The Average Credit Scores By State Show A Staggering 62-Point Gap (2024)

Credit scores—a three-digit numerical number—give a snapshot view of how creditworthy a potential applicant may be. The higher the score, the higher your chance of getting approved for a new account like an auto loan, personal loan or mortgage.

When a lender or landlord reviews your credit, it might use one of two credit scoring models: VantageScore or FICO. Both scoring models range from 300 to 850. And according to a July 2021 VantageScore report, the average credit score in America is 697.

We’ll walk you through a comparison of the score ranges of both models, take a look at the average credit scores in each state and provide tips on how to improve your credit score.

VantageScore and FICO Credit Score Ranges

While both VantageScore and FICO share the same overall credit score range—300 to 850—the tier classifications differ. For example, what’s considered to be a “good” score for VantageScore is different when compared to what’s deemed “good” by FICO.

VantageScore Ranges

VantageScore credit scores range from 300 to 850, with classifications of Very Poor, Poor, Fair, Good and Excellent. Here’s a breakdown of the score ranges:

FICO Credit Score Ranges

FICO scores have identical ranges to VantageScore—300 to 850—but use different classifications: Poor, Fair, Good, Very Good and Exceptional. Here’s a breakdown of its range and classifications:

Average Credit Score By State

The average credit score varies across America. For instance, in July 2021, there was a gap of 62 points between the lowest and highest average VantageScore credit score by state: Mississippi had the lowest average credit score at 662 while Minnesota had the highest average score at 724.

The 10 states with the lowest average VantageScore credit scores in July 2021 were Mississippi (662), Louisiana (667), Alabama (670), Arkansas (671), Oklahoma (671), Texas (673), Georgia (675), West Virginia (675), Kentucky (676) and South Carolina (676).

States with the 10 highest VantageScore credit scores in July 2021 were Minnesota (724), Vermont (719), New Hampshire (719), Massachusetts (718), Washington (716), Hawaii (716), South Dakota (713), Oregon (712), North Dakota (712) and Colorado (711).

Consumer VantageScore Insights

How to Improve Your Credit Score

It’s important to keep in mind that the average credit score in your state has zero impact on your credit score. If you want to improve or build your credit, here are five steps you can take.

1. Pay All of Your Bills on Time

Your payment history is the most important credit score factor—it accounts for 40% of your VantageScore and 35% of your FICO score. Repaying your debt on time can improve your score. However, payments that are 30 days past due can cause major damage.

To avoid late payments, enroll in autopay or use a bill management app or spreadsheet to keep track of your due dates.

2. Keep Your Credit Utilization Ratio Low

The second most important factor is your credit utilization ratio—this measures how much debt you have versus your available credit limit. For example, if you have a $2,000 balance and your total credit limit is $10,000, your credit utilization ratio is 20% ($2,000 / $10,000).

It’s often recommended to keep this ratio under 30%. However, keeping it closer to 0% could raise your score even more.

3. Review Your Credit Reports

Your credit score is based on information listed in your credit reports. If your creditors report negative information to one of the three major credit bureaus—Experian, Equifax or TransUnion—it can damage your credit score. To catch and fix any errors, check your credit reports at least once a year.

Due to Covid-19, you can view all three reports for free weekly through April 20, 2022 by visiting AnnualCreditReport.com. If you see any errors, dispute them with each credit bureau that lists it on your report.

4. Consider Applying for a Secured Credit Card

A secured credit card is designed to help consumers who have minimal or damaged credit histories build or rebuild credit. Unlike a traditional credit card, it requires a security deposit. The amount you put down serves two purposes: it helps establish your credit limit and is used as collateral in case you don’t repay what you borrow.

If you pay your credit card bill on time and the issuer reports this to the credit reporting agencies, it can help you build credit.

5. Become an Authorized User

You can also use a credit card to build credit without applying for your own card. This involves asking a family member or friend with good credit to add you as an authorized user on their card. If the primary cardholder’s issuer reports authorized user information to the credit bureaus, it could improve your score.