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The average FICO score in 2024 is 717. While this score falls into the Good category, a study by WalletHub reveals that eight states have average credit scores higher than the national average.
The states that met or surpassed the national average credit score:
- Minnesota: 726
- New Hampshire: 723
- Vermont: 722
- Wisconsin: 720
- South Dakota: 718
- Massachusetts: 718
- Washington: 718
- North Dakota: 717
While your credit score doesn’t have to be perfect, and it is possible to get a loan without a credit score, having a high score can make borrowing money for the things you need easier and may even get you a lower interest rate. People with higher-than-average credit scores typically exhibit many of the following behaviors.
Paying Bills on Time
If you miss a payment or pay late, it can negatively impact your credit score and make you seem like a less trustworthy borrower. Making on-time payments, however, can boost your score and make you more appealing to lenders.
“Payment history is the largest factor in your score at 35%,” said credit expert Jean Kelly.
So paying at least the minimum payment “or the full balance if possible” on time will allow you to avoid extra interest or late fees and contribute to a higher score.
Paying Down Their Debt
The FDIC recommends paying down your debt to avoid reaching your credit limit. This can also help your credit utilization ratio — the percentage of how much credit you have versus how much you use. The less of the available credit you use, the lower your credit utilization ratio will be. This contributes to a higher overall credit score.
Kelly advised borrowers to “keep your balances at 10% or less of your credit limit, as balances make up 30% of your score.” Because your statement balance is reported, she said to “pay it down 72 hours before the statement closing date to keep your utilization low.”
Borrowing Only for Necessities
Another FDIC recommendation for maintaining a good credit score is to only borrow for things you need. This can help keep your balance lower. The FDIC also notes that borrowing only for things you need will allow you to pay down existing debt.
In the case of Minnesota, 96.7 The River covered this story and joked that part of the reason that their credit score is the highest is because residents don’t leave their house much through the cold winter months.
Budgeting Their Income
Having a budget that tells you how much money you have to work with each month. Allocating your income to expenses and savings and sticking to your budget can help maintain a good credit score. WalletHub ranked the states with the best and worst budgeters, and six of the eight states made the top 10 for best budgeters — South Dakota came in at 11, and North Dakota ranked 15.
