IS DEBT KEEPING YOUR CREDIT RATING LOW? WALKER & WALKER CAN HELP!
It’s official – the land of 10,000 lakes is also home to those with the best average credit rating of any other state.
Experian ran a State of Credit survey, and discovered the United States has an average credit score of 687.
- But Minnesota topped the charts with an average of 718
So what are most Minnesotans doing differently to keep the state’s average so high?
Minnesota Uses Credit Wisely
The survey discovered that the average Minnesota household wasn’t afraid of credit.
- The average Minnesota household has around 2.97 credit cards
However, the difference between Minnesota and some of the lower ranking states is that Minnesotans used their credit, but also made good on the payments.
There are a number of ways to improve a credit score, but the simplest way is to pay credit cards down regularly.
What keeps the average high is that while Minnesotans have multiple credit cards, there was only a 0.2 ratio of late payments on those cards per billing cycle.
- So Minnesotans pay their credit cards on time and their credit score flourishes instead of taking a hit
Every credit card owner should know that once a credit score takes a hit from late payment, it is difficult to recover.
Fiscally Responsible State of Affairs
A high average credit score is something that each resident of the state built together, but let’s be honest, the state itself helped them flourish.
- Minnesota boasts a diverse and healthy business community that also lends to its low unemployment rates
Minnesota comes in 6th in terms of the lowest unemployment rates in the United States.
Contrast this to states like Louisiana and Mississippi that have some of the lowest average credits scores and you will also note they come in 47th and 48th in terms of unemployment.
- With low unemployment and lower costs of living, Minnesota has enabled its citizens to flourish
What About Minnesota’s Low Credit Score Minority?
While Minnesota tops the charts with the best average credit score, that doesn’t mean there aren’t people out there in Minnesota with bad credit.
- It can be so easy to accrue a bad credit score that it happens to many people and they don’t even know it.
There are several ways your your credit score plummets, including:
- Late debt payments
- Not paying your debt
- Letting debt go to collections
Having a good credit score doesn’t seem like a big deal, right up until it comes to the big purchases of your life.
- Having a high credit score helps you secure lower interest loans when it comes to buying items like a car or a house
Even if you’re not looking make a major purchase, it can affect things like your insurance rates, and even the likelihood of you getting a new job.
You might also be faced with unexpected emergency repairs to your home or car, and need a way of funding them.
Need Help? Contact Walker & Walker If You’re Facing Bankruptcy
If you have a low credit score because of financial mistakes or in the past or simply because you needed a fresh start through bankruptcy, it can be rebuilt quickly with help.
- Afraid to answer the phone?
- Leave mail unopened?
- Scared to answer the door?
We know what it’s like.
If you have a low credit score because of financial mistakes in the past or more likely because of something like:
- Medical bills
We can help you.
so or simply because you needed a fresh start through bankruptcy, it can be rebuilt quickly with help.
Our goal is to leave you off on the right finaicla footing, and so we guide you through rebuilding your credit score the right way.
Your credit score will take a big hit when you file bankruptcy, but bankruptcy is for those who have no other options, and having a better credit score won’t necessarily solve your financial problems.
If you have been backed in a corner by your debts and creditors and want to join the ranks of other Minnesotans with low debt and high credit scores, contact us today at 612.824.4357 to tell us how we can help you find a good route for your financial future.
We’ve helped over 40,000 Minnesotans become free from debt. Will you be next?