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What is the lowest credit score?

What is a FICO Score? Very poor: 300 to 579. Fair: 580 to 669. Good: 670 to 739. Very good: 740 to 799. Excellent: 800 to 850.

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The average FICO Score in the U.S. hit a record high of 710 last year, according to Experian’s 2020 Consumer Credit Review. And a majority of states (33) managed to achieve or surpass this record high. Minnesota residents topped the list for the ninth straight year with an average 739 credit score. Meanwhile, Mississippi residents continued to have the lowest credit score of any state (675) — though that’s an eight-point increase from last year (667). All states experienced a credit score increase ranging from three to 10 points in 2020. That could be due to more on-time payments and lowered spending during a year of economic uncertainty. Ahead, we give you a quick overview of what a FICO® Score is and reveal the states with the highest and lowest credit scores (jump to credit score by state if you don't need a refresher).

What is a FICO Score?

A high credit score qualifies you for the best interest rates and terms on everything from credit cards to mortgages. FICO Scores are used in over 90% of U.S. lending decisions, making it a must-know number before applying for any financial product. FICO Scores are broken up into five categories that help lenders gauge your ability to repay loans. Here are the credit score ranges for each category: Very poor : 300 to 579

300 to 579 Fair : 580 to 669

580 to 669 Good : 670 to 739

670 to 739 Very good: 740 to 799

740 to 799 Excellent: 800 to 850 Take action: Check your FICO Score for free

What factors matter for a credit score?

The FICO credit scoring model looks at these five key factors and weighs each differently: Payment history (35%): Whether you’ve paid past credit accounts on time. Amounts owed (30%): The total amount of credit and loans you’re using compared to your total credit limit, also known as your utilization rate. Length of credit history (15%): The length of time you’ve had credit. New credit (10%): How often you apply for and open new accounts. Credit mix (10%): The variety of credit products you have, including credit cards, installment loans, finance company accounts, mortgage loans and so on.

Top 10 states with the highest credit scores

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Midwestern states maintained the highest average credit scores for another year, ranging from 17 to 29 points higher than the overall average credit score (710). Here are the top 10 states with the highest credit scores in 2020: Minnesota: 739 Wisconsin: 732 South Dakota: 731 Vermont: 731 North Dakota: 730 Washington: 730 Massachusetts: 729 New Hampshire: 729 Nebraska: 728 Hawaii: 727 / Oregon: 729

Top 10 states with the lowest credit scores

Southern states had lower average credit scores than the rest of the country, despite all states experiencing a boost (between 3 and ten points) in credit scores compared to 2019. Here are the top 10 states with the lowest credit scores in 2020: Mississippi: 675 Louisiana: 684 Alabama: 686 Texas: 688 Georgia: 689 South Carolina: 689 Arkansas: 690 Oklahoma: 690 New Mexico: 694 Nevada: 695 Average FICO Scores by state in 2020 State 2019 2020 Change Alabama 680 686 6 Alaska 707 714 7 Arizona 696 706 10 Arkansas 683 690 7 California 708 716 8 Colorado 718 725 7 Connecticut 717 723 6 Delaware 701 710 9 District of Columbia 703 713 10 Florida 694 701 7 Georgia 682 689 7 Hawaii 723 727 4 Idaho 711 720 9 Illinois 709 716 7 Indiana 699 707 8 Iowa 720 726 6 Kansas 711 717 6 Kentucky 692 698 6 Louisiana 677 684 7 Maine 715 721 6 Maryland 704 712 8 Massachusetts 723 729 6 Michigan 706 714 8 Minnesota 733 739 6 Mississippi 667 675 8 Missouri 701 707 6 Montana 720 726 6 Nebraska 723 728 5 Nevada 686 695 9 New Hampshire 724 729 5 New Jersey 714 721 7 New Mexico 686 694 8 New York 712 718 6 North Carolina 694 703 9 North Dakota 727 730 3 Ohio 705 711 6 Oklahoma 682 690 8 Oregon 718 727 9 Pennsylvania 713 720 7 Rhode Island 713 719 6 South Dakota 727 731 4 Tennessee 690 697 7 Texas 680 688 8 Utah 716 723 7 Vermont 726 731 5 Virginia 709 717 8 Washington 723 730 7 West Virginia 687 695 8 Wisconsin 725 732 7 Wyoming 712 719 7

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Raising your credit score can be done in a number of ways, from reducing spending to paying on time, but there's also an alternative that doesn't require much work on your part: *Experian Boost™. This is a free feature that lets you get credit for positive, on-time utility, telecom and streaming subscription payments. Late payments aren't reported with Experian Boost, though your creditors typically notify the credit bureaus when a payment is late for 30 or more days. All you need to do is connect your bills, then you'll instantly receive a new FICO® Score provided by Experian. This may reflect an increase, which can help boost your credit score into a higher tier. Take note that this feature only influences your Experian credit report.

Experian Boost® Learn More On Experian's secure site Cost Free

Average credit score increase 13 points, though results vary

Credit report affected Experian®

Credit scoring model used FICO® Score Results will vary. See website for details. How to sign up for Experian Boost: Connect the bank account(s) you use to pay your bills Choose and verify the positive payment data you want added to your Experian credit file Receive an updated FICO® Score Learn more about eligible payments and how Experian Boost works. *Results may vary. Some may not see improved scores or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost. Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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