Louisiana’s average credit score second-lowest in nation

BATON ROUGE, La. (Louisiana First) — Louisiana ranks near the bottom of the nation when it comes to credit health, according to a new study by Motley Fool Money.

The state’s average credit score is 690, the second-lowest in the country. Only Mississippi is worse, with an average of 680.

Nationally, the average credit score is 715. The study showed that older Americans generally score higher. Baby boomers average 746, while millennials average 691. The study also reports that 24% of Americans hold an “exceptional” credit score of 800 or higher.

Minnesota tops the rankings with an average score of 742. Wisconsin, Vermont, New Hampshire, and Washington follow closely behind.

According to the study, Louisiana sits with other Southern states that have lower averages, including Alabama, Arkansas, and Georgia.

Motley Fool Money said that lower-income individuals often struggle with credit and that rising debt during tough economic times could leave many Louisianans at risk.

Tips for improving credit health from Motely Fool Money

• Pay bills on time: Payment history is the most important factor in credit scoring. Setting up autopay can help avoid missed deadlines.
• Pay down debt: Keeping credit card balances low relative to credit limits helps improve scores. Experts recommend aiming for a utilization ratio of 30% or less.
• Limit hard inquiries: Each hard credit check, such as when applying for a new loan or credit card, can lower a score.

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