How do you stand against average credit score by state, age, salary?

We all have a vague understanding about credit score, credit reports and credit reporting agencies. Free credit monitoring services exist to check credit score. If the credit score number is high enough, then you have a good credit. It ranges from 300 to 850.

If you are at the lower end of the scale, you have a worse credit worthiness. Most lenders will shun you away or tack on a huge interest rate for the repayment risk they are taking.

Most friends ask me, hey I understand everything, but where do I stand against average credit? There is no uncomplicated answer to the question, “What is a good score in credit information report and where am I in the picture against the rest?”

Let’s take a look at different cuts of data, and compare credit scores across different demographics. These are interesting data that helps you figure out where you stand in terms of peers in your same demographic.

Average Score of Credit by range of Age Groups

Age Group Average Score of Credit
20 to 29 661
30 to 39 672
40 to 49 683
50 to 59 705
60 and above 750

Average Age by Credit Score Tier

Credit Score Tier Average Age
Excellent 56
Good 49
Fair/Limited 47
Bad 42

Source : Experian

 

Average VantageScore by State

State Average VantageScore
Alabama 654
Alaska 668
Arizona 669
Arkansas 657
California 680
Colorado 688
Connecticut 690
Washington D.C. 670
Delaware 672
Florida 668
Georgia 654
Hawaii 693
Idaho 681
Illinois 683
Indiana 667
Iowa 695
Kansas 680
Kentucky 663
Louisiana 650
Maine 689
Maryland 672
Massachusetts 699
Michigan 677
Minnesota 709
Mississippi 647
Missouri 675
Montana 689
Nebraska 695
Nevada 655
New Hampshire 701
New Jersey 686
New Mexico 659
New York 688
North Carolina 686
North Dakota 697
Ohio 678
Oklahoma 656
Oregon 688
Pennsylvania 687
Rhode Island 687
South Carolina 657
South Dakota 700
Tennessee 662
Utah 683
Virginia 680
Vermont 702
Washington 693
West Virginia 658
Wisconsin 696
Wyoming 678
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Source : Experian

 

Average Score of Credit by Annual Income

Yearly Income Average Score of Credit
$50K to $75K 738
$30K to $50K 644
< $30K 591

Source : Wallethub

6 Factors That Influence Average Credit Score

You are now empowered with a lot of statistics at your fingertip to juxtapose your score of credit. What is the next best action for you? You need to understand how to upgrade your credit score. Start with basic comprehension on what components make up the credit score and their respective weights.

There are 6 major factors that influence average credit score

  1. History of timely payments: Checks your timeliness of paying back credit in the past
  2. Total amount of loan: the total dollar amount that you need to repay
  3. New recent credits: checks how many new credit accounts you’ve opened in the most recent time (avoids credit rotation)
  4. Mix of Credit types: the types of credit accounts that show up in your report. Most of us may have credit cards, auto loans or mortgages showing up here
  5. Utilization of credit ratio: the share of credit you’ve spent against the total credit given to you. Keep it under 30% to have the best result. If you are aiming for a really good score, have it less than 10%. Mine always stays at 1% as I’m shooting for the perfect 800!
  6. History of credit length: determines what is your oldest account and your average age of all accounts. Do not close your oldest cards since this factor gets a hit and your credit score drops. Downgrade to a no annual fee card version as much as possible instead of closing.
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Credit Score

Credit Monitoring Significance

If you listen to sane people, they will ask you to pay close attention to your credit score. This does not just mean you check your score alone. You will have a close on any errors in your report. Also, look at why the scores change and take rectifying actions to improve them constantly. If you find any errors, report it to credit reporting agencies immediately.

You need to monitor the major reports of credit closely, Equifax (got hacked recently and in a class action lawsuit), Experian (heavily used by Chase) and TransUnion (heavily used by Bank of America). There are 3 different methods you can opt for

  1. Order free copies once yearly from AnnualCreditReports and take a look
  2. Free Credit Monitoring Service like CreditKarma, Chase Credit Journey and CreditSesame.
  3. Monthly subscription monitoring service – Use directly the credit reporting agencies paid service (highly recommended) or Lifelock

Finally, you can choose to go free or pay up, but never ignore the information. Any error on the report needs to be reported quickly to make it doesn’t destroy your credit. Knowledge of knowing what to do when it goes against you is critical. Now, I believe you are trained enough to spot the defects and improve your average credit score to good and eventually to excellent range.

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26 thoughts on “How do you stand against average credit score by state, age, salary?”

  1. Great article for a data nerd like me

    Reply
  2. Useful information. Fortunate me I found your website by chance. I bookmarked it now.

    Reply
  3. Wow, that’s what I was searching for, what a data for credit enthusiasts!

    Reply
  4. It’s great to understand I am above the average credit score for my state, age and salary! Yayyyy!!! 😀

    Reply
  5. Great stats. Really loved it!

    Reply
  6. Greetings from California! I think I am doing above average for my state from the stats you are showing.

    Reply
  7. I am glad to know that I am at least on par with fellow Americans in my state and age group. Thanks for sharing.

    Reply
  8. WOW just what I was looking for. Came here by searching for credit score by state

    Reply
  9. Pretty sure it’s a good weekend read for anyone.
    Many thanks for sharing!

    Reply
  10. Hello there, I discovered your blog by searching for it on Google and your site came up, it looks good. I’ve bookmarked it.

    Reply
  11. Great article with complete data. Thanks!

    Reply
  12. That’s great to know I’m well above average for my state.

    Reply
  13. Thanks for showing me clearly where I stand with my fellow state mates

    Reply

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