Alabama ranks near the bottom nationally for average credit score, according to a new 2026 study released by personal-finance website WalletHub.

The report shows Alabama’s average credit score is 677, the third-lowest in the United States, trailing only Louisiana (673) and Mississippi (669). The findings come as household debt continues to rise nationwide amid persistent inflation and high interest rates.

WalletHub analysts note that credit scores vary widely by state, driven by differences in income levels, employment, and overall economic stability.

“The average credit score by state ranges anywhere from 669, which is in the middle of the fair credit range, to 723, which is well into the good credit range,” said Chip Lupo, a WalletHub analyst. “That’s a 54-point difference.”

While Alabama ranked near the bottom, several Upper Midwest and New England states topped the list. Minnesota had the highest average credit score at 723, followed by New Hampshire at 721 and Vermont at 720. All three states fall well within the “good” credit range and are approaching the “excellent” category.

Nationally, the average credit score is 702, which falls within the “good” credit range. Credit scores between 700 and 749 are generally considered good, while scores of 750 and above are considered excellent, according to WalletHub.

WalletHub’s study compared average credit scores across all 50 states using TransUnion data as of October 2025. The rankings are based on the VantageScore credit-scoring model and are intended to illustrate how consumers in different parts of the country are managing debt and financial obligations.

To see the full state-by-state rankings and methodology, click here.