SPEAKIN’ OUT NEWS Staff Reports
The report shows Alabama’s average credit score is 677, making it the third-lowest in the United States, ahead of only Louisiana (673) and Mississippi (669). The findings come as household debt continues to rise nationwide amid persistent inflation and elevated interest rates.
WalletHub analysts noted that credit scores vary significantly by state, reflecting differences in income levels, employment opportunities, cost of living, and overall economic stability.
“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,” said Chip Lupo, a WalletHub analyst. “That’s a 54-point difference.”
While Alabama ranked near the bottom, several states in the Upper Midwest and New England led the nation. Minnesota recorded the highest average credit score at 723, followed by New Hampshire (721) and Vermont (720). All three states fall solidly within the “good” credit range and are approaching the “excellent” category.
Nationally, the average credit score is 702, which is considered “good.” According to WalletHub, credit scores between 700 and 749 generally fall in the good range, while scores of 750 and above are considered excellent.
Credit scores play a major role in determining access to loans, interest rates, housing opportunities, and even employment in some cases. Lower scores can lead to higher borrowing costs, making it more difficult for families to build wealth or recover from financial setbacks.
WalletHub’s study compared average credit scores across all 50 states using TransUnion data as of October 2025. Rankings were based on the VantageScore credit-scoring model and are intended to illustrate how consumers in different parts of the country are managing debt and financial obligations.
The findings underscore ongoing economic disparities and point to the importance of financial education, income stability, and access to affordable credit for Alabama residents.