With household debt on the rise, fueled by inflation and record-high interest rates, the personal-finance company WalletHub today released its report on the States with the Highest & Lowest Credit Scores in 2026 to illustrate how people in different parts of the country are holding up financially. You can check out the key findings below, followed by some WalletHub commentary.
Readers who are curious to know how they compare with the average person in their state can access their free credit score by joining the WalletHub community.
| Highest Credit Scores | Lowest Credit Scores |
| 1. Minnesota (723) | 41. South Carolina (685) |
| 2. New Hampshire (721) | 42. Nevada (685) |
| 3. Vermont (720) | 43. West Virginia (685) |
| 4. Wisconsin (718) | 44. Arkansas (681) |
| 5. Washington (716) | 45. Oklahoma (680) |
| 6. Massachusetts (715) | 46. Georgia (678) |
| 7. North Dakota (714) | 47. Texas (677) |
| 8. Montana (714) | 48. Alabama (677) |
| 9. South Dakota (713) | 49. Louisiana (673) |
| 10. Hawaii (713) | 50. Mississippi (669) |
For the full report and to see where your state ranks, please visit:
https://wallethub.com/edu/
“The average credit score by state ranges anywhere from 669, which is in the middle of the fair credit range, to 723, which is well into the good credit range. That’s a 54-point difference. Moving to one of the top states may help you increase your own credit score, as they tend to have high average incomes, low unemployment rates and other positive economic factors that make it easier for residents to pay their creditors on time and limit their borrowing.”
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“The states with the highest credit scores in 2026 are Minnesota (723), New Hampshire (721) and Vermont (720). All of these states have an average score well into the good credit range, which starts at 700. They are also around halfway to the excellent credit range, which starts at 750.”
- Chip Lupo, WalletHub Analyst
Expert Commentary
What are the best ways to build credit?
“An important idea to remember is that credit and your credit score ultimately reflect your riskiness and trustworthiness as a borrower. To build strong credit, you must show potential lenders that if you borrow, you will always pay back on time and never miss a payment. To do this, keep at least one credit account (likely a revolving credit account, aka a credit card) open, and automate the monthly payment from your checking account to your credit card balance so that you never miss a payment (note that 35% of your credit score is based on payment history). Your credit utilization, the amount you owe relative to your available credit limit, accounts for 30% of your credit score. At minimum, keep your credit utilization below 30% of available credit; ideally, keep it below 10%. If you occasionally ask your credit card issuer to increase your credit limit, and you simultaneously keep your spending constant, your utilization will fall and your score may increase. Finally, since 15% of your credit score is based on the length of your credit history, keep older accounts and cards open, even if you rarely use them.”
Eric Young – Senior Instructor, Loyola Marymount University
“The best way to build credit is to start early and be consistent! And, starting early does not necessarily mean being over the age of eighteen. Often, you can be added to a parent’s, grandparent’s, or other family member’s account. Many lenders offer this option. By doing this, you can gain the benefit of their account activity being reported under your name. One caveat is just as the account holder must trust you; you must also trust them! It’s important to ensure the primary account holder maintains excellent payment habits, as negative activity is also reported. Additionally, a secured credit card or a secured loan is another avenue that is proven. In fact, I used this with both of my children. By allowing the lender to have security (your money) they have basically no monetary risk. While it does cost you the interest on any charges, the upside of establishing your credit far outweighs the financial costs. And you may be able to avoid interest by paying the balance in full each month, while still building credit. Once established, be consistent. This means never missing a payment or being late. The slightest bobble could likely have lingering effects, especially for those just establishing, or recently established.”
Dr. Roy Baker Jr, CPA – Instructor, Stark State College
What are the best strategies people can use to minimize the impact of inflation on their credit scores?
“To answer this, consider first how inflation might affect you. Inflation erodes purchasing power and makes goods more expensive, which could increase some people’s credit utilization rate, as they rely on their cards and debt to cover increasingly expensive everyday purchases. Also, inflation can cause interest rates on adjustable-rate debt to increase, putting a higher burden on borrowers who carry balances. To defend against this, borrowers can either preemptively request a credit limit increase, or make more frequent payments on their cards; doing this can help credit utilization rates. Borrowers can also, wherever possible, favor fixed-rate debt over adjustable-rate debt. Finally, the risk of inflation underscores the need to create budgets with realistic spending projections (not just a ‘carry over last year’s numbers’ budget), to track spending consistently, and to have a cash buffer in an emergency savings account.”
Eric Young – Senior Instructor, Loyola Marymount University
“Inflation affects countless aspects of our life; some that we may not even think about, like our credit score. As prices go up, our purchasing power decreases. It costs us more for utilities, more at the grocery store, more for fuel, etc. By narrowing the margin of our available income, we may not have the ability to keep up with our debt payments. We sometimes must make choices on what to pay and what not to pay. Credit cards may be our first choice to skip a payment if we are struggling to pay bills. And we may think that this is less impactful than an automobile installment, a late or missed payment is still a late or missed payment. Any late or missed payment can damage your score. The simple proactive fix is to watch your budget and live below your means. This provides flexibility to absorb higher expenses. But, if you find yourself in a high-risk situation where making payments may be difficult, contact the lender. The lender wants to continue to be your partner. There may be options available. But they can’t help if they don’t know what the problem is. Additionally, if you have multiple sources of debt, pursuing a consolidation loan may help to reduce your monthly payments and help you manage your debt overall. Many major banks and credit unions offer online debt-consolidation calculators to help you make the best decision for your particular needs.”
Dr. Roy Baker Jr, CPA – Instructor, Stark State College
What are the most common mistakes to avoid when trying to improve your credit score?
“A common, and very damaging, mistake is to focus on cosmetic fixes (like opening new accounts or engaging in balance transfers) instead of painfully addressing excessive spending, high balances, and/or missed payment histories. It is also common to see people pay only the minimum balance due; while this does keep the account current (and is preferable to missing a payment), paying only the minimum due can quickly trap people in a situation where interest payments are suffocating, credit utilization soars, and paying off the balance becomes increasingly difficult. When it comes to credit (like many things in life), it is far easier to build and maintain it than it is to fix it when it breaks.”
Eric Young – Senior Instructor, Loyola Marymount University
“If our credit score is low, either from just getting established, or from making a mistake, it will take time to get us where we want to be. It will not happen overnight, and we should be mentally prepared to deal with this reality. Whereas one mistake can immediately lower a credit score and have a lasting effect, establishing (or reestablishing) and building credit is a marathon. We must be patient. Likely, we may think that if we accumulate more debt, and make payments on time, it shows that we are back on track. But this is not likely to be the solution. Again, it takes time. Adding more debt often increases credit risk and utilization, which can work against the goal of improving your score. We may also think that we can look at third party platforms who claim to be able to fix our missteps or boost our scores. This is a fallacy. There is nothing these companies can do that is over and above finding reporting errors that we can do on our own by frequently reviewing our credit reports. As consumers, we can get a free copy of our credit report annually from each credit reporting agency… Failing to check credit reports is a common mistake. In general, many mistakes trace back to how credit scores are actually calculated. Payment history, credit utilization, length of credit history, credit mix, and new credit are the five factors that determine nearly every credit score. Rushing to add debt, closing accounts, missing payments, or chasing quick fixes all work against those factors. When we understand what the scoring models reward, it makes it easier to modify our behavior to what will benefit us, and not what will penalize us.”
Dr. Roy Baker Jr, CPA – Instructor, Stark State College
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