The Top 3 US States With The Highest Average Credit Scores

Relying too heavily on credit is one of the worst personal finance mistakes you can make, but what's even worse is not knowing how to manage it. FICO scores, the most commonly used credit rating in the country, show lenders how trustworthy you are and give them an idea of how you handle money. Scores range from 300 to 850, and where you fall on this scale can determine whether you qualify for things like credit cards and auto loans and your interest rates when you borrow money.

While credit scores reflect individual financial choices, a state's average paints a larger picture of its residents' financial behaviour. According to Experian's 2024 data, Minnesota residents have the best credit, with a state average of 742. Wisconsin is a close second with an average of 738, and Vermont is third at 737. The FICO scores are divided into five tiers, with exceptional scores ranging from 800 to 850 and any lower than 580 considered poor. Minnesota remains the only state to sit in the very good range of 740 to 799, but all three states score well above the national average of 715.

This positioning means their residents can enjoy the perks that come with higher scores, such as better insurance rates, more attractive rental applications, and cheaper interest rates on loans. Some financial decisions matter more than others, and understanding what specific factors affect credit scores is why Minnesota, Wisconsin, and Vermont residents outperform the rest of the country.

Minnesota, Wisconsin, and Vermont residents don't lead the country's credit score averages because they carry a lot of debt, but rather because of how well they manage it. FICO scores are affected by five main factors: length of credit, payment history, total debt owed, credit mix, and new credit lines. So, while the state's economic factors, like inflation, may affect how much its residents rely on credit, the residents' financial behaviour and decisions are what really drive the high scores.

In Wisconsin, for instance, Experian reports the average resident held a credit card balance of $5,370 in 2024. Meanwhile, the state's Department of Financial Institutions reported a low delinquency rate of 0.62% as of March 2025. Wisconsinites clearly rely on credit cards, but they manage that with timely payments to easily avoid damage to their scores. Housing costs also play a huge role, with mortgages taking up to 70% of the national household debt according to the Federal Reserve Bank of New York. In all three states, however, the Madison Trust reports the share of median household income spent on housing remains in the moderate range — between 18% and 20% — which means residents aren't burdened by the cost of housing so much that they can't afford to satisfy other credit obligations.

There are many simple tricks for improving your credit score, but Minnesota, Wisconsin, and Vermont illustrate how smaller, consistent actions actually go the furthest. Payment history makes up the largest share of your FICO score, so late payments — which are some of the common credit card mistakes to avoid — can have a lasting effect on your score. Track all of your outstanding payments and set up reminders for when they're due to make sure you pay on time. 

Keeping your credit card balance low is also helpful. Experian reports Vermont residents have some of the lowest credit card utilisation rates in the country at 26%. Keeping balances low tells lenders that you use credit regularly, but not so much that you completely rely on it. 

Additionally, keep your credit mix diverse: Having more than one type of credit shows that you're better at managing your finances. Small actions like applying for different types of credit are more likely to improve your credit score than avoiding credit altogether. 

Finally, one low-effort trick for boosting your score is to keep your oldest account open. The length of time you've had credit accounts open makes up a 15% share of what determines your FICO score. So, we recommend hanging on to your oldest credit card. Even if you're no longer satisfied with it, it's better to upgrade the card instead of closing and opening a new account altogether.