Your credit score is one of the most significant factors affecting the course of your financial life, from getting credit cards to qualifying for home loans to even renting apartments. The average credit score in the U.S. is 696 using the VantageScore model. That puts the average American just below the bottom of the good credit range (700). The score to ultimately strive for is at least 750, which marks the beginning of the excellent credit range. Residents of some states are already close to that goal, on average, while others have more room for improvement.
States with the Highest Average Credit Scores
- Minnesota (725)
- New Hampshire (722)
- Vermont (721)
- Massachusetts (718)
- Wisconsin (718)
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 October 2023, based on TransUnion data. Read on for the results, commentary from a panel of experts and a full description of our methodology.
Main Findings
States with the Highest & Lowest Credit Scores
Rank* | State | Average Credit Score |
---|---|---|
1 | Minnesota | 725 |
2 | New Hampshire | 722 |
3 | Vermont | 721 |
4 | Massachusetts | 718 |
5 | Wisconsin | 718 |
6 | North Dakota | 717 |
7 | Washington | 717 |
8 | South Dakota | 717 |
9 | Hawaii | 715 |
10 | Montana | 715 |
11 | Colorado | 715 |
12 | Maine | 715 |
13 | Idaho | 715 |
14 | Iowa | 714 |
15 | Nebraska | 714 |
16 | Oregon | 713 |
17 | New Jersey | 712 |
18 | Utah | 711 |
19 | Connecticut | 711 |
20 | Rhode Island | 709 |
21 | Pennsylvania | 708 |
22 | Wyoming | 708 |
23 | Virginia | 707 |
24 | New York | 706 |
25 | Kansas | 706 |
26 | California | 705 |
27 | Alaska | 705 |
28 | Illinois | 704 |
29 | Michigan | 703 |
30 | Delaware | 701 |
31 | Maryland | 701 |
32 | Arizona | 699 |
33 | Ohio | 699 |
34 | Missouri | 698 |
35 | Indiana | 697 |
36 | North Carolina | 696 |
37 | Florida | 695 |
38 | Tennessee | 692 |
39 | New Mexico | 690 |
40 | West Virginia | 688 |
41 | Kentucky | 687 |
42 | South Carolina | 687 |
43 | Nevada | 686 |
44 | Georgia | 682 |
45 | Arkansas | 682 |
46 | Oklahoma | 681 |
47 | Texas | 680 |
48 | Alabama | 680 |
49 | Louisiana | 676 |
50 | Mississippi | 672 |
Note: *No. 1 = Highest
In-Depth Look at the Top States for 2023
Minnesota
Minnesotans have the highest average credit score this year, at 725. The state has a strong economy and good job opportunities, which helps residents to maintain financial stability. Residents of the North Star State also tend to take on less debt than the average American, making it easier to balance their debt and income.
In true “Minnesota nice” fashion, people in the state tend to pay back their debts and avoid collection accounts on their credit histories. Only 9.65% of residents have these derogatory marks on their reports, according to TransUnion.
New Hampshire
Granite Staters have an average credit score of 722, the second-highest score in our study. Residents benefit from having the fifth-highest median income in the country and a lower unemployment rate than most states. Although most New Hampshire residents have some form of debt, according to TransUnion, they seem to have the means to make regular payments and build a strong credit history.
Vermont
The average credit score for Vermonters is the third-highest in the country, at 721. This state typically has a higher median income than others and great job opportunities, leading to a low unemployment rate. While residents of Vermont have accumulated a moderate amount of debt compared to other states, having a population that is largely employed is a positive sign that residents will be able to afford their debt and maintain their positive credit ratings.
Ask the Experts
Building and maintaining a solid credit score is essential for long-term financial well-being. In order to provide more insight into 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 inflation on their credit scores?
- What are the most common mistakes to avoid when trying to improve your credit score?
Ask the Experts
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 October 2023, based on TransUnion data. A rank of “1” corresponds with the state with the highest credit score.
WalletHub experts are widely quoted. Contact our media team to schedule an interview.