Arkansas Average Credit Score Achieves Impressive 1.6% Increase Amidst COVID Challenges

Failures in credit card balances and loans can easily impact an individual’s average credit score. Experian reports that 35% of a FICO credit score is calculated based on payment history.

While the average credit score in the Western U.S. rose by nearly 1.9%, the Northeastern region—once the epicenter of the early COVID-19 outbreak—experienced a more gradual easing of pandemic restrictions, resulting in a slower economic rebound. (Photo: Know Your Credit Score)

Average Credit Scores Increase

According to a published article, Americans saw large increases in their credit scores as delinquencies on loans decreased.

Millennials benefited the most, with an increase of 19 points between 2019 and 2022, but they were followed closely by Generation X with an increase of 18 points over the same period.

The Silent Generation, which holds the highest average credit score, observed the smallest percentage shift in credit scores, registering a mere 3-point uptick.

COVID-19 regulations and relief measures exhibited discrepancies on a state-by-state basis, yielding diverse financial consequences across the nation. Moreover, the virus and its impact on public health displayed uneven patterns throughout the United States, sometimes leading to extended constraints in specific regions.

While the average credit score in the Western U.S. rose by nearly 1.9%, the Northeastern region—once the epicenter of the early COVID-19 outbreak—experienced a more gradual easing of pandemic restrictions, resulting in a slower economic rebound.

Idaho, Alaska, Arizona, and Nevada emerged as leaders at the level of individual states with an average credit scores increase of 2.3% or 16 points higher.

At the other end of the spectrum, North Dakota (+0.8%) and South Dakota (+1.0%) had the smallest credit score increases, but both had an average credit score of 727 in 2019, the highest credit scores at that time behind only Minnesota.

The data used in this analysis is from the Board of Governors of the Federal Reserve System and Experian. To determine the states with the biggest increase in credit scores during COVID, researchers at Upgraded Points calculated the percentage change in average credit score from the full year 2019 to September 2022.

READ ALSO: Credit Scores Matter to Just 50% of Americans When Qualifying for a Mortgage, Study Reveals

Arkansas Average Credit Score Achieves Impressive 1.6% Increase

In the event of a tie, the state with the greater total change in average credit score during the same time period was ranked higher.

Here is a summary of the data for Arkansas average credit scores:

• Percentage change in average credit score (2019–2022): +1.6%
• Total change in average credit score (2019–2022): +11
• Average credit score in 2022: 694
• Average credit score in 2019: 683
• Average household debt-to-income ratio (2022): 1.360

Here are the statistics for the entire United States for reference:

• Percentage change in average credit score (2019–2022): +1.6%
• Total change in average credit score (2019–2022): +11
• Average credit score in 2022: 714
• Average credit score in 2019: 703
• Average household debt-to-income ratio (2022): 1.558

For more information, a detailed methodology, and complete results, see States With the Biggest Increase in Credit Scores During COVID on Upgraded Points.

READ ALSO: No More Credit Score Impact: Tax Liens Now Removed from Credit Reports