These 10 States Have the Lowest Average Credit Scores

A low credit score could make it harder for you to get approved for a loan or credit card. 

It's good practice to know where your credit stands. By reviewing your credit report every year and monitoring your credit score, you'll be better informed so you can make critical financial decisions. 

A higher credit score is ideal because having a higher score proves your creditworthiness and can make it easier to qualify for attractive financial products like low-interest rate loans. But many Americans have low credit scores.

If you have a low credit score, don't feel defeated. The good news is there are steps you can take to improve your score and set yourself up for better financial success. 

The national average credit score is 714 

Have you ever thought about how consumer credit scores differ around the country? 

The 2021 Experian Consumer Credit Review examined average FICO credit scores around the country and looked at averages by state. Data was collected during Q3 2021. 

The national average FICO score was 714. However, many states had lower average scores -- and the top 10 states with the lowest average scores all fell under 700.  

Top 10 states for the lowest average credit scores 

According to Experian data, these states have the lowest average credit scores. 

• Mississippi: 681
• Louisiana: 689
• Alabama: 691
• Oklahoma: 692
• Texas: 692
• South Carolina: 693
• Georgia: 693
• Arkansas: 694
• New Mexico: 699
• West Virginia: 699

While these aren't the highest scores, all these average scores meet a good credit rating. 

A FICO score between 670 to 739 is considered good. 

Your credit score matters

If you have little credit or a low credit score, don't dismiss it. Ignoring your credit score or financial situation will make it harder for you to make positive changes.

If you apply for a loan or a credit card, you can expect your credit to be checked, and a low score could mean you get denied. 

It'll be easier to qualify for a lower interest rate, better loan terms, and get approval with a higher credit score, which is why it's smart to pay attention to your credit score and make an effort to improve it. While it takes time to increase your credit score, it's possible.

Tips for improving your credit score 

So, your credit score needs work? Here are three suggestions that may help you make progress: 

Review your credit report and dispute errors. Your credit report gives you valuable insight. Mistakes can happen, so it's possible there are errors on your report. If you notice any inaccuracies, dispute them so the inaccuracies don't impact your score. 

Pay all your bills on time. Missed and late payments result in negative marks on your credit report and can lower your score, as the highest percentage of your score is tied to making on-time payments. Make it a priority to pay your bills on time every month. 

Get rid of your debt. Having a lot of debt can negatively impact your credit score. Try not to use all of your available credit. If you have existing debt, make a plan to pay it down. You can improve your score and feel better knowing that you owe less money to creditors. 

Just because you have a low credit score now doesn't mean you have to live with a low credit score forever. Building credit and raising your credit score takes time. Be patient and continue to work toward your personal finance goals.