Minnesota Boasts Country’s Best Average Credit Score

(KNSI) – It turns out that residents of the Land of 10,000 Lakes do not like to spend much time being underwater.

Minnesota has the best average credit score of any state in the country, according to personal finance website WalletHub. We check in at 725.3, nearly four points above second-place New Hampshire. Other states within striking distance are Vermont, Massachusetts, Wisconsin, and North Dakota.

Analyst Cassandra Happe says, “It’s not very surprising that Minnesotans have the highest average credit score at 725, considering the state’s stable economy, good job market, and relatively low household debt.”

She adds, “These high scores are a sign that even though many Americans are struggling with financial obstacles, they are still prioritizing their debts.”

Most lenders consider a score of 700 to be good. In the case of personal credit, keeping up with the Joneses is something for Minnesotans to aspire to. Your credit score is based on a combination of factors, including income, overall debt level, payment history, and credit utilization. WalletHub has some tips to improve your score.

1.) Keep an eye on your credit report. You have the right to request a copy of your report from each of the three credit bureaus. There are also monitoring websites and services as well.

2.) Only apply for a new card or loan when you are reasonably sure it will be required. Once you submit the form, it will drop your credit score.

3.) Use a secured credit card. You put up a refundable deposit, which doubles as your spending limit. That allows you to build up your credit history and prove you can make payments on time, which will eventually open up offers for a traditional card.

4.) Keep your overall spending low. To get over 800, you’ll need to show you’re utilizing under 10% of your credit limit.

5.) Do not close accounts that you have stopped using.

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