Every year, millions of Americans apply for loans to buy a home, finance a car, pay for education, and start businesses. Unfortunately, 30% of those same Americans may struggle with fair to poor credit. Credit scores can play a large role in determining eligibility for a loan. Those with excellent credit have a better chance of loan approval and a lower interest rate. However, applicants with fair and poor credit may struggle with application approval and getting a loan at a lower interest rate. Wherever a person may be on the credit score scale, it’s important to acknowledge that credit is a large part of the American lifestyle and can influence certain outcomes. Based on a number of data reports from Experian and Transunion, our infographic takes a look at the average credit scores in regional zones across the US, the average credit score in the US over the last 7 years, as well as US states with the highest and lowest credit scores.
In Experian’s State of Credit Report for the 2019 year, the data set recorded the average credit score in the US, which was 703, the highest number in the last 7 years. These findings prove exciting as a reflection of the state of credit in the US. The data set shows a gradual and steady improvement in the average American’s credit score from the year 2012 until 2019. Overall, these data points may signify an improvement in the average American’s financial journey; people are borrowing on credit or through loans, and are making their payments on time in the full amount.
An improvement in a person’s credit score will work out in that person’s favor in the long run. With a good credit score, banks, financial institutions, car dealerships, and even apartment landlords, will consider your credit score before you take out a loan, make a large purchase, or rent an apartment. Your credit score signifies your “trustworthiness” when it comes to making payments on time and in full. With a good credit score, a person’s interest rates on a loan will be lower. Those who have a higher credit score may have a better chance of approval for an application or be considered eligible for many opportunities. On the other hand, lower credit scores may indicate a lower level of “trustworthiness” and may result in higher interest rates, and lower rates of eligibility and application approval.
The infographic also examines Transunion’s regional credit score averages in the US. The west coast region has an average credit score of 676, while the southern region has an average credit score of 657. The average credit score in the northwest region is 676, while the average in the midwest region is 680. The infographic also examines the top 3 US states with the highest average credit score, as well as the top 3 states with the lowers average credit score. The top 3 states with the highest credit score include Minnesota, South Dakota, and Vermont. The top 3 states with the lowest credit score include Mississippi, Louisiana, and Nevada.