Focusing on Improving Credit Scores Can Lift People Up Across America

In America, where you live can determine how long you live, and the disparity in life expectancy is not solely about access to healthcare or education. It’s intricately tied to something less obvious but profoundly impactful: your neighborhood's average credit score. According to research from Operation HOPE, people in neighborhoods with an average credit score of 700 or higher can live 10 to 20 years longer than those in areas where the average score is around 580. This stark difference is a powerful indicator of how financial health directly correlates with overall well-being. The findings are clear: financial wellness is a crucial determinant of overall well-being and life expectancy.

A credit score is more than just a number; it’s a measure of financial stability, opportunity, and health. High-credit-score communities tend to have better access to credit, lower interest rates, and more opportunities for homeownership and entrepreneurship. This creates a positive cycle that strengthens the local economy and improves quality of life. Translation: More hope. In contrast, neighborhoods with lower credit scores often struggle with underinvestment, higher crime rates, and poorer health outcomes—issues that are exacerbated by the stress and financial instability that low credit scores represent.

The national average credit score recently hit 695, the highest in 13 years, thanks in part to the financial reprieve provided by the COVID-19 pandemic's stimulus measures. However, this average masks significant disparities. In states like Mississippi, where the average credit score is as low as 666, the impacts of low financial health are felt most acutely. These communities often lack the resources and opportunities to improve their financial situation, trapping residents in a cycle of poverty and poor health. Mississippi has the lowest credit average and median credit score in America, and Minnesota has the highest in the nation, at 742. And this has a direct effect on one’s level of hope, “how you’re living,” and literally—how long you live.

Specifically, a difference of about 100-150 points in average credit scores between neighborhoods that are geographically close (for example, just 15 minutes apart) can correlate with a 20-year difference in life expectancy. If you live in a 500 credit score neighborhood, you are more likely than not to live to 61 on average, and if you live in a 700 credit score neighborhood that would average life span extends to 81 years on average.

If you live in a 500 credit score neighborhood—whether it be black and white urban, or poor white rural—here’s what you see: a check cashier, next to a payday lender, next to a (car) title lending store, next to a rent to own store, next to liquor store, and a church down the street, trying to make you feel just a little bit better once a week.

This is why we must focus on raising credit scores by an average of 100 points in these underserved communities, whether they are predominantly Black and brown urban areas or white rural ones.

Read More: Financial Literacy Is the Civil Rights Issue of This Generation

There’s a clear path forward to achieving this change. Communities should rally together to teach financial literacy at the earliest possible level, in schools and wherever you find our kids. Combine this financial literacy teaching with an aspirational moment, like you showing up as a guest instructor and wearing whatever professional gear that you wear to work, and presto, kids also have a living role model example of who they could be when they grow up. That use to be called home economics class where I grew up. More powerfully, you, local government leaders and business leaders should partner together to attack this community wide problem – coaching up individuals, communities and zip code areas near you with credit scores in the 500s. Your goal should be 100 point increase over a 12-18 month period. The easiest lift and an early success here is for individuals to send a letter to the three credit bureaus (Trans Union, Equifax, and Experian, a partner of Operation HOPE), challenging items that you and others identify as “errors on your credit report” (“well, that’s just not me or mine” typically qualifies). The Fair Credit Reporting Act states that if they cannot confirm the item or items, then they must remove them — within 30 days. When errors get removed like this, which happens often with my team of coaches, you can see an easy and quick 20-30 point score increase on your credit report. Think about what that early win does to your confidence and self esteem. It’s finally working for you then, versus working on you, or against you. And while organizations like mine are here to help, you can also download easy to use tools and do much of this yourself.

By improving credit scores, we can transform these neighborhoods into 700 credit score communities, where residents have better access to financial services, can borrow at lower interest rates, and are more likely to own homes and start businesses. These changes can lead to increased investment in the community, lower crime rates, better schools, and improved health outcomes. Simply put: More opportunity. More access. More capital. More optimism.

Imagine the impact if we could achieve this transformation across America. Within less than a decade, we could see a significant reduction in the economic and health disparities that have plagued our nation for generations.

The time to act is now. We have the tools and knowledge to make 700 credit score neighborhoods a reality, and in doing so, we can build a stronger, healthier, and more equitable America. This is not just a financial initiative; it’s a call to action for social justice, economic empowerment, and national renewal. Let’s commit to raising the credit scores of all Americans, from the urban centers to the rural heartlands, and create a nation where everyone has the opportunity to live a long, healthy, and prosperous life.