The 10 States With The Highest (and Lowest) Credit Scores

How does your credit score stack up against other consumers in your state, According to Experian, the average national VantageScore credit score value for 2017 was 675 - which would put you well above average in Mississippi, well below average in Minnesota, and in the "fair" credit range nationally. Scroll down to see the 10 states with the highest and lowest average credit scores.

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What is a credit score, When you apply for a credit card, a loan, or even insurance, lenders check your credit score. This number is used to evaluate your creditworthiness. Your creditworthiness basically is an estimate of how likely you are to repay your financial commitments. Why is it important, Your credit score can impact everything from your ability to get a loan or a credit card, to rent an apartment, to get a mortgage or even auto insurance. Your credit score can also play a role in determining your interest rates.

The commonly used FICO credit score ranges from 350 (very unlikely to repay) to 850 (very likely to repay). Often a 720 or higher is considered a strong FICO credit score, but different lenders have different standards. I heard you can have multiple credit scores. Yes. You can have different credit scores depending on which credit reports and which scoring models are used. There are three major credit reporting agencies that provide credit reports: Experian, Equifax, and TransUnion. There are also different credit score models that are tailored to different industries and therefore produce different credit scores. For example, your auto lender will likely use a different score model than your credit card company. What factors make up my credit score, Your credit score is calculated using information from your credit report. Some key factors that are used in credit scoring models are explained below.

What is a Credit Report, Your credit report is a record of your credit activity and credit history. It includes the names of companies that have extended you credit and/or loans, as well as the credit limits and loan amounts. Your payment history is also part of this record. If you have delinquent accounts, bankruptcies, foreclosures or lawsuits, these can also be found in your credit report.

How does information get on my credit report and is it updated on a regular basis, Every month, lenders submit updates on your credit profile to at least one of the three credit reporting companies—TransUnion, Equifax and Experian. Since lenders do not necessarily report to all three companies, the information on your credit reports may vary. It is also true that lenders report at different times of the month, a factor that might contribute to slight differences in your reports, and therefore your credit scores, at any given time.

Does my credit report contain information that is not related to credit, Yes. Your credit report also serves as an archive for certain personal information, such as public records, your current and former address(es), names and employers. Why is my credit report necessary, What purpose does it serve, When you apply for credit (a mortgage or car loan, even a new credit card), lenders need a way to gage whether or not you’re a safe bet. Your credit report includes a record of your financial reliability. How long does negative information stay on my credit report,

Typically, the negative information on your credit report tends to fall off after seven years, or 10 if you’ve been through bankruptcy. Positive information remains on your report for an average of 10 years from the day its corresponding account is closed. This information applies to accounts like mortgages and car loans, which have fixed terms on the number of years for repayment. For revolving accounts, such as credit cards, your positive history will stay on your report for as long as the account is active.

Is there a place where I can explain some of the negative information on my credit report, Absolutely. You have the right to attach a statement to your credit report that explains why, for example, you have a few late payments on your record. This statement will be provided to anyone requesting your report. Life is complicated, and this statement might convince an otherwise apprehensive lender to give you a chance.

The elusive 820 credit score: Is it worth pursuing, Creditors consider applicants with an 820 credit score as “golden.” If you achieve this, credit is widely available to you, and you’ll pay less for it. In some cases, much less. 1. Mortgage rates for those with top-level credit run about 1.5 percent lower than those for borrowers with fair credit.

2. Interest rates on five-year auto loans run approximately 11 percent less for borrowers with excellent credit than those with poor credit scores. 3. Credit card rates typically run between 13 and 23 percent, depending on your credit score. An 820 credit score is a thing of beauty, the magical key that opens a world of lower mortgage rates and easier loan applications.

At first, it may seem that an 820 credit score is a mythical goal, something only achieved by misers, hermits and CPAs. The reality is that everyone has a chance to obtain high credit scores, and it’s actually easier than it seems. When we talk about and 820 credit score what we’re really discussing is the FICO system, the pioneering credit score concept developed by the Fair Isaac Corporation. The idea is to uniformly measure the use of credit.