Minnesota residents have the highest average credit score—here's how other states compare - CNBC

The average FICO Score in the U.S. hit a record high of 710 last year, according to Experian’s 2020 Consumer Credit Review. And a majority of states (33) managed to achieve or surpass this record high.

Minnesota residents topped the list for the ninth straight year with an average 739 credit score. Meanwhile, Mississippi residents continued to have the lowest credit score of any state (675) — though that’s an eight-point increase from last year (667).

All states experienced a credit score increase ranging from three to 10 points in 2020. That could be due to more on-time payments and lowered spending during a year of economic uncertainty.

Ahead, we give you a quick overview of what a FICO® Score is and reveal the states with the highest and lowest credit scores (jump to credit score by state if you don't need a refresher).

What is a FICO Score?

A high credit score qualifies you for the best interest rates and terms on everything from credit cards to mortgages. FICO Scores are used in over 90% of U.S. lending decisions, making it a must-know number before applying for any financial product.

FICO Scores are broken up into five categories that help lenders gauge your ability to repay loans.

Here are the credit score ranges for each category:

Take action: Check your FICO Score for free

What factors matter for a credit score?

The FICO credit scoring model looks at these five key factors and weighs each differently:

1. Payment history (35%): Whether you’ve paid past credit accounts on time.
2. Amounts owed (30%): The total amount of credit and loans you’re using compared to your total credit limit, also known as your utilization rate.
3. Length of credit history (15%): The length of time you’ve had credit.
4. New credit (10%): How often you apply for and open new accounts.
5. Credit mix (10%): The variety of credit products you have, including credit cards, installment loans, finance company accounts, mortgage loans and so on.

Top 10 states with the highest credit scores

Midwestern states maintained the highest average credit scores for another year, ranging from 17 to 29 points higher than the overall average credit score (710). Here are the top 10 states with the highest credit scores in 2020:

1. Minnesota: 739
2. Wisconsin: 732
3. South Dakota: 731
4. Vermont: 731
5. North Dakota: 730
6. Washington: 730
7. Massachusetts: 729
8. New Hampshire: 729
9. Nebraska: 728
10. Hawaii: 727

Top 10 states with the lowest credit scores

Southern states had lower average credit scores than the rest of the country, despite all states experiencing a boost (between 3 and ten points) in credit scores compared to 2019. Here are the top 10 states with the lowest credit scores in 2020:

1. Mississippi: 675
2. Louisiana: 684
3. Alabama: 686
4. Texas: 688
5. Georgia: 689
6. South Carolina: 689
7. Arkansas: 690
8. Oklahoma: 690
9. New Mexico: 694
10. Nevada: 695

Average FICO Scores by state in 2020

State	2019	2020	Change
Alabama	680	686	6
Alaska	707	714	7
Arizona	696	706	10
Arkansas	683	690	7
California	708	716	8
Colorado	718	725	7
Connecticut	717	723	6
Delaware	701	710	9
District of Columbia	703	713	10
Florida	694	701	7
Georgia	682	689	7
Hawaii	723	727	4
Idaho	711	720	9
Illinois	709	716	7
Indiana	699	707	8
Iowa	720	726	6
Kansas	711	717	6
Kentucky	692	698	6
Louisiana	677	684	7
Maine	715	721	6
Maryland	704	712	8
Massachusetts	723	729	6
Michigan	706	714	8
Minnesota	733	739	6
Mississippi	667	675	8
Missouri	701	707	6
Montana	720	726	6
Nebraska	723	728	5
Nevada	686	695	9
New Hampshire	724	729	5
New Jersey	714	721	7
New Mexico	686	694	8
New York	712	718	6
North Carolina	694	703	9
North Dakota	727	730	3
Ohio	705	711	6
Oklahoma	682	690	8
Oregon	718	727	9
Pennsylvania	713	720	7
Rhode Island	713	719	6
South Dakota	727	731	4
Tennessee	690	697	7
Texas	680	688	8
Utah	716	723	7
Vermont	726	731	5
Virginia	709	717	8
Washington	723	730	7
West Virginia	687	695	8
Wisconsin	725	732	7
Wyoming	712	719	7

Improve your credit with this free service

Raising your credit score can be done in a number of ways, from reducing spending to paying on time, but there's also an alternative that doesn't require much work on your part: Experian Boost™. This is a free service that lets you get credit for positive, on-time utility, telecom and streaming subscription payments. Late payments aren't reported with Experian Boost, though your creditors typically notify the credit bureaus when a payment is late for 30 or more days.

All you need to do is connect your bills, then you'll instantly receive a new FICO Score provided by Experian. This may reflect an increase, which can help boost your credit score into a higher tier. Take note that this service only influences your Experian credit report.

Experian Boost™

On Experian's secure site

• Cost

• Average credit score increase

  13 points, though results vary

• Credit report affected

• Credit scoring model used

Terms apply.

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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the CNBC Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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Minnesota residents have the highest average credit score—here's how other states compare - CNBC
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