Credit scores vary across the United States. However on the whole, most people are doing reasonably well with earning good credit. In fact, the nationwide average score is 714, according to The Motley Fool Ascent’s research.
This is within the “good” credit classification, so most people with scores around the average should be able to qualify for credit cards and loans at reasonable rates.
In some states, however, residents are beating the average — and sometimes by a lot. Let’s take a look at which five states have the highest average credit scores and how those compare to the national average.
Here are the states with the highest average credit scores
Based on The Motley Fool Ascent’s research, here are the states with the highest average credit scores.
| State | Average credit score |
|---|---|
| Minnesota | 742 |
| Vermont | 736 |
| Washington | 735 |
| Wisconsin | 735 |
| New Hampshire | 734 |
Data source: The Motley Fool Ascent.
In each of these states, the average credit score is well above the national average score of 714. In fact, in the case of Minnesota, the average is 28 points higher. That makes a big difference, especially as scores of 740 or higher cross over from the “good” classification” to the “very good” classification.
Two of these states are in New England and two are in the Midwest. Each of these regions has a relatively strong economy, which could help to explain why residents tend to fare better than the nation on the whole when it comes to their credit.
What helps you earn a good credit score?
Where you live and how much money you earn should not impact your credit score, as these factors aren’t part of the formula that’s used to assign your credit rating. So, if you don’t happen to live in one of these states where residents tend to have good credit, you can still earn a stellar score.
You just need to understand the kinds of things that will boost your credit and do as many of them as possible. Behaviors that can lead to a good credit score include:
- Paying bills on time. Payment history is the most heavily weighted factor in the credit scoring formula
- Keeping your credit utilization ratio down. You can find your ratio by dividing the amount of credit you’ve used by the amount available. A ratio below 30% is best. This is the second most important factor in the FICO® Score formula, so try to keep your ratio as low as possible.
- Having a mix of different kinds of credit. You’ll earn a higher score if you have different kinds of debt, such as a mortgage and credit cards or a personal loan and credit cards, rather than if you have just one type of debt.
- Keeping your accounts open for a long time. Credit age is an important factor in your score, and a longer credit age is better than a shorter one.
- Not requesting to borrow too much at once. Each request for credit results in an inquiry on your credit record, and too many inquiries lowers your score.
By taking these steps, you can work on improving your own credit score. If your state isn’t already on this list of the five with the highest scores, you can do your part to bring that average up. Plus (more importantly), having a higher credit score can open the door for more affordable borrowing options.
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