Top 10 US states with the highest average credit scores

The average American has a pretty decent credit score. The average Minnesota resident has an even better one.

For the third year in a row, Minnesota residents have the highest credit scores in the U.S. with an average VantageScore credit score of 726, a recent report from WalletHub finds. Mississippi residents have the lowest average credit score of 672, but despite the 54-point difference, both the highest and lowest average scores qualify as "good," according to VantageScore's model.

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A couple of factors may explain why Minnesota residents tend to have higher credit scores. For one, Minnesotans carry relatively low average credit card balances, compared with the rest of the U.S., Bankrate reports.

This may lead residents to have lower credit utilization rates, which is "highly influential" in how VantageScores are calculated. Your credit utilization rate is the amount of available credit you use at a given time.

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Additionally, Minnesota has one of the lowest average credit card delinquency rates in the country, according to a separate WalletHub report. Because payment history is "extremely influential" in how VantageScores are calculated, consistent on-time payments likely boost scores in this state.

Here's a look at the average credit score in every state.

Breaking down credit scores by state. (CNBC)

Alabama: 680
Alaska: 705
Arizona: 698
Arkansas: 683
California: 705
Colorado: 714
Connecticut: 711
Delaware: 701
Florida: 694
Georgia: 682
Hawaii: 715
Idaho: 715
Illinois: 705
Indiana: 698
Iowa: 714
Kansas: 707
Kentucky: 689
Louisiana: 677
Maine: 715
Maryland: 701
Massachusetts: 718
Michigan: 704
Minnesota: 726
Mississippi: 672
Missouri: 700
Montana: 715
Nebraska: 714
Nevada: 687
New Hampshire: 723
New Jersey: 710
New Mexico: 690
New York: 706
North Carolina: 696
North Dakota: 717
Ohio: 701
Oklahoma: 683
Oregon: 715
Pennsylvania: 708
Rhode Island: 709
South Carolina: 688
South Dakota: 718
Tennessee: 692
Texas: 680
Utah: 712
Vermont: 722
Virginia: 708
Washington: 718
West Virginia: 689
Wisconsin: 720
Wyoming: 708

Your credit score doesn't have to be perfect

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You don't need a perfect 850 credit score to earn the best financial benefits. If you boost your score to the "excellent" range, though, you can snag the most favorable interest rates from lenders. That requires a FICO score of at least 800 and a VantageScore of at least 781, according to Experian.

Boosting your credit score is relatively straightforward. As long as you consistently pay your credit card bills on time and try to keep your balances low, you can maintain a healthy credit score and gradually improve it, financial experts say.

"Even if you have a bad credit score, time is the best healer," Abdul A. Rasheed, a University of Texas at Arlington professor, said in WalletHub's average credit score report. "Roughly three years of good management of your finances will get you back on track."

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