Cardratings.com in Foster City, Calif. recently released the results of a national study to find out what states have the best and worst credit conditions. The credit conditions of each state were determined and ranked using five categories: average credit score from Equifax, foreclosure rates from Attom Data Solutions, Credit card delinquency rates from TransUnion, unemployment rates from the U.S. Bureau of Labor Statistics and bankruptcy data from federal court records.

States primarily in the Northeast and Midwest made the best list, while states primarily in the South and West made the worst list.

The Best States

No. 1: North Dakota

The Peace Garden State landed in the top 10 of all five of the study’s categories and earned its overall No. 1 ranking because North Dakota maintains the lowest foreclosure rate in the nation, Cardratings.com reported from its study.

No. 2: South Dakota

The Mount Rushmore State also ranked among the 10 best states in all five categories, but it earned the second best spot because South Dakota has the country’s lowest unemployment rate.

No. 3: Vermont

Though it didn’t lead in any one of the five categories, the Green Mountain State ranked third overall because of Vermont’s strength in the top 10 rankings across the board, according to Cardratings.com.

No. 4: Montana

The Treasure State also ranked among the 10 best states in each one of the five categories except employment, though Montana narrowly missed the top 10 in that category with a jobless rate of only 4%.

No. 5: Minnesota

People in the North Star State have an average credit rating of 722.3, the highest in the U.S. Consequently, Minnesota also has one of the lowest credit card delinquency rates among all the states, the study found.

No. 6: New Hampshire

The Granite State was tied with South Dakota for having the nation’s lowest jobless rate. New Hampshire also was better than average in the other four categories.

No. 7: Nebraska

In four of the study’s five categories, the Cornhusker State was ranked among the 10 best states despite Nebraska’s bankruptcy rate that landed in the middle of the pack.

No. 8: Iowa

The Hawkeye State was ranked among the 10 best states in three out of five of the study’s categories. Additionally, Iowa scored better than average in all five categories.

No. 9: Hawaii

While its foreclosure rates are a little higher than in most states, Cardratings.com reported, the Aloha State made the No. 9 spot because of its very low unemployment and bankruptcy rates.

No. 10: Maine

The Pine Tree State made the list because of its low bankruptcy rate. Maine also did better than average in all of the five categories, according to Cardratings.com.

No. 10: Massachusetts (tie)

Despite its somewhat high foreclosure rate, according to Cardratings.com, the Bay State holds the third lowest jobless rate in the country and posted strong rankings for average credit scores and low bankruptcy rate.

The Worst States

No. 1: (tie) Alabama

According to cardratings.com, Alabama holds the second highest bankruptcy rate in the nation. The Heart of Dixie State also landed among the 10 worst states for credit scores, credit card delinquencies and unemployment.

No. 1: (tie) Georgia

While Georgia has a bankruptcy rate almost as bad as Alabama’s, the Empire State of the South also is among the five worst of any state for average credit score and credit card delinquency rate, according to the study.

No. 3: Nevada

While the Silver State has come a long way since the Great Recession, Nevada continues to have one of the 10 highest foreclosure rates in the nation, cardratings.com found in its study. Nevada also is among the 10 worst states for average credit scores and credit card delinquency rates.

No 4: Louisiana

The Pelican State has a foreclosure rate that is a little better than in most states, Cardratings.com’s study reported, but Louisiana also holds a credit card delinquency and average credit score that each rank the second worst in the nation.

No. 5: Mississippi

Although the Magnolia State has a foreclosure rate that is among the lowest in the country, Mississippi made the bottom 10 states in all of the four other categories, including the lowest credit score and the highest credit card delinquency rate in the nation, according to cardratings.com.

No. 6: Florida

The Sunshine State made the worst list because Florida has the fourth highest foreclosure rate in the country, according to the study.

No.7: Tennessee

Cardratings.com’s study placed the Volunteer State on the worst list because Tennessee has the highest bankruptcy rate in the U.S.

No. 8: (tie) Illinois

The Land of Lincoln State ranked in the bottom 10 in bankruptcy, unemployment and foreclosure rates though Illinois was slightly better than most states in average credit score and credit card delinquency rates.

No. 8 (tie) New Mexico

With a jobless rate of 6.7%, the Land of Enchantment holds the second highest unemployment rate in the country.

No. 10 : Oklahoma

The Sooner State came in at the bottom 10 rankings in credit card delinquencies and average credit score, according to cardratings.com’s study.

Instant Insights /

Study Reveals Best & Worst States for Credit Conditions

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