Summary
A recent study by Fair Isaac Corporation (FICO) found that states with lower average credit scores have seen more significant declines compared to states with higher scores. The credit score, which FICO created, is used to assess if borrowers are likely to repay their debts. Mississippi has the lowest average credit score in the U.S., while Minnesota has the highest.
Key Facts
- FICO reported that states with lower average credit scores have seen bigger drops lately than those with higher scores.
- A credit score estimates a person's ability to repay debts, ranging from 300 to 850.
- A low credit score can make it hard to get loans for buying a home or car.
- Mississippi has the lowest average credit score at 677.
- Minnesota has the highest average credit score at 743.
- An individual's credit score is influenced by factors like payment history and amounts owed.
- Rising inflation in 2022 affected many Americans financially, increasing credit card debt.
- Different lenders have specific credit score requirements for loan eligibility.
