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Determining Average Credit Score By Residential State

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


State

Average Credit Score

Arkansas

694

Alaska

717

Alabama

691

Arizona

710

Colorado

728

California

721

Connecticut

728

District of Columbia

717

Delaware

714

Florida

706

Hawaii

732

Georgia

693

Iowa

729

Idaho

725

Indiana

712

Illinois

719

Louisiana

689

Kentucky

702

Kansas

721

Maine

727

Massachusetts

732

Maryland

716

Montana

730

Michigan

719

Mississippi

681

Minnesota

742

Missouri

711

Nebraska

731

New Hampshire

734

Nevada

701

New Jersey

725

North Dakota

733

New York

722

New Mexico

699

North Carolina

707

Ohio

715

Oregon

731

Oklahoma

692

Pennsylvania

723

South Dakota

733

South Carolina

693

Rhode Island

723

Texas

692

Tennessee

701


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:


Generation

Average 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 Income

Average Credit Score

Low Income

658

Moderate Income

692

Middle Income

735

High Income

774


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.


Year

Average Credit Score

2021

714

2020

710

2019

702

2018

705

2017

701

2016

699

2015

696

2014

694

2013

690

2012

689

2011

689

2010

687


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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