Average Credit Scores And Where Do You Fit
Average Credit Scores And Where Do You Fit What are the average credit scores in the United States? Right now, even though we are a year or more into a recession, the average credit score has not fallen all that much; it remains at around 690, which is within a few points of where average credit scores were a couple of years ago. This says a lot for the spirit of the American people; despite the downtown in the economy, the majority of people still work hard to pay their bills, and really, in this economy, it is more important than ever to try to keep your credit score right at par with average credit scores around the nation, and within your own home state. Most economists predict, and it would seem reasonable, that the average credit score is going to begin falling sometime soon. As unemployment rates increase and underemployment becomes more prevalent, and as the downward trend in investments continues, average credit scores are very likely to drop, simply because people who would otherwise be very focused on paying their bills in a timely fashion may simply be unable to do so. If you can, though, you should work hard to protect your credit rating; banks and other lenders are becoming more and more picky about whom they will allow to borrow money, and the terms for less-than-perfect credit are getting more stringent. For example, six years ago, I got divorced and bought a house. My credit score was slightly below the average credit score at that time � about 685. I qualified, however, for great terms, because at that time, low interest rates were awarded to people with a rating of 680 or better. Six years later, with all personal circumstances being the same, I would not qualify for that 5% mortgage, as most lenders in my area are requiring a score of 750 or more to get the best rates. That is a jump of seventy points, so as you can see, it is even more important that you keep your credit history clean, make sure your report is accurate, and work to keep your score as high as you can. So where do you stand? The average credit scores are highest in Vermont, Minnesota, Massachusetts, South Dakota, North Dakota, Iowa, New Hampshire, and Montana. The average credit scores in all of these states is 700 or higher. The average credit scores are lowest in Texas, Louisiana, West Virginia, Michigan, Georgia, North Carolina, New Mexico, Nevada, Arizona, Alaska, and Alabama. All of these states have average credit scores in the 660�s and 670�s.