Average Credit Scores
Average Credit Scores and National Credit Averages:
National average credit score: With all the talk about the economy in recent months and buzz surrounding the national average credit score, every one wants to know what it is and why, either to see where they place, plain curiosity or they’re worried about qualifying for a loan. So how will do want to know how you’ll compare to the National average credit score. Enough suspense, we’re not going to keep you in the dark....the national average credit score is 680. The credit score is based on research conducted by Experian ( one of the three major credit reporting and scoring agencies.) Experian uses the Fair Isaac Risk Model (see FICO Score for details). Basically the FICO model is the credit model developed by Fair Isaac. Factors Affecting the National Average Credit Score: |
Out of the five metrics that go into calculating a FIC score there are two key pieces of information that account for 65% of the total score:
1) Payment History (Weighted at 35% of credit score)
Your payment history is measured from reports sent by lenders and creditors. Essentially this is reflective of weather or not the bills or loans are paid on time and at the minimum amount.
2) Outstanding Debt (accounting for 30% of a credit score)
The other major key factor in calculating a credit score is the amount outstanding debt. Also know as a debt to income ratio, the higher the debt compared to income the lower the average credit score will be. This essentially is one the biggest problems facing the national average credit score and overall finical situation in the States right now. To put bluntly the average American is in debt way over their head.
National Credit Score – How Does Your Credit Score Rate:
From the A Recent Experian National Score Index (September 2008). These credit score are based on information compiled from the credit bureaus immense database of credit scores for the United States.
Note that the term national average credit score and average US credit score are used interchangeably as the study was done for the United Stated Credit Score.
Highest National Average Credit Score:
The credit score of 710 and was the highest national average credit score for a state, and First place goes to the state of South Dakota.
As for the national average credit score for cities, if you live in Minneapolis, you are in good company with the nation’s best credit scores, according to the most recent data from Experian. You and your neighbours have the highest average credit score of 705. Boston residents rank a very close second, with an average credit score of 704.
Lowest National Average Credit Score:
Lowest state wide credit score of 651: State of Texas. Watch out consumers of Texas, you have the lowest average credit score in the nation. Coming in at a close second is Nevada, with an average credit score of 655.
City wise, Dallas and Houston came in at the bottom of the list, with more than 50 points behind Minneapolis. The Texas cities have average credit scores of 650 and 652.
Quick National Credit Score Facts:
There are 29 states that have an average credit score above the national average.
There are a total of 22 states, including the District of Columbia that have an average credit score below the national average.
Quick National Credit Score Facts Reference:
Credit Rating Guide:
Grade: |
AA |
A |
B |
C |
D |
E |
HR |
Score: |
760 and Up |
720-759 |
680-719 |
640-679 |
600-639 |
560-599 |
520-559 |
States Above or at the National Average Credit Score:
| National Average | 680 | Rhode Island | 692 |
| Kansas | 682 | New Jersey | 693 |
| Utah | 683 | Connecticut | 694 |
| Missouri | 683 | Nebraska | 695 |
| Illinois | 684 | Pennsylvania | 696 |
| Delaware | 684 | Wisconsin | 699 |
| Ohio | 685 | Maine | 699 |
| Oregon | 686 | Iowa | 700 |
| New York | 686 | Montana | 701 |
| Maryland | 688 | New Hampshire | 703 |
| Idaho | 688 | Massachusetts | 703 |
| Hawaii | 688 | Vermont | 706 |
| Virginia | 689 | North Dakota | 706 |
| Wyoming | 690 | Minnesota | 707 |
| Washington | 691 | South Dakota | 710 |
States Below the National Average Credit Score:
| Texas | 651 | California | 672 |
| Nevada | 655 | Florida | 673 |
| Arizona | 659 | Colorado | 674 |
| New Mexico | 663 | Alaska | 674 |
| Louisiana | 663 | Indiana | 676 |
| South Carolina | 665 | Alabama | 676 |
| Oklahoma | 666 | Washington DC | 677 |
| North Carolina | 667 | Kentucky | 677 |
| Mississippi | 668 | West Virginia | 679 |
| Georgia | 668 | Tennessee | 679 |
| Arkansas | 668 | Michigan | 679 |
