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Credit scores are supposed to be a way to size up your financial responsibility. But in practice, they often incentivize people to take on debt and can be riddled with errors. Studies show credit scoring disadvantages people of color, and many people are shut out of the system altogether.
Tamara Nopper, an associate professor of sociology at Rhode Island College, said within the current system, our economy is "built on taking out loans and taking on debt to meet basic human needs like housing, health care and higher education.”
No matter your thoughts, your credit score still matters, whether your landlord wants to check your credit before you sign a lease or you need to finance a new car. Even if you don’t like the system, most people can’t afford to opt out of it.
Chip Lupo, an analyst at WalletHub, encourages people to be diligent with their credit to avoid the adverse effects of the system.
"True diligence also includes monitoring your credit reports regularly to make sure there are no inaccuracies and swiftly reporting anything that’s out of place,” Lupo said last year. "Mistakes on your credit report can unfairly hurt your credit score.”
WalletHub, meanwhile, ran the numbers to see which states have the highest and lowest average credit scores. Continue reading to see the top and bottom 5 states.
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Washington ranked fifth. Residents there have an average credit score of 716.
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Wisconsin ranked fourth. Residents there have an average credit score of 718.
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Vermont ranked third. Residents there have an average credit score of 720.
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New Hampshire ranked second. Residents there have an average credit score of 721.
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Minnesota ranked first. Residents there have an average credit score of 723.
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Georgia ranked 46th. Residents there have an average credit score of 678.
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Texas tied for 48th. Residents there have an average credit score of 677.
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Alabama tied for 48th. Residents there have an average credit score of 677.
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Louisiana ranked 49th. Residents there have an average credit score of 673.
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Mississippi ranked last. Residents there have an average credit score of 669.
