Vermont Business MagazineVermont residents are the 5th-best at managing money in the US, according to a new CreditCards.com report.Vermont’s average credit score is 19 points better than expected (based upon the state’s median income).Vermont also has the nation’s 3rd-best credit score despite a median income that’s just 7 percent above the national median. Overall,Montana residents are the best at managing money and Marylanders are the worst, according to the CreditCards.com analysis. The study compared each state’s average credit score with its median income. Vermont's average credit score is 696 (best in New England, third highest in US) and average credit card debt is $4,371 (second best to Maine).
“Conventional wisdom is that people with more money have better credit scores, but we found this is not always the case,” said Matt Schulz, CreditCards.com’s senior industry analyst.
In Montana, for instance, the average credit score is 32 points higher than one would expect based upon the state’s median income (which is 13% below the national median). Montanans are overcoming this obstacle to post the country’s 11th-best credit score. That led CreditCards.com’s income-adjusted ranking, followed by neighboring South Dakota and North Dakota. Maine and Vermont came in fourth and fifth place, respectively.
Maryland, the worst state at managing money, is a good example of why a high income doesn’t necessarily translate into financial success. The Old Line State has the second-highest median income in the U.S. (33% above the national median) but only the 31st-best credit score. Maryland’s average credit score is 37 points lower than its income suggests it should be.
Nearby Washington, D.C. fared second-worst on the list, followed by Alaska, Virginia and Texas.
“The main takeaway is that good financial habits like paying your bills on time and keeping your debts low are what build a solid credit score, not how much money you earn,” Schulz added.
Credit score data courtesy of Experian. Median income data courtesy of the United States Census Bureau. Full methodology available upon request.
Source: Austin, Texas –January 14, 2016–CreditCards.com.www.creditcards.com
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