Texas' average credit score has gone up. That's good, right? About 5 years ago, maybe 6, there was a report that showed the average credit score of someone in the Dallas Ft Worth area was 635. At today's standards where most lenders won't lend money below a 640, that meant the average person back then would not be able to get a loan today. I wanted to see how things have changed with the credit crunch.
In 2006, I wrote a post Dallas - Lowest Average Credit Score, and that was with Dallas on the rise with a 650 average score. At the time, I wasn't in Austin, so I did not mention Austin's average credit score, so I don't have a basis there to compare.
Fast forward to 2011, and I'm curious as to what is going on in Texas, as a whole. Surprisingly, Texas is still very far down the list. How far? Texas is the second lowest credit score in the country, on average at 670. 670 is better than 635 and still significantly better than 650, but we're still down far in the list. The National average is 692, but since it's an average and not a median, 58% of Americans have a score over 700.
I decided to go further to see what was going on at the city level. Both Dallas and Austin have had tremendous growth with relocation people moving from all over the country. Do these people bring in higher scores to help our averages?
According to Experian, the average credit score for Austin TX (since that's my main focus now) is a whopping 740!! That's awesome! Most lenders view 720 as a no-brainer loan and 740 as the top tier loan criteria! The average person in Austin has great credit! They also show the unemployment rate as 7.4% which is significantly lower than the National Unemployment rate of 9.2%.
Back up to Dallas for a second, since that's where my roots are. The average credit score is now, wait for it, wait for it... 718 according to Experian! Wow! That's a huge increase! The average credit score in Dallas is actually higher than the National average! How did that happen? Again, I feel it's about the relocation people coming into the area.
Relocation isn't the only thing bringing up credit scores. In my opinion, I feel many people have learned from their past mistakes and are doing better in their lives. They're not overspending as much and are learning to actually pay their bills on time instead of putting it off.
The way Texas is moving, no wonder several of the cities are always at the top of "Best of" lists, including the latest with Austin as the Best Place to Live in 2011!
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Copyright© 2011 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
* Real Estate Recovery - Texas' Average Credit Score Second Lowest in Country - Austin TX at 740 * was first published on donnahomesblog.com.