A solid credit score is a person’s lifeline for financial rewards such as qualifying for loans with lower interest rates or credit cards with better benefits. Factors like payment history, amount of debt and types of credit used are the root forces behind developing a healthy credit score. But is the creation of credit scores equal in each state? It may be that some states are better set up for credit success than others.

On a quest to find distinct credit advantages, WisePiggy analyzed a number of financial factors for all 50 states and Washington, D.C. to create a ranking that shows you where your state fares for smart use of credit.

Key Takeaways

• As a region, the west is most likely to entirely pay off credit card balances monthly
• Massachusetts takes the top spot off all states, with sterling credit credentials off-setting a high cost of living.
• Southern states, in general, had the poorest credit profile.

Methodology

• We analyzed current credit score information from Equifax, U.S. Bureau of Labor statistics, housing costs, and our own survey data of married Americans 25 and older.

1. Massachusetts

• Equifax credit score: 719
• Median income: $56,410
• Median house price: $325,900

The blend of an above-average credit score and high median income in Massachusetts offsets the high housing prices and results in the top spot on this list. The Northeast, as a whole, is the second most likely region to entirely pay off credit card balances monthly, narrowly behind No. 1-ranked West by 5.33 percent.

2. Connecticut

• Equifax credit score: 716
• Median income: $54,410
• Median house price: $239,700

This tiny state put up a mighty battle against Massachusetts for the top spot. The three-point credit score difference and lower median income are the contributing factors for the second-place ranking.

3. Minnesota

• Equifax credit score: 722
• Median income: $47,370
• Median house price: $179,600

Experian recently announced that Minnesota cities Makato, Rochester, Minneapolis and Duluth have the highest credit scores in the U.S. However, as an entire state and region, a few factors bring Minnesota down. The Midwest has the lowest propensity to pay off credit cards on a monthly basis (54.48 percent), and 24.06 percent of its residents are likely to carry a balance over $2,000, which the low-balance carrying residents of the West and Northeast are opposed to. Minnesota is the only Midwestern state to make this list.

4. New Hampshire

• Equifax credit score: 719
• Median income: $46,210
• Median house price: $216,900

New Hampshire is one of six Northeastern states included in this list. What is making this region’s credit thrive? The Northeast favors paying off credit cards each month by 61.05 percent, and only 20.28 percent of the Northeast survey respondents carry a balance over $2,000 on their credit cards.

5. New York

• Equifax credit score: 710
• Median income: $54,580
• Median house price: $254,100

For a median house price in the Empire State $254,100 may seem low, especially when real estate in the SoHo neighborhood goes, modestly, for $3 million or more. But smaller northern areas like Star Lake have housing prices averaging $99,000. Even with the lowest Equifax credit score of the Top 10 states, the benefits of having a higher average income and overall credit responsibility earns New York a spot on the list.

6. Vermont

• Equifax credit score: 724
• Median income: $44,060
• Median house price: $220,600

Vermont has the highest Equifax credit score in the country. Although a high credit score most likely means prime lending rates, having the lowest median income on the list and a slightly higher housing price keeps Vermont and its excellent credit average from ranking higher.

7. Colorado

• Equifax credit score: 716
• Median income: $48,950
• Median house price: $252,000

The first state in the Western region to make it on the list and a thriving pick at that. Forbes recently named Colorado one of the best states for business. The Bureau of Labor Statistics also noted Colorado has the ninth lowest unemployment rate in the country. Perhaps the culmination of economic stability will encourage a bump in Colorado’s credit score and median income soon.

8. Washington

• Equifax credit score: 715
• Median income: $52,090
• Median house price: $261,600

Washington was tough competition for other states with its median income and credit score both ranking in the 90th percentile overall, in addition to an unbeatable regional score. The main deterrent for Washington is a relatively high median house price — thanks a lot, Mercer Island.

9. New Jersey

• Equifax credit score: 711
• Median income: $52,800
• Median house price: $286,800

New Jersey’s income to housing price ratio is just enough to earn the garden state a rank on this list despite having almost the lowest credit score of the Top 10 states. We can’t be too hard on New Jersey though, credit scores above 700 are good, and can still qualify for credit advantages like prime lending rates.

10. Hawaii

• Equifax credit score: 722
• Median income: $45,420
• Median house price: $529,800

Even with the highest median housing price in the nation, Hawaii prevailed as a top state for credit. Clearly, the responsible financial habits keep the credit scores high on the islands. The Western region only had 19.81 percent of survey respondents indicate their credit card balance was over $2,000 which was the lowest in the nation.