The average American has a pretty decent credit score. The average Minnesota resident has an even better one. For the third year in a row, Minnesota residents have the highest credit scores in the U.S. with an average VantageScore credit score of 726, a recent report from WalletHub finds. Mississippi residents have the lowest average credit score of 672, but despite the 54-point difference, both the highest and lowest average scores qualify as “good,” according to VantageScore’s model. A couple of factors may explain why Minnesota residents tend to have higher credit scores. For one, Minnesotans carry relatively low average credit card balances, compared with the rest of the U.S., Bankrate reports. This may lead residents to have lower credit utilization rates, which is “highly influential” in how VantageScores are calculated. Your credit utilization rate is the amount of available credit you use at a given time. Additionally, Minnesota has one of the lowest average credit card delinquency rates in the country, according to a separate WalletHub report. Because payment history is “extremely influential” in how VantageScores are calculated, consistent on-time payments likely boost scores in this state. Here’s a look at the average credit score in every state. Breaking down credit scores by state. (CNBC) Alabama: 680 Alaska: 705 Arizona: 698 Arkansas: 683 California: 705 Colorado: 714 Connecticut: 711 Delaware: 701 Florida: 694 Georgia: 682 Hawaii: 715 Idaho: 715 Illinois: 705 Indiana: 698 Iowa: 714 Kansas: 707 Kentucky: 689 Louisiana: 677 Maine: 715 Maryland: 701 Massachusetts: 718 Michigan: 704 Minnesota: 726 Mississippi: 672 Missouri: 700 Montana: 715 Nebraska: 714 Nevada: 687 New Hampshire: 723 New Jersey: 710 New Mexico: 690 New York: 706 North Carolina: 696 North Dakota: 717 Ohio: 701 Oklahoma: 683 Oregon: 715 Pennsylvania: 708 Rhode Island: 709 South Carolina: 688 South Dakota: 718 Tennessee: 692 Texas: 680 Utah: 712 Vermont: 722 Virginia: 708 Washington: 718 West Virginia: 689 Wisconsin: 720 Wyoming: 708 Your credit score doesn’t have to be perfect You don’t need a perfect 850 credit score to earn the best financial benefits. If you boost your score to the “excellent” range, though, you can snag the most favorable interest rates from lenders. That requires a FICO score of at least 800 and a VantageScore of at least 781, according to Experian. Boosting your credit score is relatively straightforward. As long as you consistently pay your credit card bills on time and try to keep your balances low, you can maintain a healthy credit score and gradually improve it, financial experts say. “Even if you have a bad credit score, time is the best healer,” Abdul A. Rasheed, a University of Texas at Arlington professor, said in WalletHub’s average credit score report. “Roughly three years of good management of your finances will get you back on track.” Ready to boost your income and career? Don’t miss our special Black Friday offer: 55% off all Smarter by CNBC Make It online courses. Learn how to earn passive income online, master your money, ace your job interview and salary negotiations, and become an effective communicator. Use coupon code THANKS24 to get the best deal of the season—offer valid 11/25/24 through 12/2/24.