With financial improvement topping many New Year’s resolution lists and credit scores declining in every state over the past year, the personal-finance company WalletHub has released its updated report on the States With the Largest Credit Score Decreases. The findings highlight where consumers may be facing the greatest financial risk.
| Largest Decreases | Smallest Decreases |
| 1. Missouri | 41. Tennessee |
| 2. Georgia | 42. Vermont |
| 3. Delaware | 43. Arkansas |
| 4. Kansas | 44. Wyoming |
| 5. Minnesota | 45. Alaska |
| 6. Florida | 46. Maine |
| 7. Montana | 47. New Hampshire |
| 8. West Virginia | 48. Iowa |
| 9. Texas | 49. North Dakota |
| 10. Arizona | 50. Utah |
For the full report and to see where your state ranks, please visit:
https://wallethub.com/edu/
“If your credit score is low or has recently dropped, the quickest and best way to improve your score is to use a credit card regularly and pay the balance on time and in full every month. Even if you have a credit card that you don’t actively use, it will still gradually raise your credit score every billing period, as long as you keep the account in good standing. You should also strive to keep your credit utilization below 30% of your credit limit and work to actively pay down any long-term debts you have.”
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“Missouri residents had the largest average credit score decrease between Q3 2024 and Q3 2025, slipping from an average of 664 to a score of 654. Missourians average credit score of 654, which is in the fair credit range, ranks 38th in the nation.”
- Chip Lupo, WalletHub Writer and Analyst
Expert Commentary
What are the best ways to improve your credit score?
“Pay every bill on time, every time. Keep your revolving credit utilization close to 0% by paying your credit card balances in full as frequently as you can, at least weekly. Avoid opening multiple new accounts at once and review your credit report for errors.”
Brian Page - M.Ed. – Accredited Financial Counselor®, Fair Play® Domestic Labor Specialist
“A credit score is determined by key factors such as payment history, credit utilization, the length of credit history, and others. Payment history carries the greatest weight, so making on-time payments is essential for maintaining a strong score and improving a low one. Credit utilization – how much of your available credit you use – also plays an important role; avoiding maxing out your credit limit and keeping balances low can significantly boost your score. One strategy is to use multiple credit cards instead of relying on a single card, allowing you to spread your spending and keep utilization low on each card. However, having or applying for too many credit cards can also hurt your score. The key is to maintain a balanced and disciplined approach to credit use and management.”
Guan Jun Wang, Ph.D. – Professor, Union University
How important are budgeting skills to having a good credit score?
“Budgeting is foundational to long-term credit success. Having a monthly spending plan that you actively manage and track is one of the most powerful tools for staying on course financially. When a new spending opportunity arises that would require borrowing, instead of asking, ‘Can I afford this?’ a more powerful question is, ‘Do I truly need this?’ By consistently spending less than you earn and living within your means, you greatly increase your ability to maintain an excellent credit score – while also preserving the flexibility to take on new debt when it truly serves your long-term goals.”
Todd Chipman – Instructor, Southeast Community College
“Whenever you use credit which is essentially borrowed money, you should always have a plan to pay it back, and that requires budgeting. Knowing your income and expenses helps you live within your means, avoid overspending, and make payments on time. Good budgeting skills prevent high balances and missed payments, both of which are crucial for maintaining a strong credit score.”
Guan Jun Wang, Ph.D. – Professor, Union University
What is the best way to reduce the impact of inflation on your credit score?
“Inflation does not directly affect your credit score. However, rising living costs can indirectly damage credit by increasing reliance on credit and raising credit utilization. Consider a simple real-world example. Suppose you qualified for a mortgage using a debt-to-income ratio of 40%, which is already on the high end. Your housing payment includes a homeowner’s insurance premium paid through escrow. In recent years, homeowner’s insurance premiums have surged. The Consumer Federation of America (CFA) reports that average premiums have increased by 24% over the past three years. As a result, the housing payment you could afford three years ago may now exceed what your income (often rising more slowly than inflation) can comfortably support. This leads to an important rule of thumb I teach my students: Never purchase a home at the maximum amount for which you are pre-approved. Always leave room in your budget for unexpected and inflation-driven expenses, which inevitably arise.”
Todd Chipman – Instructor, Southeast Community College
“Always keep in mind that when you use credit (borrowed money), you should have a clear payment plan. If you do not think you will be able to pay the balance in the future, avoid using credit. Setting a realistic budget and spending limit can help prevent carrying high balances, which protects your credit score even during periods of high inflation.”
Guan Jun Wang, Ph.D. – Professor, Union University
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