Credit Trends

Credit Scores By State

While the average credit score in the United States is 664, the average credit score in states can vary considerably.

We thought it would be fun to share some interesting tidbits of information that shine through as we look at credit scores across the states. These credit score facts are based on information compiled from a large database of credit scores in the United States. This means the term national average credit score and average US credit score can be used interchangeably.

From the Credit Karma database, we know the following facts about credit scores by states for this month:

Comments

(72 Total Comments)

I have been divorced from my first wife for more than 6 years. Our mortgage was a va loan in my name I singed over the deed of trust to her and she continues to make payments. This mortgage is still on my credit report is there a way to get it off??? She does not have an outside job and would probably not qualify for a new mortgage by her self!!"

buster22704 at 11:34 am Mar 11

In order to get off a mortgage, you have to pay it off through refi or cash."

minibass1978 at 1:11 pm Mar 13

Since there's a moderator who seems to be answering questions, I have one: Why is Total Accounts even relevant? I cannot conceive of having 41 accounts to get an A score! Keeping track of that number would be a nightmare, not to mention the much greater exposure to identity theft.

I have 6 total accounts, 3 active and 3 closed, and get an F for Total Accounts even though I have 3 As and a B (Average Age of Open Credit Lines) in the other 4 categories for an overall score of B.

This criteria doesn't make sense to me, and I'm surprised it's weighted just as high as the others (like Percent of On-Time Payments)."

btippett at 2:08 pm Mar 10

Total accounts shows the breadth of your credit experience. More credit experience is viewed as a better risk by lenders. With that said, we will be modifying our grades to make this more clear to our users. Thank you for the comment as we are always trying to make the site better.

CK Moderator

I concur. And I wonder how they measured credit worthiness before the seventies prior to when the credit card industry mushroomed. As the credit card industry grew, bank institutions had to find a credit reporting agency that would REFLECT THE NEED'S OF THE FINANCIAL INDUSTRY. The fact that you need a network bank card to increase your credit score demonstrate just how much influence the banking industry has upon the credit reproting industry. The fact that the burden of proof relies upon the consumer to get their credit report corrected, demonstrates to be who has the influence in this industry. There needs to be more parity in creating the rules."

JohnHoer at 8:49 am Mar 10

Absolutely. It has also bothered me why the burden of proof rests with the end consumer. Banks and creditors do not have supply signatures, loan documents, or credit agreements. It makes no sense. The whole electronic verification process or E Oscar is one of the worst ideas ever thought up. So long as the information in the database matches your account will be verified. The fact that the account may not even be yours makes no difference."

quahog at 1:57 pm Mar 15

It appears to me that the map indicates that there is a continued disparity between states that have historically been disadvantaged such as Appalachia and the deep south. And the states that have been historically the industrial parts of the country are also lower, due to a delcining rate of manufacturing for the last three decades. I don't think this a reflection on the character of the people in these states. I think it reflects the economy and economic opportunities for the people.

It appears that the states with the highest credit scores are those that havethe fanancial and tech sector as the base for their economy. That is where the economic growth has been in the last thrity years.

It's kind of like when the professor asked the pick-pocket in My Fair Lady" why he steals. He replied that he couldn't afford middle class values.

I purport that the entire credit repoting industry is closely associated with the financial sector of the economy. And consequently, it's methodoly in the data it collects, compiles and sells reflects the values with that industry.

Perhaps the credit scores will eventually reflect the hit that the financial industry has taken in this country and the areas of the country where that industry is located. The map update indicates that there is a recent substantial decrease in credit scores in these areas. Perhpas the population in these areas won't be able to afford middle class values as they did previously.

I'm interested in seeing how the changes in the economy will continue to be reflected in the credit reporting industry. What is now a fair credit score is looking more like the average. Was it measured by the mean, medium or average score? Will it be reflected the same way in the near future?"

JohnHoer at 8:31 am Mar 10

According to the credit scores by state, it appears the national average credit score has significantly decreased this month. My score is now above the avergage for every state and Washington D.C.. Last month, their was only three sates whose average score was above mine. If credit scores in general are decreasing, isn't this going to impact the decisions of lenders, good or bad?"

JohnHoer at 5:07 am Mar 10

The coasts boast more industrious and educated citizens...thus the better scores."

jsocha at 12:08 pm Mar 7

Or, perhaps the people on the coasts are more likely to overextend themselves with credit for everything, whereas people like me who live in the permanent recession economy of the western heartland don't count on having a means of repaying debt (and probably we feel more obligated to repay our debts, too.) Poor people like me get zapped on our credit for the reasons mentioned above: we don't get excessive numbers of accounts."

sean1303 at 4:44 pm Mar 10

How frequently are the credit scores by states updated? What has been the credit score trends since the onset of the banking crisis in 2008? If the trend is significantlyt downward, then the average score is decreasing. If so, how would that impact someones credit score that has remained the same? In the grand scheme of credit reporting, wouldn't that be problematic for lenders, borrowers and credit reporting agencies?"

JohnHoer at 8:04 am Mar 7

Scores are updated monthly. Since the bank crisis, credit scores have remained fairly stable. There is clearly the bad economy effect but as a whole consumers are taking on less debt bringing up the overall average.

CK Moderator

For the moderator: What kinds of accounts do you count for "number of accounts? I was trying to figure out which accounts you are counting (checking/savings, utility bill, credit cards, loans, etc)."

lovliermissl at 6:57 pm Mar 6

We count accounts on your credit report. In your question, checking and utilities do not count since they are not on your credit report. I will point out check and utility collections can be on your credit report if you are not in good standing.

CK Moderator

To be quite honest the national variation of averages of between 620 to 670 is not much (50 points) and the differnces between the states and is not significat enough to draw any meaningful conclusions. The only conclusion I am drawing is that the credit score of the US has little variation on average and is on the low side. Thank you CK for your effort.

To put this in perspective I could come close to dropping my score 50 points with a few late pays."

MSJ7 at 5:47 pm Mar 5

A study by the CFA concluded consumers would save $28B a year in credit card interest alone if everyone raised their credit by just 30 points.

CK Moderator

I think the CFA is full of it, then. If ALL consumers raised their scores by 30 points, then the banks would raise their bars for their various levels of gouging, or the three monkeys of credit reporting would change their formulas to bring us all back down again!

sean1303 at 4:38 pm Mar 10

To your point, credit score scales are arbitrary. With that said, a score is an indicator of risk. Bank are good at pricing to risk so the CFA piece does have a point.

CK Moderator

Experian has updated my account balances to refect the correct lower balances upon dispute. But, Trans Union responded that the balances were correct and will remain. So, my Trans Union report continues to reflect some of the incorrect higher balances. My credit score with Experian also increased after they corrected the balances. This is delaying my intentions to apply for a refinance."

JohnHoer at 7:10 pm Mar 4