Average Credit Score by State: Who Has the Best Financial Health

The average American credit score is 713, according to Experian's end-of-2025 data, and 714 per FICO's Spring 2026 Credit Insights report. That one-point difference between sources is noise. The 54-point gap between Minnesota and Mississippi is not.

The State-by-State Breakdown

The top-performing states cluster in the Upper Midwest and New England. Minnesota leads with an average score of 742, followed closely by Vermont, Wisconsin, and New Hampshire in the 730s. These states consistently punch above the national average by 20 or more points.

At the bottom, Mississippi sits at 669, placing it squarely in the "fair" credit tier. Louisiana, Alabama, and Arkansas are grouped just above it, all under 680. The state-by-state range, 669 to 723 according to the most recent 2026 aggregated data, means a resident of the lowest-scoring state starts out statistically disadvantaged on mortgage rates, auto loans, and credit card approvals compared to someone in the highest-scoring state.

Here is a snapshot of where states land:

| Tier | States | Avg. Score Range | |---|---|---| | Top 5 | MN, VT, WI, NH, SD | 730-742 | | Above Average | MA, WA, OR, CO, HI | 720-729 | | National Average | Most of the Midwest, Mid-Atlantic | 710-719 | | Below Average | TX, FL, GA, AZ, NM | 695-709 | | Bottom 5 | AL, AR, LA, OK, MS | 669-684 |

These numbers reflect late-2025 bureau data, the most recent state-level figures available as of September 2026.

Why the Gap Exists

Credit scores do not form in a vacuum. They reflect income stability, debt load, housing costs, and financial literacy, all of which vary sharply by geography.

States with higher median incomes and lower unemployment tend to produce higher credit scores. Minnesota's median household income is roughly 20% above Mississippi's. When people can meet monthly obligations consistently, scores rise. When incomes are thin and expenses consume a higher share of take-home pay, missed payments and high utilization drag scores down.

Cost of living plays a role too, though it cuts both ways. High-cost states like California and New York sit in the middle of the pack, not the top, because high incomes are offset by high debt loads. If you are stretching a $90,000 salary across a $3,200 monthly rent in Los Angeles, your credit utilization looks different than someone earning $70,000 in Des Moines. Our breakdown of the true cost of living in high-tax states explains how gross income and spendable income diverge dramatically depending on where you live.

Credit Scores by Age and Generation

Age is one of the strongest predictors of credit score. The pattern is consistent: the older the borrower, the higher the average score.

Generation Z (ages roughly 18 to 27 in 2026) carries an average credit score of approximately 680, which falls in the "fair" range. At age 20, the average drops closer to 662. By age 25, it climbs to around 674. By age 30, most consumers have crossed into the "good" range at 690 or above.

Baby Boomers average around 745, and the Silent Generation exceeds 760. This is not a generational character flaw or virtue. It reflects the mathematical reality that FICO and VantageScore models heavily weight length of credit history, which younger consumers simply have not had time to build.

The New Credit Score Models in 2026

FICO Score 10 T and VantageScore 4.0 continue their broader rollout across lenders in 2026. Both models place greater weight on trended data, meaning they look at whether your balances are rising or falling over time, not just where they stand today. A borrower who consistently pays down balances scores better than one who carries the same balance month after month, even if the snapshot looks identical.

Fannie Mae and Freddie Mac completed their transition to requiring both FICO 10 T and VantageScore 4.0 for conforming mortgage originations. This matters because the new models also incorporate rental payment history when it is reported, a change that could lift scores for younger renters and first-time homebuyers. The practical effect on state averages will take a few years to show up fully in aggregated data.

For retirees tracking credit alongside retirement finances, your credit score affects more than loans. It influences insurance premiums in many states and even rental applications. Our guide to the best states for retirees to avoid taxes pairs well with this data since low-tax states often reduce the financial pressure that leads to missed payments.

You can also use our state comparison calculator to see how the combination of credit-driven borrowing costs and state tax burdens affects your actual take-home financial position.

Key Takeaways

• The national average credit score is 713 to 714 as of early 2026, down one point from the prior year, with Minnesota at 742 and Mississippi at 669 defining the extremes.
• Gen Z averages approximately 680, rising roughly 10 to 12 points per five years of age as credit history lengthens.
• The 2026 mortgage market now requires both FICO 10 T and VantageScore 4.0 for conforming loans, with trended payment behavior and rental history factoring more heavily than before.

Compare your state's credit profile alongside its tax burden and cost of living at liveordiehere.com to see the full financial picture before making a move.