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Texas Has The Sixth Worst Credit Scores In The US

The average Texan has a score of 674
Photo: vgaragestock | Shutterstock

A recent study showed that the average credit score in Texas is 674, which ranks 6th lowest in the U.S. 

According to WalletHub, the average credit score in the U.S. is 695 using the VantageScore model. The average American is just below the bottom of the ‘good’ credit range, which is 700 and the beginning of the ‘excellent’ credit range is 750. But some state’s residents have a better credit average than others. In order to determine the states with the highest and lowest credit scores, WalletHub compared the average credit scores of residents in each of the 50 states as of October 2022 using TransUnion data.

Texas’ average credit score is 674, which isn’t bad, but it’s not great either. Compared to Minnesota, which has an average score of 724, Texans may want to consider fixing their credit scores.

Part of the issue of the lower credit score is the amount of credit card debt Texans have racked up since the COVID-19 pandemic. Local Profile previously reported that the average household credit card debt is around $8,681 in Texas, which has increased from $593. In the state, there is a total of $93,218,948,370 in debt due to credit card use.

When it comes to credit cards, if you have one with high fees and low rewards, it might be worth closing. Associate Professor of Finance at Winthrop University Philip Gibson explained that building credit takes time, but it is not as impossible as it may seem. 

“Be patient. Building good credit takes time,” Gibson said. “You must be consistent with your bill payments. Take the necessary steps to avoid derogatory marks on your credit report. For example, if you are not able to make a payment on time, reach out to the lender, and ask for an extension.”

So next time you are thinking about putting off that bill, remember how it will affect your credit.