Residents Of The West And New England Have Nation's Highest Credit Scores
That's one of the findings of a new analysis of credit scores and loan offer information from
Western and Northeastern metros dominate the top spots on the credit score rankings, accounting for ten of the top twenty areas. Metros in Southern states account for virtually all of the twenty lowest-ranking cities.
Credit scores represent people's creditworthiness for loans through a calculation of several different factors, including the amount an individual currently owes to lenders and his or her credit history. Most credit score models range from a low of 300 to a high of 850, with those above 720 usually considered excellent loan candidates and those below 500 generally classified as poor candidates. The average score in this study is 643.
"Because credit scores are so closely tied to interest rates offered to borrowers, a credit score difference of even 50 points can mean substantial financial savings for large financial transactions like buying a home, financing a car or consolidating debt," said
People living around
With an average credit score of 620,
Credit and loans
In 2015, borrowers with a credit score of 720 and higher were offered APRs averaging 4.15% for a 30-year fixed rate purchase mortgage. For a
However, borrowers with a credit score between 620 and 639 were offered APRs averaging 4.93%. For the same loan, the borrower with the lower credit score would pay about
"If you are planning a major purchase in the next year or two, there are several steps you can take now that will help to improve your credit score in the future," said Lebda. "Reducing balances on credit cards is a good place to start. Second, always be diligent about paying your bills on time and find ways to remind yourself of when a payment is due. Third, be sure to review details in your credit report and alert the major credit agencies to any errors. With MyLendingTree, we provide a free monthly credit score and score analysis to help consumers easily monitor and manage their credit score. We also analyze interest rates offered on our network and, based on your credit profile and existing loan details, will let you know if you could be overpaying, by how much, and what you can do to save money on your loan payments."
TOP 10 METRO AREAS BY CREDIT SCORE | |||
Region |
Metro Area |
Avg Credit Score |
Rank |
West |
|
673 |
1 |
West |
|
673 |
2 |
NE |
|
664 |
3 |
NE |
|
664 |
4 |
West |
|
663 |
5 |
West |
|
662 |
6 |
SO |
|
662 |
7 |
MW |
|
661 |
8 |
West |
|
659 |
9 |
West |
|
657 |
10 |
BOTTOM 10 METRO AREAS BY CREDIT SCORE | |||
Region |
Metro Area |
Avg Credit Score |
Rank |
SO |
|
629 |
91 |
SO |
|
629 |
92 |
SO |
|
628 |
93 |
SO |
|
627 |
94 |
MW |
|
626 |
95 |
SO |
|
625 |
96 |
SO |
|
624 |
97 |
SO |
|
624 |
98 |
SO |
|
624 |
99 |
SO |
|
620 |
100 |
30yr Fixed Rate Purchase Mortgage | |
Credit Score |
Avg. Offered Interest Rate |
720+ |
4.15 |
680-719 |
4.36 |
660-679 |
4.64 |
640-659 |
4.79 |
620-639 |
4.93 |
580-619 |
4.68 |
METHODOLOGY: The study is based on data from more than four million loan requests submitted through
Credit Score Breakdown
Credit scores for consumers who receive at least one loan offer are slightly higher on average when compared to all loan shoppers:
Credit Score |
Percent of All Loan |
Loan Program |
Avg Credit Score of | |
760+ |
8.0% |
30-yr Fixed Purchase |
713 | |
720-759 |
11.3% |
30-yr Fixed Refinance |
722 | |
680-719 |
16.0% |
3-yr Personal Loan |
690 | |
640-679 |
18.3% |
|||
600-639 |
17.2% |
|||
560-599 |
15.0% |
|||
Below 560 |
14.1% |
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704-943-8208
Megan.Greuling@LendingTree.com
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SOURCE
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