This Michigan City Has the Lowest Credit Scores in America

Managing a credit score isn't the easiest aspect of adult life, but the difficulty is ramped up considerably based on a variety of often uncontrollable factors. Location is one such factor.

Michigan is no stranger to poverty-riddled communities, which can carry widespread negative impacts. Naturally, credit scores are low in these communities, which can make it difficult for anyone to recover.

WalletHub recently published a study ranking the top 182 most populated American cities based on average credit scores. Two Michigan cities were featured on the list, and while neither performed exceptionally well, one city ranked dead last with a significant cushion.

With its citizens holding an average credit score of 566, Detroit has the lowest credit score in America. The city that ranked No. 181, Memphis, Tennessee, has an average credit score of 590.

The national credit score average, according to Experian, is 715. Only one city has an average score higher than 700, South Berlington, Vermont.

Grand Rapids also landed in the bottom half of the ranking at No. 94, with an average credit score of 627.

With Detroit, the Motor City is clearly in the midst of a comeback in a variety of ways. Still, just because the city is making strides doesn't equal immediate relief for citizens who have been struggling for years, many for decades.

Credit scores are a reflection of financial reliability but also a measure of financial security, which many people in Detroit lack. According to ZipRecruiter, the average salary in Detroit is $69,572. However, according to a 2022 study, 33% of Detroiters live in poverty.

Of course, a lot has changed in Detroit over the past three years, so that percentage has likely dropped, but it certainly hasn't dropped enough to improve credit scores within the city. Hopefully, Detroit will continue to improve, and all of its residents will feel some financial relief.