Determining Average Credit Score By Residential State

Interest Insights

Nowadays, getting a loan is a complex process. One of the most important factors in this process is the credit score. The three digits decide your fate regarding homeownership. The lower your credit score, the higher the interest rate will be on the mortgage.

35% of your payment history, 30% of your debts, 15% of your credit history length, 10% of new credit, and 10% of credit types make up your credit score. The one thing lenders are concerned about is your ability to repay the loan. They determine this by looking at your credit score and employment history.

Here are the five credit score categories according to the FICO Model:

  • Very Poor: 300 to 579
  • Poor: 580 to 669
  • Fair: 601 to 660
  • Good: 670 to 739
  • Very Good: 740 to 799
  • Exceptional: 800 to 850

Based on this, a lender files a borrower into a category and decides the interest rate they are eligible for. To get the ideal interest rate, you need to have a Good credit score between 670 and 730.

The good news is that every state has a different average credit score. As a result, a house costing $300,000 in Alaska might cost the same in California, with the same credit score. Let’s that a look at the average credit score of all 50 states in the US:

Average Credit Score by State

StateAverage Credit Score
Arkansas694
Alaska717
Alabama691
Arizona710
Colorado728
California721
Connecticut728
District of Columbia717
Delaware714
Florida706
Hawaii732
Georgia693
Iowa729
Idaho725
Indiana712
Illinois719
Louisiana689
Kentucky702
Kansas721
Maine727
Massachusetts732
Maryland716
Montana730
Michigan719
Mississippi681
Minnesota742
Missouri711
Nebraska731
New Hampshire734
Nevada701
New Jersey725
North Dakota733
New York722
New Mexico699
North Carolina707
Ohio715
Oregon731
Oklahoma692
Pennsylvania723
South Dakota733
South Carolina693
Rhode Island723
Texas692
Tennessee701

Average Credit Score by Generation

As said earlier, a borrower’s credit history also plays a huge role in setting the credit score. Here’s how the average credit score differs by generation and age:

GenerationAverage Credit Score
Generation Z (18-24)679
Millennials (25-40)686
Generation X (41-56)705
Baby Boomers (57-75)740
Silent Generation (76+)760

Average Credit Score by Income

How much you earn also has a small impact on whether a lender will approve your loan application. You must submit your paystubs and W-2 Form, which tell the lender if you can keep up with the monthly payments.

Annual IncomeAverage Credit Score
Low Income658
Moderate Income692
Middle Income735
High Income774

Average Credit Score by Year

Data reported by collection agencies and lenders help decide how capable borrowers are becoming every year in paying their debts. The average credit usually changes annually based on this information.

YearAverage Credit Score
2021714
2020710
2019702
2018705
2017701
2016699
2015696
2014694
2013690
2012689
2011689
2010687

Keep track of your credit score by going through your credit reports to ensure there are no false charges on them. Dispute any negative marking by writing a letter with proof to the credit reporting agency.

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