Learn 10 States With The Best And Worst Credit Scores

10 States with the Worst Credit Scores

The ten states with the lowest credit scores had an average median income of $50,850 in 2018, which was $11,087 less than the national median income. 

According to National Mortgage Database data, the states’ average mortgage delinquency rate was 1.09%, compared to 0.80% nationally. 

1. Mississippi – 662

Since July 2020, Mississippi has had the lowest credit score in the country. According to Census data, it had the second-lowest median income ($44,717) and the worst mortgage delinquency rate (1.50%), of the ten states with the worst credit scores.

2. Louisiana – 667

Louisiana has the second-worst credit score. According to Census data, it had the fourth-lowest median income ($47,905) of the ten states with the lowest credit scores. According to National Mortgage Database data, it also had a 1.3% mortgage default rate, which was half a percentage point more than the national average.

3. Alabama – 670

Alabama earned the third-worst credit score. According to Census data, its median income was $49,861, far below the national average. According to National Mortgage Database data, it also had a mortgage delinquent rate of 1.30%, which was 0.50% greater than the national mortgage delinquency rate.

4. Arkansas – 671

According to Census data, Arkansas, another southern state with a low median income of $47,062, had one of the lowest credit scores. According to credit data from the National Mortgage Database and the Urban Institute, its default rates for mortgages, auto loans, and credit cards were all higher than the national norms.

5. Oklahoma – 671

According to Urban Institute credit data, 37% of Oklahoma citizens have debt in collections, compared to 29% nationally.

6. Texas – 673

Despite having a median income ($60,629) that was close to the national median, Texas had one of the lowest average credit scores. According to Urban Institute credit data, one reason for this could be that 23% of its citizens have medical debt in collections, compared to 15% nationally.

7. Georgia – 675

According to Census data, Georgia had the second-highest median income of the states with the worst credit scores at $58,756. According to Urban Institute credit data, 37% of Georgia residents have debt in collections, compared to 29% nationally.