history and credit utilization ratio are the most important ones. To help you, we prepared some tips on how to fix your credit score if it’s poor.

Paying Bills on Time

When you ask lenders to borrow your money, they will first review your credit report and your credit score. Namely, they want to see your past payment performance as it is a good way to predict future performance.

You can influence your credit score positively by paying bills on time every month. If you pay a debt late, especially a revolving one, it can have a negative effect on your credit score. The same goes for any loans, phone bills, utilities, rent, etc. If you sometimes forget to pay your bills on time, try using reminders or automatic payments so you can cross this problem from your list.

Hold On to Your Old Credit Accounts

Contrary to the common credit repair myth, if you have open unused credit cards, don’t close them since this can increase your credit utilization ratio. Having fewer open accounts can lower your credit score. So, if you want to have a high credit score, don’t close any account even if you’re not using it.

Other Things You Can Try

Have you thought about how many people in the US have bad credit? Apparently, there are 68 million people in the US who have a bad or poor credit score. But having a bad credit score is not fatal, because individuals who have bad credit scores can obtain personal loans for bad credit in numerous banks.

It’s also worth checking banks that don’t use ChexSystems as they might have more understanding for people who, for some reason, have low credit scores.

If you don’t have a credit history or have poor or bad credit, credit builder loans can help you create a history of trustworthy financial behavior. This kind of loan isn’t like usual loans.

Once you apply, a lender will put the loan amount you said you want into a savings account. You’ll be sending payments into that account, and after the loan term is over, the lender will give you back the entire balance. By using a credit-builder loan, you’ll build your credit score and save money, so it’s a win-win situation. We hope that more people do it and improve the average credit score by state – in every state!