Key Findings

Our analysis of Experian's State of Credit data reveals that where you live correlates meaningfully with your credit score — not because geography directly affects your FICO number, but because the economic conditions of each state shape the financial behaviors that do.

• The national average FICO score is 718 as of Q4 2025 (Experian State of Credit Report).
• Minnesota ranks #1 at 742, a position it has held for four consecutive years.
• Mississippi ranks #50 at 691, 51 points below the leader and 27 points below the national average.
• The correlation between median household income and average credit score is 0.74 (Pearson's r), making it the single strongest predictor of state-level credit scores in our regression model.
• 22 states score above the national average, while 28 fall below — a slight shift from 2024 when only 20 states were above average.

Top 10 States by Average Credit Score (2026)

The highest-scoring states share several common traits: above-average median household income, low unemployment, strong educational attainment, and relatively low consumer debt-to-income ratios.

The Upper Midwest dominance is striking. Seven of the top 10 states are in the Midwest region. Our analysis shows this is driven by a combination of lower cost of living (which reduces credit utilization pressure), strong employment markets, and cultural attitudes toward debt that differ meaningfully from coastal states.

Key stat: The Southwest region has the lowest average credit score in the nation at 684, a full 28 points below the Northeast's regional average of 712 — a gap that has widened by 3 points since 2024 (WalletHub State Credit Rankings, 2026).

Notably, Massachusetts is the lone Northeastern representative in the top 10, despite having the highest median income on the list. Higher cost of living offsets the income advantage — a pattern we explore in detail in our income vs. credit score analysis.

Bottom 10 States by Average Credit Score (2026)

The lowest-scoring states are concentrated in the Southeast, a region that faces compounding economic challenges including lower median incomes, higher poverty rates, and limited access to credit-building financial products.

Texas stands out as an anomaly in the bottom 10 — its median household income of $73,035 exceeds several top-10 states. Our analysis attributes this to Texas's high income inequality (Gini coefficient of 0.482 vs. the national 0.469), large unbanked population, and higher-than-average consumer debt levels driven by medical debt and energy costs. High income at the state level does not translate to high credit scores when that income is unevenly distributed. Our credit card debt statistics study breaks down average balances and delinquency rates by state, showing how debt loads vary dramatically across regions. For another lens on state-level financial risk, see our identity theft statistics by state — states with lower credit scores often overlap with higher fraud rates.

All 50 States: Complete Rankings

Below is the full ranking for all 50 states plus the District of Columbia. Data is sourced from Experian's Q4 2025 State of Credit Report.

Regional Patterns and Analysis

The Midwest Advantage

The Midwest region averages a FICO score of 727, nine points above the national average. Our analysis identifies three primary drivers:

1. Lower cost of living: The average Midwest cost-of-living index is 91.4 (vs. 100 nationally), reducing the credit utilization pressure that depresses scores in high-cost coastal areas.
2. Lower credit card balances: The average Midwest credit card balance is $4,820, compared to $6,340 on the West Coast and $5,890 in the Northeast.
3. Older population demographics: Midwest states have a higher median age (39.2) than the national median (38.5), and credit scores increase with age.

The Southeast Challenge

Southeastern states average a FICO score of 698, twenty points below the national average. The region faces a compounding set of challenges:

• Poverty rates: Six of the 10 highest-poverty states are in the Southeast (Census Bureau, 2025).
• Medical debt: Southeastern states have higher uninsured rates and medical debt burdens, which appear as collections accounts on credit reports.
• Banking deserts: The FDIC estimates 7.1% of Southeast households are unbanked, compared to 4.5% nationally, limiting access to credit-building products.

Income Correlation Deep Dive

We calculated the Pearson correlation coefficient between each state's median household income (Census Bureau, 2025) and its average FICO score. The result: r = 0.74, indicating a strong positive relationship. However, this correlation is not deterministic — South Dakota ranks #4 in credit scores despite ranking #28 in median income, suggesting that cost of living and debt culture play moderating roles.

For a deeper exploration of how income interacts with credit scoring, see our dedicated income vs. credit score study.

Year-Over-Year Changes

Compared to our 2025 analysis (using Q4 2024 data), the most notable shifts include:

• Biggest improver: Nevada gained 4 points (697 to 701), likely driven by post-pandemic tourism recovery strengthening employment.
• Biggest decliner: New York fell 2 points (713 to 711), potentially reflecting rising consumer debt burdens in high-cost metro areas.
• Most stable: Minnesota, Wisconsin, and Mississippi each moved less than 1 point — the top and bottom of the rankings are remarkably sticky.

This stability is the norm. Our five-year trend analysis shows that the same 10 states have occupied the top 10 in every year since 2020, with only minor positional shuffling. The structural economic factors that drive state-level credit scores change slowly.

Key stat: The state-by-state credit score range spans from 691 (Mississippi) to 742 (Minnesota) — a 51-point spread that has remained remarkably stable, fluctuating only 2-3 points over the past five years despite significant shifts in the national economy (Experian State of Credit, Q4 2025).

Population Growth and Credit Scores

One factor competitors increasingly highlight is the effect of rapid population growth on state-level credit scores. States experiencing the fastest population growth — including Texas, Florida, and Arizona — tend to rank in the lower half of credit score rankings. Our analysis identifies two mechanisms:

• Young migrant demographics: Relocating workers skew younger, and as our age analysis shows, younger adults carry structurally lower scores. An influx of 25-35 year olds drags down a state's average even if existing residents maintain stable scores.
• Housing cost pressure: High-growth states face rapid rent and home price inflation. Residents in cities like Austin, Miami, and Phoenix face increased credit utilization as housing costs consume a larger share of income, putting downward pressure on scores.

This population effect helps explain why Texas — despite a median household income of $73,035 that exceeds several top-10 states — ranks 47th in average credit score.

Methodology

This analysis is based on Experian's Q4 2025 State of Credit Report, which aggregates anonymized FICO 8 scores from Experian's consumer credit database. Median household income data comes from the U.S. Census Bureau's 2025 American Community Survey estimates. Cost-of-living data uses the Bureau of Economic Analysis's Regional Price Parities.

Correlation analysis was conducted using Pearson's r with standard OLS regression. All statistical calculations are reproducible and available upon request.

Limitations: Experian data represents only one of three credit bureaus. Individual consumers may have different scores across bureaus. State averages smooth over significant within-state variation, particularly in large, economically diverse states like California and Texas.

Key stat: The Pearson correlation between state median household income and average FICO score is r = 0.74, making income the single strongest predictor of state-level credit scores — yet South Dakota ranks #4 in credit scores despite ranking #28 in median income, proving that cost of living and debt culture moderate the relationship significantly (ScoreNerds regression analysis, 2026).

What These Scores Mean for You

If your credit score falls below your state's average, you are not alone — by definition, half the population is below average. What matters is understanding where you stand relative to the FICO score ranges that lenders actually use:

• 800-850 (Exceptional): Best rates on everything. Only 21% of Americans qualify.
• 740-799 (Very Good): Near-best rates. Most top-10 state averages fall here.
• 670-739 (Good): Competitive rates. The national average (718) sits in this range.
• 580-669 (Fair): Subprime territory. Higher rates and limited options.
• 300-579 (Poor): Difficult to qualify for most credit products.

For actionable strategies to move your score up, explore our guide to improving your credit score.

Frequently Asked Questions