RewardExpert Releases Ranking of the Best and Worst States to Live in with Bad Credit

The top three best places to live in with bad credit are:

• Iowa – With fines of more than $10,000 for Unfair and Deceptive Acts or Practices violations and one of the lowest usury rates in the country, and with a maximum interest rate of just 5.0%, the Hawkeye State is the best place in the country to live without good credit.
• Minnesota – Of all fifty states, Minnesota has the absolute lowest delinquency rate. With median income levels about 15% higher than average, Minnesota’s economy is strong enough to allow debtors to earn enough to pay back their loans. Also, mortgage rates are below average and so are prices.
• Nebraska – Nebraska is an extremely financially healthy state. With unemployment sitting at 2.7%, versus the 4.1% national average, and jobs paying well, if you have bad credit, you’re more likely to have the job and the money to pay back the higher interest rate in Nebraska than in most places in the country.

The three worst states to live in with bad credit are:

• Washington – Prices in Washington state are sky high. In-demand real estate and schools are making mortgages and school loans extremely expensive, especially for those with credit scores on the lower end. Even worse, legal usury rates are 1.5 times the national average.
• Tennessee – Just about everything about the state makes Tennessee a tough place for people with bad credit. The Volunteer State ranks in the bottom half of all but one category analyzed in the report and it serves up a maximum legal interest rate in the double digits.
• South Carolina – Home and tuition prices are high, at 41st and 43rd in the country. Judgment loan rates are capped relatively well, at 12.75%, but South Carolina is pretty easy on payday and predatory lenders and the 8.75% maximum legal interest rate is above average – neither of which are doing those with low credit any favors.

“There’s a lot you can do to improve your credit score, such as becoming an authorized user on a family member’s account, increasing your credit limit, and correcting for any inaccuracies in your credit history,” says Shteyn. “However, very few improvements can be made overnight. Be aware of what restrictions and policies are enacted in your state that can help or hinder you on your journey towards financial wellness.”

RewardExpert gathered data from a number of sources, including the Census, the Bureau of Labor Statistics, the Federal Housing Finance Agency and dozens more to determine a state’s viability for those with low credit.

For further information and to view the full report, visit the RewardExpert website.