May 14, 2013

Credit Scores by State : Lend to Minnesota but Not Nevada

I was looking for information on credit scores and found a page on Cardhub that has the average credit score by state.  Cardhub indicated that the source was Experian but I followed the link and I don't see the state averages on Experian currently but they might have removed them.

The Experian site does have a full list of average credit scores by major cities for 2012  and 2011 numbers which are also interesting if you wanna look at individual cities.    

Note the numbers are Experians credit score called Vantage Score and not the FICO number.   The Experian numbers range from 500 to 990 so the cap is much higher than the FICO.    Oh and before Nevada residents take offense I'm just joking with that article title. 

In any case here are the average numbers per state for 2011:

Average Credit Score By State:

State Average Credit Score
Alabama 680
Alaska 691
Arizona 680
Arkansas 683
California 690
Colorado 695
Connecticut 711
Delaware 694
Florida 683
Georgia 677
Hawaii 707
Idaho 705
Illinois 699
Indiana 695
Iowa 714
Kansas 702
Kentucky 688
Louisiana 674
Maine 708
Maryland 695
Massachusetts 713
Michigan 695
Minnesota 721
Mississippi 672
Missouri 694
Montana 714
Nebraska 712
Nevada 668
New Hampshire 714
New Jersey 705
New Mexico 677
New York 699
North Carolina 682
North Dakota 719
Ohio 696
Oklahoma 685
Oregon 704
Pennsylvania 705
Rhode Island 704
South Carolina 674
South Dakota 719
Tennessee 687
Texas 670
Utah 699
Vermont 716
Virginia 699
Washington 707
Washington, D.C. 682
West Virginia 686
Wisconsin 713
Wyoming 703
US National 692

The variation there is pretty wide really.    The lowest average is in Nevada at 668 while the highest is Minnesota at 721.   Thats about +/- 30 points from the national average or roughly 5% give or take.   A 50 point swing between the best and worst is actually a pretty wide jump really.

I don't know why we'd see such large differences in scores but I bet that demographics has a lot to do with it.   For example younger people have lower scores on average so a state that has more young people will have a lower state wide average.  A high rate of delinquencies, foreclosures and short sales from the housing bust could also really hurt places like Nevada.


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