We're Number One: Minnesota has the highest average credit score in the U.S. and the only state above "very good"

Congrats Minnesota. You can borrow whatever you need. You have the highest average credit score in America. Credit scores have a major impact on your ability to secure a loan, rent an apartment or even get a job.

A new list from Marketwatch.com tracks state-by-state numbers and Minnesota is at the top with an average score of 742. Anything above 740 is considered "very good" with over 800 being "exceptional".

The average score nationwide is 715 according to the credit service Experian . The average FICO credit score by state it taken from Experian’s 2023 Consumer Credit Review.

Joining Minnesota at the top of the credit heap are Vermont and Wisconsin at 737. New Hampshire is at 736 and Washington is at 735.

Notably, the leading states are primarily located in the northern United States, with Washington the only state from the Pacific Northwest. Minnesota stands out as the sole state with a credit rating categorized as “very good,” falling within the range of 740 to 799.

At the other end of the spectrum is the Deep South. Mississippi is dead last with an average score of 680, followed by Louisiana at 690 and Alabama at 692. Georgia and Texas both score an average of 695.

Despite those numbers falling within the “good” range of 670 to 739, these scores signify higher risk for lenders. While income does not directly determine credit scores, it can influence one’s ability to repay debts on time and affect credit utilization. And Alabama, Louisiana and Mississippi have among the lowest average incomes nationwide.

It's not all good news on the credit front, even if your state and you have some high scores. Consumers are increasingly struggling to pay their credit card bills, raising concerns about severe delinquencies spiraling and sapping consumer spending. Those delinquencies can really hurt credit scores.

The share of credit card debt that’s more than 90 days overdue rose to 10.7% during the first quarter, a 12-year high, according to the Federal Reserve Bank of New York’s report on first-quarter household debt.

A year ago severe delinquencies totaled only 8.2% of credit card debt. The first-quarter jump in severe delinquencies was the biggest since 2012. Meanwhile total credit card debt rose to $1.12 trillion from just under $1 trillion a year ago.

Those in their 20s and 30s are having the most difficulty paying their credit card bills. Those age groups typically have a mix of less earnings power and lower savings.