Low Mortgage Rates and Credit Scores Combine for State Report Card

Mission Viejo, US, 05/03/2012 / SubmitMyPR /

LowerMyRates.com, a website specializing in everything from low mortgage rates to merchant account assistance, is one company who found a recent study particularly interesting. A study recently released by credit reporting company Experian shows the averages of credit scores across the US. The trends revealed in the study paint a picture of the region’s most impacted by the struggling economy, with a notable geographic pattern. Although Experian's 330-830 scale differs from the FICO scale, the latter does not provide state totals.

It is no surprise to most that the states in the most dire need of credit repair are also those who have the highest unemployment rates. Nevada, the state with the highest unemployment rate, reports the lowest credit score, while northern states, such as Minnesota and the Dakotas, were those with the lowest unemployment and highest credit scores at 718, 715, and 714 (respectively).

However, when looking at credit scores for those who applying only for mortgages, the trend shifts. The data indicates that, at least statistically, lenders in areas that have low credit are also more likely to lend to applicants, as is the case in Nevada and Phoenix, and offer low mortgage rates to facilitate that process. These former boom-regions prior to the 2008 recession have been struggling since that event, and the fact that lenders are allowing borrowers with low credit ratings indicates that many believe that things have finally bottomed-out. Based on the Mortgage Marvel FICO scores, which range from 300-850, California, Oregon, and Wisconsin lead the way in top credit ratings. Part of what goes into the development of this, though, is the housing market, urbanization, and the financial savvy of the state's population.

Some of these statistics, as in any set of data, can be caused by a variety of factors, though. Part of the difference in these statistics can be attributed to income, as those with higher incomes are clearly going to be more able to take out mortgages, and the proportions of that wealth distribution within that state are as varied as the states themselves. As such, the data that is present does not reflect the lower incomes of those people who make up much of the population in states like Mississippi and Arkansas--the two states with the lowest credit scores as well as the nation's lowest median household.

However, every study has potential factors that indirectly influence the results of a study outside of the numerical data. That said, though, all things considered, the study does quite well at revealing the credit situations across the nation. The numbers show that, despite the best efforts and attempts to make low mortgage rates available to all, credit repair services are going to be in demand for quite some time.

For more information about credit repair, low mortgage rates, and other consumer finance services please visit
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