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Top 10 states with the worst credit scores


Credit scores are one of the most important financial indicators that reflect how well a person handles their personal finances. It is essential for consumers to understand the credit score before applying for a loan or making major purchases.


We’ve listed out 10 states with the worst credit scores, but there are plenty of other states with high credit card debt rates.


New Hampshire has the highest credit card debt rate in the United States at 39%, and Vermont is in second place with 36%. The state with the lowest amount of credit card debt is New Jersey, at 15%.


As of Oct 2021, the national average of credit scores is 670. This means that most Americans are more than qualified to apply for a loan. However, some states have low credit scores due to smaller markets and less financial opportunities.


Puerto Rico has the lowest credit score at 528, followed by Mississippi with 537. The Credit Report also looks at economic factors like employment rate and poverty rates which contribute to lower credit scores in these states.


The Credit Score Report was created by Experian Data Quick which analyzes data on over 400 million consumers across more than 175 industries in the U.S.


List of 10 states with the worst credit scores


10: New Mexico and Arkansas, 653.7

Missed payments and delinquent debts are big contributors to low credit scores in New Mexico. The Urban reports that nearly half (47%) of residents have past due or otherwise non-current debt on their mortgage, car loan(s), student loans etc., with an additional 18% having some amount owed but not enough for concern about loss should it go into collections. The state has one of the highest rates within our study at 641%.


9: Tennessee, 653.6

has one of the poorest economies in America, and its residents are at an economic disadvantage. The median household income is $40K; this means that less than 50% earn more than this amount annually (the sixth lowest nationally). With little money coming into these states’ borders due to their high cheap cost labor force costs combined with few major industries here because much like other Southern States Tennessee doesn’t offer many opportunities for job growth outside what’s offered by government jobs or related fields such as health care services which will bring down your average earnings even further when compared against other parts our country where there may be greater demand on skilled workers thanks largely due not only availability but also higher pay rates across different disciplines so check out how things work if you’re thinking.


8: Alabama, 652.4

It’s not surprising that Alabamahas one of the worst credit scores in America. With over 47% percent who are currently carrying debt or have been recently, it will be difficult to find an affordable mortgage here–and you’re probably not going anywhere anytime soon if your car payment keeps getting declined for lack of funds!


7: South Carolina, 650.3

South Carolina‘s credit scores are not perfect, with an average of 650.3 on the border between poor and fair making it difficult for residents in this state to qualify for loans or get favorable terms if they have good enough grades but cannot afford higher interest rates because their income isn’t high enough without going into debt!


The median household income is also low at just $44 929 per year which means most people can only manage paying down debt while juggling everyday life expenses so managing one’s personal finances wisely becomes all that more important when you live here.


6: Oklahoma, 649.5

The median household income in Oklahoma is $47,199 and the credit card delinquency rate saw a 14.6 percent year-over-year change according to recent numbers from Experian — which puts it at number 47 out of 50 states (and DC). That’s not too surprising considering how many residents struggle with debt as well; but what might shock some people is just how much these problems seem to be getting worse rather than better!


5: Texas, 646.9

Despite the state of Texas having one of the worst credit scores in America, they are still able to provide an average income for their citizens which exceeds what is required by most financial institutions. It’s really no wonder why so many people live there!


Methodology

You may be surprised to find out that your state is not the best or worst in credit scores. For this reason, GOBankingRates sourced average credit reports by Experian for 213 U.S cities reported city-by-city across all 50 states with data available from Experian’s 2021 State Of Credit report (including DC but excluding New Hampshire).


From these averages they averaged together only those scrabble locations – including Dc despite its lack thereof; then ordered them highest through lowest until finding which gave rise to some surprising results!


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