Despite the fact that Americans are suffering numerous obstacles as a result of the coronavirus pandemic, consumers are believed to be managing their credit properly, which is surprising.
According to Experian’s 12th annual State of Credit report, the average credit score in the United States has risen seven points from 2020, to 695, the greatest level in more than 13 years.
Many individuals were managing their credit fairly effectively before the pandemic, according to the survey. Consumers appeared to be in decent financial shape even after the adoption of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
“We believe credit education plays an important role in driving financial inclusion and helping consumers reach their fullest potential,” said Alex Lintner, President Experian Consumer Information Services.
Also remarkable is the fact that many Americans were forced to stay at home during the start of the epidemic, resulting in record savings, reduced unsecured and total debt, lower credit use rates, and fewer missed payments.
The first HOPE Financial Wellness Index was launched this year by Experian and Operation Hope, the nation’s biggest nonprofit dedicated to increasing financial literacy. The goal of the Index is to bring attention to the average credit score in each state and locality.
States with the highest average credit scores
Minnesota – 726
Vermont – 719
New Hampshire – 718
Washington – 717
Massachusetts – 716
Here are the states with the lowest scores
Mississippi – 666
Louisiana – 669
Alabama – 672
Oklahoma – 672
Texas – 673