You May Be Surprised This NJ Town Has the Highest Average Credit Score

If you're like me, you have the Credit Karma app on your phone to keep an eye on your credit score.

Doesn't it drive you wild when that three-digit number changes for what seems like no reason at all?

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Your credit score, or the number that represents how likely you are to repay borrowed money, affects many things.

This number is critical to your finances, affecting your ability to qualify for loans, credit cards, and even apartments or jobs.

Credit scores typically range from 300 to 850. The higher your score, the better your credit health.

Credit scores are calculated based on information in your credit report, which tracks your financial history.

The most common ranking is your FICO Score.  There are five key factors:

• Payment history (35%) – Whether you pay your bills on time. Late payments or missed payments can hurt your score the most.

• Amounts owed (30%) – How much debt do you owe compared to your total available credit? Keeping your credit utilization under 30% is ideal.

• Length of credit history (15%) – How long your credit accounts have been active. A more extended credit history typically boosts your score.

• Credit mix (10%) – The variety of credit accounts you have, such as credit cards, car loans, or mortgages.

• New credit inquiries (10%) – How often do you apply for new credit? Too many applications in a short period can lower your score.

A "good" credit score is generally 670 or higher, while scores above 740 are considered good or excellent.

Improving your credit score takes time, but it isn't impossible.

The first thing you can do is make payments on time. It's also wise to pay down debt and hold off on new credit applications.

WalletHub surveyed the average credit score of residents in 182 U.S. cities.

New Jersey's highest average score was 633. It ranked 77 out of 182 towns across the U.S.

Based on WalletHub's findings, I was surprised to find that Jersey City had the State's highest average credit score.