When it comes to debt, give Wisconsin a lot of credit.

Residents of the Badger State have one of the highest average credit scores in the nation, according to a study released Thursday by Experian Inc. Furthermore, they have fewer credit cards, and use them less, than the average American.

Experian, a credit reporting company based in Irvine, Calif., found the average credit score in Wisconsin to be 697 vs. 678 nationally.

The scores are on a scale of 330 to 880.

Anything less than 660 is considered poor, anything higher than 720 excellent.

Wisconsin's score was 11th highest in the nation. South Dakota, at 710, was No. 1, followed by Vermont, 709, and Minnesota at 707.

The nation's worst score was in Texas at 651, followed by Nevada at 656.

"I am not really surprised by the score," said Kathryn Crumpton, manager of the Consumer Credit Counseling Service in Milwaukee.

"It is just the way we are. They always talk about that Midwestern work effort. We take things a little bit more seriously."

Experian also reported figures for people with scores less than 660 and higher than 720, the categories containing most people. Nationally, 43% are under 660, 45% above 720.

Here, too, Wisconsin does better than the nation. Badgers in both categories owe less and have fewer credit cards than people across the country.

That helps to bring up the average score in Wisconsin, said Greg McBride, a senior financial analyst for Bankrate.com in North Palm Beach, Fla.

A large part of the credit score measures the amount of debt a person uses compared to the amount he or she has available.

People living in lower-cost-of living locations such as rural areas tend to do well on such measures, McBride pointed out.

Credit scores are used to determine whether to grant credit and, if so, on what terms the higher the score, the lower the rate, as a general rule.

The scores are increasingly being used for other things, such as employment decisions and as a reference by landlords, making a good score more important than ever.

In addition to the amount of credit used, the scores depend on how quickly bills are paid, McBride said.

About 40% of people pay their bills in full each month, giving their ratings a powerful boost.

"Pay your bills on time, and pay your debt down over time," McBride said. "Together, those factors account for 65 percent of your credit score."

Other factors include the type of credit a person has revolving store accounts or mortgages, for example the length of their credit history and the number of times credit reports are requested.

"If you have had some slip-ups in the past, that holds your score back," McBride said.

"But as time passes and you make more and more of payments on time, your score will go up."

The Experian study used a sample of 3 million reports nationwide as of the end of November.

What is your score?

A person can receive one free credit report a year from each of the three consumer credit reporting companies Equifax, Experian and TransUnion.

For more information, go to www.annualcreditreport.com or call (877) 322-8228.

To find the average credit score for any state, go to www.nationalscoreindex.com/USScore.aspx

Copyright 2006, Journal Sentinel Inc. All rights reserved. (Note: This notice does not apply to those news items already copyrighted and received through wire services or other media.)

Copyright 2006 Journal Sentinel Inc. Note: This notice does not apply to those news items already copyrighted and received through wire services or other media
Provided by ProQuest Information and Learning Company. All rights Reserved.