MINNEAPOLIS (FOX 9) - Many Minnesota residents believe their credit score is lower than it actually is, which could lead to them forgoing the benefits that come with their actual, more positive scores.
A study by CardRates.com asked 3,000 people in Minnesota to estimate their credit scores, with the average coming to 681. The current state average score sits at 724.
This ranks Minnesota as the No. 2 state in the country where people underestimated their scores the most, with North Dakota claiming the No. 1 spot.
The data show an overall cautious approach that analysts say could mean Minnesotans are missing financial opportunities while agreeing to less favorable credit terms. Having a higher credit score can result in more favorable loan rates.
The study shows the top five states where survey respondents underestimated their credit scores, showing the estimated credit score, actual credit score and the difference.
- North Dakota: 666 (715); -49
- Minnesota: 681 (724); -43
- Rhode Island: 668 (709); -41
- Vermont: 681(721); -40
- Nebraska: 676 (715); -39
Meanwhile, overestimating a credit score can lead people to make bad financial commitments such as high-interest long-term loans.
Below is data for the top five states where survey respondents overestimated their credit scores.
- Mississippi: 676 (662); +14
- Louisiana: 677 (669): +8
- Arkansas: 684 (677): +7
- Kentucky: 687 (680) +7
- Oklahoma: 682 (675): +7
